Bermuda’s reputation as a favoured incorporation hub for major insurers may be facing new competition from Hong Kong, the South China Morning Post is reporting. The territory is aggressively courting international firms to redomicile there under a new law.

The legislation, which came into effect in May, eases the process for companies to move their legal domicile to Hong Kong while keeping their existing structure and contracts. Previously, firms needed to dissolve and start anew, an expensive and complex process, particularly for insurers.

Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, has been travelling globally to promote the regime, including a recent stop in Toronto, where he urged Bermudian-incorporated giants Manulife and Sun Life to make the switch, according to the SCMP.

His pitch seems to be working. Manulife said it would redomicile its international operations to Hong Kong in November, following a similar move by Axa’s local unit. Clement Lam, the chief executive of Sun Life Hong Kong, confirmed the company was considering the move and said that the new framework “will reinforce Hong Kong’s position as a global business and financial hub".

With Bermudian-based firms such as AIA, Axa, Manulife, Sun Life and FWD in the mix, Hong Kong hopes the trend will boost jobs and strengthen its standing as an international financial centre.

The shift comes as global tax changes might make Bermuda and other traditional international jurisdictions less appealing. Deloitte China’s Anthony Lau said that now, due to Bermuda’s corporate income tax on companies with annual revenue of €750 million (about $882 million) or more, firms now face possible double taxation and harsher disclosure requirements.

“It makes sense for them to redomicile in Hong Kong to save costs,” he told the SCMP.