XN000022-1991-04-30 — Page 2

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TUESDAY, APRIL 30, 1991

GOVT ENCOURAGES SELF-REGULATION BY INSURANCE INDUSTRY

INSURANCE

THE GOVERNMENT HAS ENCOURAGED SELF-REGULATION BY THE

THE SECRETARY FOR INDUSTRY IN ADDITION TO DIRECT SUPERVISION OF IT, MONETARY AFFAIRS, MR DAVID NENDICK, SAID TODAY (TUESDAY).

MR

THE

NORTH POINT, INSURANCE

AND

SPEAKING AT THE OPENING OF THE MANULIFE TOWER IN

SAID

FOR ENCOURAGING SELF-REGULATION NENDICK INDUSTRY WAS THE RIGHT APPROACH AND IT HAD PROVED BOTH SUCCESSFUL COST EFFECTIVE.

AND

THE

ADJUDICATE

"IT HAS

IN CODES RESULTED

OF PRACTICE ON LONG TERM GENERAL INSURANCE BEING ADOPTED BY THE INSURANCE INDUSTRY, AND IN ESTABLISHMENT OF THE INSURANCE CLAIMS COMPLAINTS BUREAU TO COMPLAINTS RELATING TO PERSONAL POLICIES," HE SAID.

HAS BERN READY "THESE ARE CLEAR SIGNS THAT THE INDUSTRY WILLING TO TAKE ON A SELF-POLICING ROLE," HE ADDED.

APART FROM INSURERS, BROKERS AND

AND

SEEKING AGENTS WERE ALSO

TO RULES, MR NENDICK DRAW UP SELF-REGULATORY

SAID, ADDING THAT THE.

HAD HAD TO GROWTH OF THE INSURANCE MARKET HAD MEANT THAT GOVERNMENT

INTERESTS OF POLICY ADOPT A MORE POSITIVE ROLE IN ENSURING THAT THE HOLDERS WERE PROTECTED.

OF THE INDUSTRY, TURNING TO THE GOVERNMENT'S SUPERVISION

MR UP IN 1983 NENDICK SAID THE INSURANCE COMPANIES ORDINANCE WAS DRAWN TO PROVIDE A FRAMEWORK FOR REGULATING INSURANCE COMPANIES.

"THE ORDINANCE IS KEPT UNDER REGULAR REVIEW TO ENSURE THAT REQUIREMENTS MATCH MARKET DEVELOPMENTS.

ITS

THE REGISTRAR INDEPENDENT UNDER THE

"LAST JUNE, THE FORMER INSURANCE DIVISION UNDER GENERAL'S DEPARTMENT WAS EXPANDED AND TRANSFORMED INTO AN

COMMISSIONER OFFICE, THE OFFICE MONETARY AFFAIRS BRANCH.

OF THE

OF

INSURANCE,

THE RESOURCES

P

HE SAID.

"THERE HAS ALSO BEEN AN EXPANSION IN FOR THE SUPERVISION OF THE INSURANCE INDUSTRY,

AVAILABLE

OF

MR NENDICK SAID WITH THE GROWING AWARENESS IN THE COMMUNITY THE

OF INSURANCE, IMPORTANCE

THE

NEW INSURANCE DEVELOPMENT OF

WOULD CONTINUE TO BE PRODUCTS AND A SOUND REGULATORY REGIME, THERE

PROSPER AMPLE OPPORTUNITIES FOR THE INSURANCE INDUSTRY TO THRIVE AND IN HONG KONG.

·

HONG

RECENT STATISTICS SHOWED THAT MORE THAN 18,000 PEOPLE IN

THE KONG WERE EMPLOYED IN

THIS REPRESENTED INSURANCE INDUSTRY. THREE-FOLD INCREASE OVER THE NUMBER 10 YEARS AGO, HE SAID.

/"THERE ARE