XN000022-1996-03-15 — Page 12

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Office premiums for long-term business increased by 26% to $19.5 billion. The increase is mainly due to the significant growth in individual life business of 30% to $14 billion. At the end of 1994, the total number of individual life policies in force exceeded 2.5 million which covers about 40% of the population in the territory.

At present, there are 222 authorised insurers operating in Hong Kong with 160 writing general business, 42 writing long-term business and the remaining 20 engaging in both types of business. Of these insurers, 100 are incorporated in Hong Kong and the others being incorporated in 28 different countries with the UK and USA taking the lead.

Mr Lam said: "As the Commissioner of Insurance, my primary responsibility is to ensure the overall financial soundness of the Hong Kong insurance industry,

"Hong Kong has an effective insurance regulatory system which combines adequate protection of the insuring public while allowing maximum opportunity for industry growth."

He pointed out that 1995 marked an important year for the development of insurance legislation in Hong Kong. The legislative changes which came into operation during the year affected both insurers and insurance intermediaries.

"The most important ones are that insurance intermediaries have, for the first time, been brought under the regulation of the Insurance Companies Ordinance with effect from June 30, 1995; a long-term business insurer is required to maintain a new solvency margin which is commensurate with its liabilities; and a general business insurer is required to value its assets and liabilities in accordance with a prudent standard.

"As an on-going process to review and update the Insurance Companies Ordinance, the Insurance Companies (Amendment) Bill 1996, gazetted on February 2, 1996, seeks to revise the minimum capital and solvency margin requirement to compensate for the effect of inflation as well as bring them in line with international standards." he explained.

On the work of the Office of the Registrar of Occupational Retirement Schemes, Mr Lam said that the transitional period for employers to register their retirement schemes expired on October 15, 1995.

As at December 31, 1995, the Registrar's Office had received 15,352 applications for registration of the schemes. Of the 13,378 schemes approved, 93% were defined contribution schemes while 7% were defined benefit schemes.

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