Insurance Authority starts direct regulation of insurance intermediaries
23 September 2019
Starting from today (23 September 2019), the Insurance Authority (IA) will take over from the three Self-Regulatory Organisations (SROs)1 the responsibility for direct regulation of some 110,000 insurance intermediaries in Hong Kong.
Dr Moses Cheng, Chairman of the IA, officiated with heads of the three SROs and other industry stakeholders at a handover ceremony to commemorate this milestone in the development for the insurance industry in Hong Kong.
“I must express my deep gratitude to all our partners in the industry for their advice, support and understanding, which led to the successful launch of this new regulatory regime,” said Dr Cheng. “We firmly believe that an effective, independent and transparent regime is conducive to protection of policy holders and the healthy development of the insurance market.”
“There is still a substantial and sustainable role for SROs to play in our common mission to promote Hong Kong as a global risk management centre and a regional insurance hub. We look forward to working hand in hand with them to nurture young talent and promote better public understanding on the insurance industry,” he added.
Under the new regulatory regime, the IA has introduced changes in areas such as basic academic qualifications, annual Continuing Professional Development (CPD) training, codes of conduct, and minimum capital and net asset requirements for broker companies. The IA is also responsible for handling complaints related to the conduct of insurance intermediaries2, conducting investigation into alleged cases of non-compliance, and taking enforcement action in accordance with the law and established regulations, codes and guidelines.
The IA has produced Announcements in the Public Interest for television and radio broadcasts to publicise the new regulatory regime and will deliver educational messages through its website, leaflets and the IA Facebook page “Koi Sai Po Kam”.
Ends
Notes:
1The Insurance Agents Registration Board established under the Hong Kong Federation of Insurers, the Hong Kong Confederation of Insurance Brokers and the Professional Insurance Brokers Association
2According to the Memorandum of Understanding signed between IA and the Hong Kong Monetary Authority in July 2019, the latter is responsible for handling complaints related to banks acting as licensed insurance agencies.
Officiating guests at the handover ceremony: (from left) Mr Praveen Daswani, Chairman of the Hong Kong Federation of Insurers; Mr Gary Soo, Chairman of the Professional Insurance Brokers Association; Mr Clement Cheung, Chief Executive Officer of the IA; Dr Moses Cheng, Chairman of the IA; Mr Bhabani Sankar Rath, Chairman of the Hong Kong Confederation of Insurance Brokers; and Mr Stephen Po, Executive Director (Market Conduct) of the IA.