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Friday, March 2, 1973
""The proposed British Act will give stronger and more flexible powers
to the Secretary of State for Trade and Industry to control the operations
of insurance companies. It includes special provisions to improve the
security of long term policy holders. More frequent financial statements are
required from insurance companies. The Secretary of State's powers of
intervention are to be extended, and he is to have power to vary the existing
statutory minima of initial share capital and free reserves and the general
business solvency margin and he is to be empowered to make rules regarding
j the valuation of assets and liabilities.
Insurance Legislation
"NOW,
as you are aware I made an announcement recently in the
Legislative Council to the effect that the Government is presently undertaking
a comprehensive review of our existing insurance legislation and I would like to
give you some indication of our thinking.
"Whilst the Government seeks to protect policy holders it does, at
the same time, wish to leave the insurance industry as free as possible from
constraints. Events of recent years in Britain have shown that the existing
controle provide insufficient protection in some cases. The problem is to devise
a way of avoiding these dangers without harming the activities of the vast
majority of companies whose activities are beyond question. I think in Hong
Kong we should attempt to work towards either a single ordinance, or a co-ordinated
body of legislation, which would enshrine general principles for the industry
as a whole. Since we do not have legislation covering certain branches of
insurance business
-
it
such as accident insurance, general liability insurance and
property insurance (apart from the Fire Insurance Companies Ordinance)
would seen proper for these areas of activity to be covered. Finally, the
/penalties
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