A: Because insurance purchased in Hong Kong is protected by Hong Kong laws, Hong Kong's legal system is self-contained and belongs to the common law system, while the mainland's legal system belongs to the continental law system, which is completely different. Therefore, the tax avoidance function of Hong Kong insurance is protected by Hong Kong laws, which is safer and more effective than domestic insurance.

2. Are Hong Kong insurance companies at risk of bankruptcy?

A: Regarding life insurance, the Hong Kong government has very strict supervision over the insurance industry in Hong Kong. Every time a copy is sold, the Hong Kong Office of the Commissioner of Insurance will require Hong Kong insurance companies to leave most of the valuable assets of the policy in Hong Kong to better protect the interests of the policyholders. If a life insurance company in Hong Kong is on the verge of crisis due to poor management, the Hong Kong government will immediately intervene to allow insurance companies with financial strength to merge with the insurance company to protect life insurance policies sold in Hong Kong from losses. The Hong Kong government is also setting up the Hong Kong Life Insurance Reinsurance Fund to guarantee every life insurance policy sold in Hong Kong.