Consultation conclusions on codes of conduct for licensed insurance agents and licensed insurance brokers
3 September 2019
The Insurance Authority (IA) today (3 September 2019) published the consultation conclusions in respect of two draft regulatory instruments – the Code of Conduct for Licensed Insurance Agents and the Code of Conduct for Licensed Insurance Brokers.
Respondents generally welcomed the two draft codes, which had taken full account of the different capacities of insurance agents (who represent insurers) and insurance brokers (who represent clients). Broad agreement was expressed on the eight General Principles of conduct with complementary Standards and Practices, as well as the requirements on corporate governance, internal controls and procedures for insurance agencies and broker companies. The two codes have been further refined after careful consideration of the feedback received.
The two codes will take effect immediately upon commencement of the new statutory regulatory regime for insurance intermediaries on 23 September 2019. In order to allow sufficient time for transition, the IA will adopt a flexible approach in considering insurance intermediaries’ compliance with the codes in the initial few months, and expects licensees to fully comply with the codes from 1 January 2020 onwards.