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(c)

- 8.

The overseas operations of reinsurance companies not authorized in Hong Kong are not subject to the regulation of the Ordinance. However, an insurance company in Hong Kong wishing to place reinsurance with any reinsurance company (whether authorized in Hong Kong or not) will be subject to, inter alia, the requirement for adequate reinsurance arrangements. Each year an insurance company is required to submit particulars of its reinsurance arrangements to the IA for inspection. These particulars include the type of reinsurance treaties, the limits under those treaties and the identities of the reinsurance companies.

In determining the adequacy of reinsurance arrangements, the IA will take into account, inter alia, the financial condition of the reinsurance companies concerned by making reference to their financial statements and other relevant information such as rating publications. In case of doubt, the IA would also consult the relevant insurance authorities responsible for the regulation of the companies concerned in their places of incorporation. If the IA is not satisfied with the financial condition of a reinsurance company, the amount recoverable from the company will be excluded in assessing the solvency position of the locally authorised insurance company. Alternatively, the insurance company may be required to remove and substitute the reinsurance company concerned from its panel of reinsurance companies.

Study on Citizen Card Scheme

***

Following is a question by the Hon Zachary Wong and a written reply by the Secretary for Health and Welfare, Mrs Katherine Fok, in the Legislative Council today (Wednesday):

Question:

At the meeting of the LegCo Panel on Welfare Services held on 10 January this year, officials from the Social Welfare Department stated that they were in the process of commissioning a consultancy firm to study how the Senior Citizen Card Scheme can be improved. In this connection, will the Government inform this Council:

(a) of the scope of the above study;