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Reinsurance companies

Following is a question by Dr the Hon Huang Chen-ya and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):

Question:

It is learnt that in recent years, there have been a number of serious frauds in the United Kingdom involving some reinsurance companies, and this has undermined the financial health of insurance companies. In view of this, will the Government inform this Council:

(a)

(b)

(c)

Whether locally registered insurance companies are allowed to enter into reinsurance arrangements with reinsurance companies which are not registered in the territory; if so, of the amount of such reinsurance premiums and the proportion of this amount to the total amount of reinsurance premiums of these insurance companies.

Whether there are any locally-registered insurance companies which have suffered losses as a result of the reinsurers running into operational problems in the past five years; if so, of the number of insurance companies so affected and their respective losses.

Of the measures taken by the Office of the Commissioner of Insurance to regulate the operations of the non-locally registered reinsurance companies which enter into reinsurance arrangements with locally- registered insurance companies?

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