4
Financial and Monetary Affairs
Total gross premiums
205
233.7
255.2*
Of which:
Long-term in-force business (Office / Revenue premiums)
173.9A
198.9A
215.9*#
31.1
34.8
39.3*
General insurance (Gross premiums)
* Provisional statistics
^ Office premiums
# Revenue premiums
Insurance Authority
Appointed by the Chief Executive as the Insurance Authority (IA) under the Insurance Companies Ordinance, the Commissioner of Insurance's principal function is to regulate and supervise the insurance industry to promote its general stability and protect policyholders".
As a member of the International Association of Insurance Supervisors (IAIS), Hong Kong endeavours to ensure that its supervisory regime is in line with prevailing international principles and standards. The Government's Insurance Advisory Committee advises the Chief Executive on matters relating to the administration of the Insurance Companies Ordinance and the carrying on of insurance business in Hong Kong.
Recent Developments
The IA continues to collaborate with the Hong Kong Federation of Insurers in improving the regulation of the sale of Investment Linked Assurance Scheme (ILAS) products to strengthen investor protection. In addition to the enhanced measures launched previously, the IA plans, among other measures to introduce new disclosure requirements to increase the transparency of ILAS products and extend post-sale telephone confirmation calls (audio-recorded) to cover all ILAS customers.
As a member of the IAIS, the IA participates in the development of international standards in insurance supervision. In response to the financial crisis and its impact on the global insurance industry, in 2011 the IAIS revamped international standards to strengthen insurance supervision, with particular emphasis on improving group and cross sectoral supervision. The IA is examining the new standards and their application in Hong Kong, taking local circumstances into account.
11
The Insurance Companies Ordinance prescribes a regulatory framework for all classes of insurance business to ensure the financial stability of all insurers authorised in Hong Kong and the fitness and propriety of their management. The IA may take appropriate actions under the ordinance against an insurer to safeguard the interests of policyholders. The ordinance also sets out the self-regulatory framework for insurance intermediaries. The self-regulatory organisations include the Insurance Agents Registration Board under the Hong Kong Federation of Insurers, the Hong Kong Confederation of Insurance Brokers and the Professional Insurance Brokers Association.
With effect from 1 November 2012, the IA has the statutory role of monitoring the compliance of registered Mandatory Provident Fund intermediaries with the conduct requirements stipulated in the Mandatory Provident Fund Schemes Ordinance.
76