Insurance Authority appoints Managers to take control of Target Insurance Company Limited in order to maintain market stability and protect policy holders’ interests
7 January 2022
The Insurance Authority (IA) today (7 January 2022) invoked powers under Section 35(2)(b) of the Insurance Ordinance (Cap.41) to appoint Mr Derek Lai and Mr Forrest Kam of Deloitte Touche Tohmatsu as the Joint and Several Managers (the Managers) to take full control of the affairs and property of Target Insurance Company Limited (Target) in order to maintain market stability and protect policy holders’ interests.
A spokesperson for the IA said, “In view of the persistently unsatisfactory functioning and solvency position of Target, the IA has earlier imposed a series of additional regulatory requirements, including requiring the company to place a statutory deposit under the name of the IA and restricting the use and allocation of its assets.”
“Through the performance of supervisory work and collecting market intelligence, the IA discovered that the investment activities and asset allocation of Target might have breached statutory requirements under the Insurance Ordinance (Cap. 41), and there are serious deficiencies in its corporate governance. The IA thus decided to exercise its power to appoint Managers to take control of the affairs and assets of the company to ensure its normal operation for maintaining market stability and protecting the interests of policy holders. The Managers will also conduct a detailed assessment on the financial position of Target and report findings to the IA.”
“Almost 80% of the business carried on by Target is motor insurance while the rest is mainly employees’ compensation insurance, with about 10,000 taxis involved. The businesses in total account for 1.43% of the direct general insurance business. The protection terms of existing policies will not be affected by this takeover operation.” The spokesperson added.
The policy holders of Target may contact the Managers at 2238-7826 during office hours (Mondays to Fridays, excluding public holidays) from 9am to 12noon and 2pm to 6pm or via [email protected]/ [email protected] for any enquiries relating to their policies or claims.