Hongkongers driving to Greater Bay Area cities to soon need only one insurance policy

Hong Kong drivers accessing the Greater Bay Area development zone will soon need only one motor insurance policy instead of three different policies for the city, Macau and mainland China.

The new arrangement will make it easier for people to travel to and live and work in the Greater Bay Area cities, Edward Moncreiffe, chairman of the Hong Kong Federation of Insurers (HKFI), an industry body of the 138 local insurers, said in an interview.

“There is only one bridge, but it passes through areas with three different jurisdictions, with different rules and regulations. This means all motorists now need to purchase three insurance policies covering third-party liabilities for accidents in Hong Kong, Macau and the mainland,” said Moncreiffe, who is also the CEO of HSBC Life in Hong Kong. “This is a great example of how insurance can remove frictional costs and stimulate economic activity.”

The development zone’s blue print calls for the linking of Hong Kong, Macau and nine Guangdong province cities into an integrated economic and business hub. The implementation of a single motor insurance policy for all three jurisdictions is expected to encourage the flow of talent and capital, an integral part of the Greater Bay Area project, between the 11 cities. Its implementation could potentially coincide with the reopening of the border between Hong Kong and mainland China – closed since early last year – as well.