XN000022-1989-03-07 — Page 7

TUESDAY, MARCH 7, 1989

ΤΟ AUTHORITY "THE ORDINANCE REQUIRES THE INSURANCE AND MONITOR THE ACTIVITIES OF INSURANCE COMPANIES

GRANTS

HIM POWERS ΤΟ POLICYHOLDERS.

INTERVENE

TO PROTECT

AUTHORISE IN HONG KONG AND THE INTERESTS OF

"THE THRUST OF SUPERVISION IS ON THE OVERALL OF INSURERS," HE SAID.

FINANCIAL HEALTH

MR NENDICK SAID THE ORDINANCE WAS WAS AMENDED FROM TIME TO TIME.

UNDER

CONSTANT REVIEW AND

INTRODUCED INTO THE OF THE ORDINANCE,

+

"AN AMENDMENT BILL HAS RECENTLY BEEN LEGISLATIVE COUNCIL TO UPDATE VARIOUS PROVISIONS HE SAID.

MR NENDICK SAID THE GOVERNMENT WAS ALSO

PRESENT EXAMINING

THE WITH

INSURANCE INDUSTRY WAYS ΤΟ IMPROVE CONTROL OVER THE ACTIVITIES OF INSURANCE INTERMEDIARIES, THAT IS AGENTS AND BROKERS.

"THE SYSTEM OF CONTROL WE HAVE IN MIND IS LARGELY ONE OF SELF-REGULATION WITHIN A FRAMEWORK OF SUPPORTIVE LEGISLATION.

"AGENTS WILL BE RESPONSIBLE TO AN INSURER OR GROUP OF INSURERS AND BROKERS WILL BE RESPONSIBLE TO THEIR SELF-REGULATORY ORGANISATIONS.

"THE LAW WILL DISTINGUISH BETWEEN AGENTS AND BROKERS AND WILL LAY DOWN MINIMUM REQUIREMENTS," HE SAID.

MR NENDICK SAID THE GOVERNMENT WAS QUESTION OF INSURANCE CONTRACT LAW WHICH SOME HEAVILY WEIGHTED IN FAVOUR OF THE INSURERS.

WE

ALSO LOOKING AT THE MIGHT REGARD AS TOO

VIEW ARE

THAT THE BEST WORKING TOWARDS

"WE ACCEPT IN PRINCIPLE THE INDUSTRY'S SOLUTION LIES IN EFFECTIVE SELF-REGULATION. THIS END WITH THE INDUSTRY AND INTEND То HAVE IN PLACE WORKABLE PROPOSALS BY THE END OF THIS YEAR," HE SAID.

"WE HOPE THAT THE VARIOUS INITIATIVES NOW IN TRAIN WILL SERVE THE BENEFIT OF TO PROMOTE THE HEALTHY DEVELOPMENT OF THE MARKET FOR THE INSURING PUBLIC," HE ADDED.

MR NENDICK SAID THERE WAS A STRONG THE INSURANCE INDUSTRY IN HONG KONG.

INTERNATIONAL

PRESENCE IN

"OF THE 275 AUTHORISED INSURERS IN HONG KONG, 148 (OR OVER 50 PER CENT) ARE INCORPORATED OVERSEAS.

"HONG KONG IS ALSO BECOMING AN IMPORTANT BASE FOR REINSURANCE OPERATIONS IN THE ASIA-PACIFIC REGION, HE SAID.

"

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