31 October 2018
The Insurance Authority (IA) today (31 October 2018) launched a two-month public consultation on the draft Insurance (Maximum Number of Authorized Insurers) Rules (the “Rules”), which stipulate a cap on the number of insurers by which a licensed individual insurance agent or insurance agency may be appointed under the new statutory licensing regime for insurance intermediaries. The regime is scheduled for implementation in mid-2019.
The draft Rules largely mirror the existing framework set out in the Code of Practice for the Administration of Insurance Agents issued by The Hong Kong Federation of Insurers. The IA proposes increasing the maximum number of insurers which a licensed individual insurance agent or insurance agency can represent from four to five, while keeping the existing sub-cap on the number of long term insurers (i.e. life insurers) at two. The IA further suggests that there should be no substantive change to the way the number of appointing insurers is counted.
The consultation paper is now available on the IA website. Members of the public are welcome to submit their comments to the IA on or before 31 December 2018 by email to [email protected], by fax to 3899-9993, or by post to the IA Office on 19/F, 41 Heung Yip Road, Wong Chuk Hang, Hong Kong.
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