Insurance Authority establishes Disciplinary Panel Pool as a key part of its disciplinary mechanism for the insurance industry
30 October 2020
The Insurance Authority (IA) announced today (30 October 2020) the formation of the Disciplinary Panel Pool (DPP) as part of its new disciplinary mechanism for licensed insurance intermediaries and authorized insurers.
The IA is empowered under the Insurance Ordinance (Cap. 41) to take disciplinary actions against authorized insurers and licensed insurance intermediaries. The new DPP will serve as an integral part of the IA’s disciplinary process, with disciplinary decisions being taken by panels formed by persons drawn from the DPP.
The DPP is composed of IA Board members and other experienced professionals from the legal, financial and other sectors. Members include a former High Court judge, eminent barristers and solicitors and experts from the insurance and other industries all of whom have a demonstrated track record of disciplinary or related work. Members of the DPP are appointed by the IA for a renewable term of three years from October 2020 to September 2023. The membership list of the DPP is available on the IA website.
“In developing the disciplinary mechanism under the new direct regulatory regime for insurance intermediaries1, our aim has been to implement a process that is fair, efficient and robust,” said Mr Peter Gregoire, Head of Market Conduct (Acting) of the IA. “The DPP constitutes an integral part of this and will play a vital role in reinforcing the foundation of trust that must exist between the insurance industry and the policy holders it serves. We thank the members of the DPP for their participation and service to the Hong Kong community in taking on this role and look forward to working with them.”
The IA today also published the inaugural issue of Conduct In Focus, a periodical newsletter which presents statistics and commentary on complaints received by the IA and examines topical regulatory issues relating to conduct in the insurance market. This issue looks at the topic of complaints arising from the handling of premium by insurance agents, provides a broad overview of the IA’s approach to enforcement, and examines how the general principles of good conduct on which the new regulatory regime is based must be embedded into the culture and governance of companies operating in the insurance market to ensure ethical business practices.
1On 23 September 2019, the IA became the sole regulator of Hong Kong’s insurance industry and started direct regulation of all licensed insurance intermediaries in Hong Kong in relation to licensing, inspection, investigation and disciplinary sanctions.