Insurance Authority backs proposals in Hong Kong

Insurance Authority backs proposals in Hong Kong | Insurance Business Asia

Insurance News

Insurance Authority backs proposals in Hong Kong

Public warning also issued on fraudulent website

Insurance News

By
Roxanne Libatique

The Hong Kong Insurance Authority (IA) has expressed support for the government’s recently released consultation conclusions and legislative proposals regarding the establishment of a company re-domiciliation regime.

IA chief executive officer Clement Cheung said the initiative reflects confidence in Hong Kong’s status as a global financial hub.

“The insurance sector has been calling for a regime that enables offshore companies with significant local presence to relocate their headquarters back to Hong Kong in a seamless manner. This is indeed a strong vote of confidence in our competitiveness as an international financial centre,” he said.

Benefits of proposed re- domiciliation regime in Hong Kong

Cheung highlighted that the proposed re-domiciliation regime would simplify administrative procedures, reduce legal expenses, and shorten the timeframe for offshore companies to complete the process without major disruptions to their operations.

“It will be cherished by insurance groups seeking to expand their regional footprints and capture opportunities available in the Guangdong-Hong Kong-Macao Greater Bay Area, while at the same time injecting impetus into developing the ‘headquarters economy’,” he said.

The IA said it intends to work closely with the government and industry participants to facilitate the prompt implementation of the re-domiciliation regime.

Hong Kong Insurance Authority warns about suspicious website

In other news related to the Hong Kong insurance industry, the IA issued a warning to the public about a dubious website, “https[:]//www[.]podenaz[.]com,” which features details about “Podenas Bank (Hong Kong).”

This entity is neither authorised as an insurer nor licensed as an insurance intermediary under the Insurance Ordinance (Cap. 41) to conduct insurance business or regulated activities in Hong Kong.

The IA advised the public to verify the legitimacy of any entity soliciting insurance business online.

Peter Gregoire, head of conduct supervision and general counsel at the IA, emphasised the importance of dealing only with licensed insurance intermediaries. He also warned that unlicensed insurance selling is punishable by fines and up to two years of imprisonment.

“The Insurance Authority has zero-tolerance for such pernicious activities which might place policyholders in jeopardy and risk undermining confidence in the insurance market,” he said.