XN000022-1989-04-17 — Page 7

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MONDAY, APRIL 17, 1989

IN ANNOUNCING THE ABOVE

FIGURES,

MR GLEESON ATTRIBUTED THE STABLE NUMBER OF AUTHORISED INSURERS то THE GENERALLY EFFECTIVE LEGISLATIVE FRAMEWORK REGULATING INSURANCE COMPANIES IN HONG KONG.

NEW INSURERS WISHING TO OBTAIN AUTHORISATION MUST SATISFY THE INSURANCE AUTHORITY THAT THEY MEET THE NECESSARY CRITERIA FOR AUTHORISATION BEFORE THEY CAN BE ADMITTED.

EXISTING INSURERS WHICH HAD CEASED то CARRY ON INSURANCE BUSINESS WERE GENERALLY NOT ALLOWED TO RETAIN THEIR AUTHORISATION AFTER THEY HAD RUN OFF THEIR OUTSTANDING CLAIMS.

MR GLEESON SAID INTEREST ΤΟ ENTER THE HONG KONG INSURANCE MARKET REMAINED KEEN, ESPECIALLY FROM INSURERS COMING FROM ABROAD.

DURING THE FINANCIAL YEAR 1988-89, 10 NEW APPLICATIONS FOR AUTHORISATION WERE RECEIVED, EIGHT OF WHICH WERE FROM OVERSEAS INSURERS.

AS AT MARCH 31 THIS YEAR, THERE WERE EIGHT PENDING APPLICATIONS FOR AUTHORISATION, FIVE OF WHICH WERE FROM OVERSEAS COMPANIES AND THREE FROM HONG KONG.

THIS DEMONSTRATED THE HONG KONG INSURANCE MARKET'S STRONG POTENTIAL FOR FURTHER DEVELOPMENT AND THE CONTINUED CONFIDENCE OF BOTH LOCAL AND OVERSEAS INSURERS IN HONG KONG'S FUTURE AND ITS CONTINUING ATTRACTION AS AN INSURANCE CENTRE.

MR GLEESON ALSO SAID THAT DURING THE YEAR HE HAD EXERCISED POWER OF INTERVENTION

RESPECT OF 18 INSURERS.

HIS

AS INSURANCE AUTHORITY ON 56 OCCASIONS IN

HE ADDED THAT HE HAD

TAKEN INTERVENTIONAL ACTION AGAINST A TOTAL OF 69 INSURERS SINCE THE COMMENCEMENT OF THE INSURANCE COMPANIES ORDINANCE IN JUNE 1983.

THE INTERVENTIONAL ACTION HE HAD TAKEN HAD GENERALLY SERVED THE PURPOSE OF PROTECTING THE INTERESTS OF POLICY HOLDERS AND POTENTIAL POLICY HOLDERS.

MR GLEESON WENT ON TO SAY THAT AMENDING LEGISLATION TO ENHANCE THE PROTECTION FOR POLICY HOLDERS AND POTENTIAL POLICY HOLDERS HAD BEEN ENACTED DURING THE YEAR.

THE FIRST AMENDMENT, WHICH WAS MADE TO SECTION 265 OF THE COMPANIES ORDINANCE BY THE COMPANIES ( AMENDMENT) (NO. 3) ORDINANCE NO. 7 OF 1988 ENACTED IN DECEMBER 1988, EXTENDED PREFERENCE TO CLAIMS UNDER CONTRACTS OF INSURANCE OVER ORDINARY CLAIMS OF AN INSURANCE COMPANY.

IN THE

THE SECOND AMENDMENT WAS INTRODUCED BY THE INSURANCE ( AMENDMENT) ORDINANCE NO.8 OF 1989, ENACTED IN MARCH, EFFECT OF THIS AMENDMENT ORDINANCE WAS THAT:-

WINDING-UP

COMPANIES

THE

1989.

A) THE