Report outlines new rules reshaping Hong Kong insurance industry
Report outlines new rules reshaping Hong Kong insurance industry | Insurance Business Asia
Insurance News
Report outlines new rules reshaping Hong Kong insurance industry
Regulator announces market conduct division overhaul
Insurance News
By
Roxanne Libatique
The Hong Kong Insurance Authority (IA) has issued its latest Conduct in Focus, which includes significant updates for the insurance industry, such as new compliance regulations for brokers, the introduction of licensing fees, and refined standards for life insurance brokers, particularly in the context of referral business.
A major highlight in this issue is the IA’s new guidelines for insurance brokers that use referral models, especially those aimed at attracting Mainland China visitors (MCVs).
This development follows the expiration of a five-year waiver, which began when the regulator took on the regulatory role for insurance intermediaries in 2019.
The new fee structure, developed after industry consultation, is designed to cover the costs associated with the IA’s regulatory functions.
Peter Gregoire, IA’s general counsel and head of the Conduct Supervision Division, stated that the fees will support the regulator’s efforts in conducting inspections and overseeing the conduct of insurers and intermediaries.
“The fee levels cover the IA’s costs of regulating the insurance market, but do not go beyond this,” he said.
Additionally, the fees will fund improvements to the IA’s technology-driven licensing processes and support public education campaigns that aim to help consumers make informed insurance choices.
Other Conduct in Focus key topics
The latest issue of Conduct in Focus also covers several other key topics. These include:
best practices for general insurers when issuing renewal notices;
the importance of participating in the SMS Sender Registration Scheme to safeguard customers from fraudulent activities; and
the advantages of using insurers’ online self-service portals.
See LinkedIn post here.
Insurance Authority Market Conduct Division overhaul
In addition, the IA announced the reorganisation of its Market Conduct Division into two new divisions: the Conduct Supervision Division and the Enforcement Division, to emphasise both preventive measures and enforcement actions.
As the industry adapts to these new compliance requirements and the introduction of fees, the IA has offered assurances that it will collaborate closely with stakeholders to ensure a smooth transition.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
