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From May this year, insurers carrying on direct general business are required to maintain sufficient assets in Hong Kong to match their Hong Kong insurance liabilities.
Apart from the above, a legal framework supporting the self-regulation of insurance intermediaries was introduced. It defines the roles and responsibilities of insurance agents and brokers; and also prohibits anyone from operating as an insurance intermediary unless registered or approved pursuant to the Insurance Companies Ordinance.
As a continuous process to improve the prudential supervision of the insurance industry, the Insurance Companies (Amendment) Bill 1995 was gazetted recently. Its main object is to enable beneficial exchange of information between the Insurance Authority and other financial regulators, as well as transfer of general business from one insurer to another.
To respond to reinsurers' withdrawal of unlimited reinsurance cover for motor third party liability and employees' compensation insurance, the Motor Vehicles Insurance (Third Party Risks)(Amendment) Bill 1995 and Employees' Compensation (Amendment) Bill 1995 were gazetted in January this year. These two Bills seek to specify a minimum insurance requirement to replace the unlimited insurance cover currently required.
On the regulation of retirement schemes under the Occupational Retirement Schemes Ordinance (ORSO), one of the first duties of the Registrar of Occupational Retirement Schemes is to register all existing schemes applying for registration within a transitional period of two years ending on October 15, 1995.
Statistics on these schemes covering the period from the commencement of the ORSO on October 15, 1993 to December 31, 1994 are shown in the Report.
The Registrar's Office received 1,869 applications out of which 91 per cent were defined contribution schemes while 9 per cent were defined benefit schemes.
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