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THURSDAY, JULY 2, 1992

DURING THE PERIOD, THE AUTHORISATION OF 36 INSURERS WERE

WITHDRAWN.

FIVE OF THESE WITHDRAWALS WERE RELATED TO INSURERS WHICH WERE WOUND UP VOLUNTARILY OR BY ORDER OF THE COURT.

THE REMAINING 31 WITHDRAWALS WERE EFFECTED AS A RESULT OF THEIR CESSATION OF INSURANCE BUSINESS IN HONG KONG.

AS AT DECEMBER 31, LAST YEAR, THERE WERE 240 AUTHORISED INSURERS OPERATING IN HONG KONG.

OF THESE, 113 WERE HONG KONG INCORPORATED. OF THE INSURERS INCORPORATED OVERSEAS, 32 WERE INCORPORATED IN THE UK, 22 IN THE USA, NINE IN BERMUDA, EIGHT IN JAPAN, SEVEN IN SWITZERLAND, AND FIVE EACH IN CANADA AND SINGAPORE.

THE

EIGHT NEW APPLICATIONS FOR AUTHORISATION WERE RECEIVED DURING PERIOD, BRINGING THE TOTAL NUMBER OF NEW APPLICATIONS CONSIDERATION BY THE INSURANCE AUTHORITY TO 12.

UNDER

AS AT DECEMBER 31, LAST YEAR, THERE WERE FIVE APPLICATIONS PENDING, ONE RELATING TO LONG TERM BUSINESS AND FOUR ΤΟ GENERAL BUSINESS.

THE COMMISSIONER OF INSURANCE EXERCISED HIS POWER OF INTERVENTION ON 123 OCCASIONS DURING THE PERIOD IN CONNECTION WITH 50 AUTHORISED INSURERS.

AMENDMENTS ΤΟ THE INSURANCE COMPANIES ORDINANCE, WHICH CAME INTO OPERATION DURING THE PERIOD WERE AS FOLLOWS :

11

* INSURANCE COMPANIES (AMENDMENT) ORDINANCE ENACTED ON JUNE 29,

1990, INTRODUCED

PRIOR NOTIFICATION" REQUIREMENTS CONCERNING PROPOSED CHANGES OF CONTROLLERS

BY

AUTHORISED INSURERS, AND PROVISIONS TO GIVE LEGAL EFFECT TO INSURANCE CONTRACTS ISSUED BY UNAUTHORISED INSURERS.

* INSURANCE COMPANIES ORDINANCE (AMENDMENT OF THIRD SCHEDULE}

REGULATIONS 1990 WERE INTRODUCED ON DECEMBER 7, 1990. THEY BRING INTO EFFECT NEW REPORTING REQUIREMENTS FOR HONG KONG INSURANCE BUSINESS STARTING FROM THE FINANCIAL YEAR DECEMBER 31, 1990.

INSURERS INVOLVED IN GENERAL BUSINESS ARE REQUIRED ΤΟ SUBMIT STATISTICS OF THEIR MARKET IN HONG KONG FROM 1990.

BASED ON THE REPORTED STATISTICS, THE COMMISSIONER'S ANNUAL REPORT NOTED THAT THE TOTAL GROSS PREMIUMS AND NET PREMIUMS FOR HONG KONG GENERAL BUSINESS (DIRECT AND REINSURANCE INWARDS) FOR THE FISCAL YEAR 1990 AMOUNTED TO $9,042 MILLION AND $5,461 MILLION RESPECTIVELY, WITH THE AVERAGE RETENTION RATIO BEING 60 PER CENT.

IN TERMS OF GROSS PREMIUM INCOME, PROPERTY DAMAGE INSURANCE BUSINESS COMPRISED THE LARGEST MARKET SHARE (31 PER CENT), FOLLOWED BY MOTOR VEHICLE (22 PER CENT) AND GENERAL LIABILITY (WHICH INCLUDES EMPLOYEES' COMPENSATION INSURANCE) (15 PER CENT).

/IN TERMS

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