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Based on available information, the situations in the UK, USA, Japan and Singapore are as follows-

The UK

The UK government, as well as the governments in other European Community ("EC") countries, are subject to an EC Directive not to play any role in the fixing of premiums or vetting of the terms of the policies. Therefore, there is no mechanism for the government to control the level of motor vehicle insurance premiums.

USA

In the USA, insurance legislation varies significantly among different states and accordingly the laws and practices relating to fixing of premiums differ. We therefore do not have any comprehensive information in this regard.

Japan

Motor vehicle insurance premium rates are fixed by the Automobile Insurance Rating Association of Japan. They must be approved by the Ministry of Finance and are binding on all insurers. However, Japan has recently agreed to liberalise the fixing of premiums on a gradual basis.

Singapore

There is no mechanism for the Singapore Government to control premium rates. Similar to Hong Kong, motor vehicle insurance premium rates are recommended by the trade association and are advisory in nature. Insurers are not obliged to follow the recommended

rates.