The Peninsula’s owner and SF Holding set up captive insurers in Hong Kong
The Hongkong and Shanghai Hotels CEO says the move enhances its risk management capabilities and supports its long-term growth
A parent company sets up a captive insurer to provide insurance protection for all firms within the group. This helps manage risks more effectively and retain profits that would otherwise go to an external company.
“[The] arrival of the two captive insurers bears testimony to the successful execution of our strategy of developing Hong Kong into a leading risk management centre,” said Clement Cheung Wan-ching, CEO of IA.
The Hongkong and Shanghai Hotels’ unit would also be the city’s first captive insurer to underwrite property damage and business interruption risks. The hotel group’s CEO, Benjamin Vuchot, said the move marked an important step in strengthening the company’s position as a leading luxury hospitality and lifestyle brand.
“It enhances our risk management capabilities and takes our company to the next level in supporting our long-term growth,” Vuchot said in a statement on Wednesday. “As a Hong Kong-based company with over 160 years of heritage, we are proud to contribute to the city’s development as a global risk management centre.”
This would be a good way for Hong Kong to develop as a risk management centre