XN000022-1984-06-14 — Page 10

THURSDAY, JUNE 14, 1934

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265 INSURANCE FIRMS APPROVED UNDER NEW LAW

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UNDER THE NEW INSURANCE LEGISLATION, 262 EXISTING COMPANIES HAVE OBTAINED AUTHORISATION TO CARRY ON THEIR BUSINESS AND 45 OTHERS HAVE WITHDRAWN, THE REGISTRAR GENERAL, MR NOEL GLEESON, SAID TODAY (THURSDAY).

THE WITHDRAWN COMPANIES WERE REQUIRED NOT TO UNDERWRITE ANY NEW POLICIES OR RENEW ANY EXISTING POLICIES, BUT HAD TO MEET ALL THEIR CLAIMS OR OBLIGATIONS UNDER THE POLICIES ALREADY ISSUED BY THEM.

THE 307 COMPANIES IN EXISTENCE AT THE START OF THE INSURANCE COMPANIES ORDINANCE 1983, WERE ALL REQUIRED TO GO THROUGH THE AUTHORISATION PROCESS WITHIN ONE YEAR, MR GLEESON EXPLAINED.

+AND THE WHOLE PROCESS HAS BEEN COMPLETED WITHIN 10.5 MONTHS, HE SAID.

UNDER THE NEW LEGISLATION, 13 NEW INSURERS HAVE BEEN ADMITTED, RAISING THE NUMBER OF AUTHORISED INSURANCE COMPANIES IN HONG KONG TO 275.

A REGISTER OF AUTHORISED INSURERS IS KEPT IN THE OFFICE OF THE INSURANCE AUTHORITY AT ROOM 1405, WING ON CENTRE, 111 CONNAUGHT ROAD, CENTRAL.

FOR A SMALL FEE, THE PUBLIC MAY INSPECT THE REGISTER TO FIND OUT THEIR NAMES AND THE CLASSES OF INSURANCE BUSINESS THEY ARE AUTHORISED TO TRANSACT.

TRACING DEVELOPMENTS OVER THE PAST YEAR, MR GLEESON SAID AN INSURANCE DIVISION HAD BEEN ESTABLISHED WITHIN THE REGISTRAR GENERAL'S DEPARTMENT TO GIVE EFFECT TO THE PROVISIONS OF THE NEW ORDINANCE.

THE DIVISION HAS A STAFF ESTABLISHMENT OF 26, HEADED BY AN INSURANCE OFFICER, A POST AT SENIOR DIRECTORATE LÉVEL.

THIS POST HAS NOW BEEN TAKEN UP BY MR DEREK SULLIVAN, WHO HAS EXTENSIVE EXPERIENCE IN BOTH LIFE AND GENERAL INSURANCE BUSINESS OF THE UK MARKET.

LEGAL ADVICE FOR THE NEW DIVISION IS PROVIDED BY THE DEPARTMENT'S IN-HOUSE LAWYERS.

THE MAIN ROLE OF THE DIVISION IS TO AUTHORISE AND MONITOR INSURERS CARRYING ON ALL TYPES OF INSURANCE BUSINESS IN OR FROM HONG KONG, UNDER THE OVERALL SUPERVISION OF THE REGISTRAR GENERAL, WHO HAS BEEN APPOINTED INSURANCE AUTHORITY FOR THE PURPOSES OF THE ORDINANCE.

MR GLEESON POINTED OUT THAT UNDER THE ORDINANCE, INSURANCE COMPANIES MUST COMPLY WITH NEW ACCOUNTING AND AUDITING REQUIREMENTS FOR THEIR ACCOUNTING PERIODS COMMENCING AFTER JUNE 30, 1983.

A GUIDELINE ON THESE REQUIREMENTS HAS BEEN PREPARED BY THE HONG KONG SOCIETY OF ACCOUNTANTS FOLLOWING DISCUSSIONS WITH THE INSURANCE AUTHORITY AND WILL BE ISSUED TO THE SOCIETY'S MEMBERS SHORTLY.

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