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WEDNESDAY, NOVEMBER 6, 1991
TO THIS END, THE INSURANCE COMPANIES (AMENDMENT) BILL 1991, THE MAIN PURPOSE OF WHICH WAS TO EXTEND THE GROUNDS ON WHICH THE INSURANCE AUTHORITY MIGHT TAKE INTERVENTIONARY ACTION IN THE INTERESTS OF THE INSURING PUBLIC, WOULD BE INTRODUCED INTO THE LEGISLATIVE COUNCIL NEXT WEEK.
THERE WOULD ALSO BE PROVISIONS ENABLING THE INSURANCE AUTHORITY TO STRENGTHEN ITS SUPERVISION OVER PROBLEM INSURERS, AND GIVING AUDITORS AND ACTUARIES A GREATER ROLE IN THE REPORTING OF SUSPECTED FRAUD, HE ADDED.
MR NENDICK SAID THE LACK OF ANY REGULATION OF INSURANCE AGENTS AND BROKERS HAD BEEN AN AREA OF CONCERN.
**WE FULLY ACCEPT THAT THIS IS UNSATISFACTORY AND THAT STEPS MUST BE TAKEN TO REMEDY THE SITUATION.
"BOTH THE ADMINISTRATION AND THE INDUSTRY BELIEVE THAT THE ANSWER LIES IN A SYSTEM OF SELF-REGULATION WITHIN A FRAMEWORK OF SUPPORTIVE LEGISLATION.
"WORKING GROUPS HAVE BEEN FORMED BY THE INDUSTRY TO DRAW UP PROPOSALS AND THERE HAS BEEN USEFUL DIALOGUE WITH THE INSURANCE AUTHORITY.
FORMULATED TO
"IN PARALLEL, LEGISLATIVE PROPOSALS ARE BEING INCREASE THE RESPONSIBILITY OF INSURERS FOR THE ACTIONS OF THEIR AGENTS AND ΤΟ ENHANCE THE TRANSPARENCY OF THE PRINCIPAL/AGENT RELATIONSHIP," HE SAID.
FINALLY, VR NENDICK NOTED THAT THE NEED FOR PRUDENTIAL REGULATION OF PRIVATE RETIREMENT SCHEMES TO ENSURE THAT RETIREMENT BENEFITS WERE PAID WHEN THEY FELL DUE HAD RECEIVED WIDE PUBLIC SUPPORT.
THE SECRETARY SAID THE OCCUPATIONAL RETIREMENT SCHEMES BILL WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL IN MAY.
"THERE WAS GENERAL SUPPORT FOR THE PRINCIPLES ENSHRINED IN THE BILL FROM MARKET AND PROFESSIONAL BODIES," HE SAID.
"THE LEGCO AD HOC GROUP WHICH STUDIED THE FOR REGULATION ON THESE LINES BUT EXPRESSED COMPLEXITY OF THE BILL.
NEED
BILL ENDORSED THE CONCERN OVER THE
"GIVEN THE LIMITED TIME AVAILABLE FOR ITS SCRUTINY, IT WAS AGREED THAT THE ADMINISTRATION WOULD RESTRUCTURE AND SIMPLIFY THE BILL BEFORE RE-PRESENTING IT TO THE COUNCIL IN THE CURRENT SESSION.
MR NENDICK SAID THE AUTHORITIES WERE IN THE COURSE OF REDRAFTING THE BILL IN CLOSE CONSULTATION WITH THE MARKET AND CONCERNED PROFESSIONAL BODIES AND THAT THE REVISED BILL WOULD RETAIN ALL THE BASIC PRINCIPLES.
/THEY WERE