Insurance Authority appoints managers to oversee Tahoe Life

Insurance Authority appoints managers to oversee Tahoe Life | Insurance Business Asia

Life & Health

Insurance Authority appoints managers to oversee Tahoe Life

Supervisory measures implemented amid insurer’s financial concerns

Life & Health

By
Roxanne Libatique

The Hong Kong Insurance Authority (IA) has exercised its authority under Section 35(2)(b) of the Insurance Ordinance (Cap. 41) to appoint Derek Lai and Forrest Kam of Deloitte Touche Tohmatsu, along with Oliver Cheng of Deloitte Advisory (Hong Kong) Ltd, as joint and several managers to manage Tahoe Life Insurance Company Limited (Tahoe Life).

A spokesperson for the IA confirmed that the regulator has implemented several supervisory measures on the insurer since mid-2020 to safeguard policyholders.

“The IA has applied a series of supervisory interventions on Tahoe Life since mid-2020 to protect policyholders, while urging its management team and majority shareholders to identify a viable solution to resolve the issues arising from investments linked with related party transactions,” the spokesperson said.

Tahoe Life failed to submit audited financial statements

The IA spokesperson explained that Tahoe Life has failed to submit audited financial statements for 2022 and 2023, despite the appointment of Advisors1 under Section 35(2)(a) of the IO in August 2023 to offer Tahoe Life guidance and recommendations.

The insurer has also failed to fulfil its commitments to secure new strategic investors and enhance corporate governance.

“Given that its majority shareholders are embroiled in multiple debt proceedings, appointment of the managers is necessary to ascertain the latest financial and solvency position, preserve capital resources, and identify optimal recovery solutions in the best interest of policyholders,” the spokesperson said.

The IA’s previous ring-fencing measures have strengthened Tahoe Life’s capacity to meet its insurance commitments.

The IA advises policyholders to carefully consider their personal situations before making decisions, as life insurance products are designed for long-term maturity.

Managers’ responsibility regarding Tahoe Life

The IA said the managers will ensure that all policies issued by Tahoe Life remain unaffected, maintaining comprehensive business operations including customer service, premium payments, and claims processing.

Policyholders with inquiries can contact the managers by phone at 2238 7006 during office hours (Monday to Friday, excluding public holidays) from 9am to 12pm and from 2pm to 5:45pm, or via email at [email protected].

These accounts, named “Congratulation Winner,” have been issuing false winning notifications and directing users to fraudulent websites such as “https[:]//hsbc[.]myfreesites[.]net,” “https[:]//hsbc1[.]myfreesites[.]net,” and “https[:]//twisted-canvas-tattoo34[.]myfreesites[.]net.”

The IA noted that these sites falsely claim an association with the Hongkong and Shanghai Banking Corporation Limited (HSBC) to illicitly obtain personal information.

HSBC has confirmed that it has no connection with these Facebook accounts or websites.

The IA has reported this issue to the Hong Kong Police Force for further investigation. Individuals who have shared personal information via these links are advised to contact HSBC at (852) 2233-3000 and report the incident to the police.