MONDAY, OCTOBER 17, 1988

7 -

MORE CONSUMER PROTECTION SHOULD BE PROVIDED

IN INSURANCE INDUSTRY

REGULATED

AN

THE ACTIVITIES OF INSURANCE INTERMEDIARIES SHOULD BE

CONSUMER PROTECTION IN WHAT IS TO PROVIDE A GREATER DEGREE OF

ECONOMIC OF

THE ACTIVITY, IMPORTANT AREA

SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID THIS (MONDAY) EVENING.

DINNER OF THE HONG KONG ADDRESSING THE ANNUAL

SOCIETY OF POINTED OUT THAT THE GOVERNMENT INSURANCE BROKERS LTD, MR NENDICK BELIEVED THAT SELF-REGULATION BY THE INSURANCE INDUSTRY WOULD BE BEST WAY OF ACHIEVING THIS.

FORWARD BY THE "IT IS OUR BELIEF THAT THE PROPOSALS PUT

COMMISSION PROVIDE A SOUND BASIS REFORM

FOR THE REGULATION

|| HE INSURANCE INTERMEDIARIES,

SAID,

RECALLING THAT PRODUCED IN JANUARY 1986 A REPORT ON THE LAWS ON INSURANCE.

AREAS

THE

LAW

OF

THE COMMISSION

REPORT EXAMINED TWO THE

PERCEIVED OF CONCERN:

THE INSURED AND THE INEQUALITIES IN INSURANCE CONTRACT LAW BETWEEN

OF INSURANCE INSURER; AND THE ABSENCE OF CONTROL OVER THE ACTIVITIES INTERMEDIARIES.

"THE

COMMISSION

RECOMMENDED,

AMONG OTHER

THINGS,

THAT

LEGISLATION BE INTRODUCED TO CONTROL THE ACTIVITIES OF INTERMEDIARIES.

**THE

UNDERLYING

WAS

THAT BETWEEN

PRINCIPLE INSURANCE THE

RECOMMENDATIONS

COMMISSION'S ABLE

ΤΟ GIVING PARTICULAR

THE BEHIND CONSUMERS SHOULD BE

DISTINGUISH CLEARLY

INDEPENDENT INTERMEDIARY IMPARTIAL PROFESSIONAL ADVICE AND THE AGENT REPRESENTING A INSURANCE COMPANY.

THAT INDEPENDENT

WITH

"TO ACHIEVE THIS, THE COMMISSION RECOMMENDED INTERMEDIARIES BE

OF REQUIRED ΤΟ MEET SPECIFIED STANDARDS

BE REQUIRED TO ASSUME GREATER PROFESSIONAL CONDUCT; THAT INSURERS

OF THE

REPRESENTATIVES

WHOM ACTIVITIES RESPONSIBILITY FOR

AND THAT THE INSURANCE CONSUMER WERE CLOSELY THEY

WAS BEING ADVISED," BE PLACED IN A POSITION TO KNOW ON WHAT BASIS HE HE SAID.

IDENTIFIED;

ΤΟ THE RECOMMENDATIONS 1N

WORKING GROUP IN MARCH

ΤΟ INDUSTRY

FORMULATE PROPOSALS

MR NENDICK NOTED THAT IN RESPONSE THE REPORT, THE INSURANCE INDUSTRY SET UP A 1987 DRAWN FROM ALL SECTORS OF THE FOR SELF-REGULATION.

**IN MARCH THIS YEAR, THE WORKING GROUP SUBMITTED ITS ON SELF-REGULATION TO THE GOVERNMENT," HE SAID.

STATEMENT

/HE POINTED

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