Insurance Authority designates three insurance holding companies under the group-wide supervision framework

14 May 2021

The Insurance Authority (IA), by notice published in the Gazette today (14 May 2021) in accordance with the Insurance Ordinance (Cap. 41) (Ordinance), designated three insurance holding companies, namely AIA Group Limited, FWD Management Holdings Limited, and Prudential Corporation Asia Limited, to be subject to the group-wide supervision (GWS) by the IA.

Under the GWS framework, the IA, as the group supervisor appointed to regulate and supervise an insurance group, has direct regulatory powers over the designated insurance holding company (DIHC). Through the control and influence that the DIHC may exercise over the respective insurance group, the IA can carry out effective GWS over the insurance group.

Commencing on 29 March 2021, the GWS framework aligns Hong Kong's insurance regulatory regime with international standards and practices. The IA has issued the Guideline on Group Supervision (GL32), which spells out principles and standards for DIHCs on a wide range of areas including enterprise risk management, corporate governance, capital requirements and public disclosure, to facilitate the supervision of insurance groups and the enforcement of the relevant provisions in the Ordinance by the IA.

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