Guideline on Special Purpose Insurer Authorization

The Guideline on Special Purpose Insurer Authorization provides guidance on how the Insurance Authority intends to exercise its discretion to authorize special purpose insurers and to assess compliance with statutory requirements under the Insurance Ordinance for special purpose insurers.

Financial Resources

Special purpose insurers are not expected to meet capital and solvency requirements applicable to other insurers. Instead, special purpose insurers are expected to be "fully funded". This means that a special purpose insurer must hold assets the value of which are sufficient to meet all its liabilities to a cedant, whether actual or potential, under a reinsurance contract at any time and under all reasonably foreseeable circumstances.