XN000022-1988-04-19 — Page 13

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TUESDAY, APRIL 19, 1988

MR GLEESON COMMENTED THAT THE NUMBER OF HAD REMAINED AT ABOUT THE 280 LEVEL SINCE THE INSURANCE COMPANIES ORDINANCE ON JUNE 30, 1983.

THIS COULD BE ATTRIBUTED TO TWO FACTORS.

AUTHORISED INSURERS COMMENCEMENT OF THE

FIRSTLY, THERE WERE THE MORE STRINGENT CRITERIA APPLIED BY THE INSURANCE AUTHORITY IN DETERMINING APPLICATIONS FOR AUTHORISATION UNDER THE ORDINANCE TO ENSURE THAT ONLY INSURERS OF GOOD FINANCIAL STANDING AND WHO WERE ABLE TO MEET THE CRITERIA OF THE AUTHORISATION GUIDELINES WERE ADMITTED.

SECONDLY, THERE WAS THE CONTINUAL REVIEW MADE BY THE INSURANCE AUTHORITY OF THE AUTHORISATION STATUS OF EXISTING INSURERS WITH A VIEW TO WITHDRAWING THOSE AUTHORISATIONS THAT HAD BECOME DORMANT.

HE ENVISAGED THAT THE NUMBER OF AUTHORISED INSURERS WOULD REMAIN STABLE IN THE FORESEEABLE FUTURE.

AS AT MARCH

31.

THERE WERE NINE PENDING APPLICATIONS FOR AUTHORISATION FROM NEW INSURERS, SIX OF WHICH WERE FROM OVERSEAS COMPANIES AND THREE FROM HONG KONG.

THIS AGAIN DEMONSTRATED THE KEEN INTEREST OF OVERSEAS INSURERS IN ENTERING THE HONG KONG INSURANCE MARKET AND THEIR CONTINUED CONFIDENCE IN HONG KONG'S FUTURE AND ITS GROWING IMPORTANCE AS AN INSURANCE CENTRE.

MR GLEESON ALSO SAID THAT DURING THE FINANCIAL YEAR HE HAD EXERCISED HIS POWER OF INTERVENTION AS INSURANCE AUTHORITY ON 33 OCCASIONS IN RESPECT OF 18 INSURERS FOR THE BETTER PROTECTION OF POLICYHOLDERS.

HE ADDED THAT HE HAD TAKEN INTERVENTIONAL ACTION AGAINST A TOTAL OF 61 INSURERS SINCE THE COMMENCEMENT OF THE ORDINANCE IN JUNE 1983.

INCLUDING THE PETITION FOR THE WINDING-UP OF FIVE INSURANCE COMPANIES BETWEEN 1983 AND 1987.

ORDINANCE, MR GLEESON

COMMENTING ON THE EFFECTIVENESS OF THE SAID THAT THE LEGISLATIVE FRAMEWORK IT PROVIDES FOR THE REGULATION OF INSURANCE COMPANIES CARRYING ON BUSINESS IN HONG KONG HAD BEEN GENERALLY EFFECTIVE.

NEVERTHELESS, THE INSURANCE

AUTHORITY, IN CONSULTATION WITH THE INSURANCE ADVISORY COMMITTEE AND THE INSURANCE INDUSTRY, CONTINUALLY REVIEWED THE ORDINANCE TO SEE IF LEGISLATIVE CHANGES WERE NEEDED FOR THE BETTER PROTECTION OF POLICYHOLDERS OR THE IMPROVED APPLICATION OF THE ORDINANCE.

BETWEEN 1985 THE INSURANCE

A NUMBER OF AMENDMENTS HAD AS A RESULT BEEN MADE AND 1987, THE MOST RECENT BEING ONE WHICH GAVE AUTHORITY WIDER DISCRETIONARY POWER ΤΟ REFUSE APPLICATIONS FOR AUTHORISATION.

/ANOTHER CHANGE