2 July 2025
The Insurance Authority (IA) issued a public reprimand on the Century Investment Planning Limited for failing to keep client monies separately from its own account and fined another broker company $12,000 for not procuring adequate professional indemnity insurance.
The Century Investment Planning Limited, a former licensed insurance broker company, failed to deposit client monies into a separate account on multiple occasions, misused the funds involved and did not settle premiums payable to an insurer in time. These actions contravened the relevant guideline under the former self-regulatory regime1 and the Insurance (Financial and Other Requirements for Licensed Insurance Broker Companies) Rules (Cap. 41L). The second case concerns a broker company miscalculating the professional indemnity insurance required under the former self-regulatory regime2 that resulted in a shortfall of coverage amounting to $11.8 million. No detrimental effect was caused to policy holders, and the two broker companies rendered full cooperation during the disciplinary process.
Keeping client monies in a separate account and procurement of adequate professional indemnity insurance are essential regulatory requirements for the protection of policy holders. Insurance intermediaries which come short of strictly complying with these requirements can expect to face proportionate disciplinary actions.
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Notes:
1 The incident took place from April 2019 to March 2020.
2 The incident took place in 2019.