ENG-2016 — Page 111

Statistics on Insurance Business

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Financial and Monetary Affairs

2014

2015

2016

Number of authorised insurers

158

157

160

Of which:

Incorporated in Hong Kong

86

86

87

Incorporated on the Mainland

or overseas

72

71

73

Premium income ($ billion)

339.3

374.1

448.8*

Total gross premiums

Of which:

Long-term in-force business

295.7^

328.1^

403.2*#

(Office/Revenue premiums)

General insurance (Gross premiums)

43.6

46.0*

45.6*

Ʌ Office premiums

# Revenue premiums

* Provisional statistics

At the end of 2016, there were 99,435 individual insurance intermediaries, comprising 9,452 Chief Executives or Technical Representatives (TRS) of 756 broker firms, 26,798 Responsible Officers or TRs of 2,482 agency firms, and 63,148 individual agents and their 37 TRs.

Insurance Authority

The Commissioner of Insurance is appointed by the Chief Executive as the IA under the Insurance Companies Ordinance with the principal function of regulating and supervising the insurance industry to promote its general stability and protect policyholders13.

As a member of the International Association of Insurance Supervisors (IAIS), Hong Kong is also required to observe international principles and standards in its insurance supervisory regime. The IA works closely with regulators in other jurisdictions in regulating major insurance groups and takes part in supervisory colleges organised by the home regulators of such groups.

Recent Developments

The IA issued a guidance note in July 2015 on underwriting life insurance policies other than investment-linked assurance schemes, to enhance standards of conduct and promote sound and prudent business practices among insurers. The guidance note took effect on 1 April 2016

13 The Insurance Companies Ordinance prescribes a regulatory framework for all classes of insurance business to ensure the financial stability of all insurers authorised in Hong Kong and the fitness and propriety of their management. The IA may take appropriate action under the ordinance against an insurer to safeguard the interests of policyholders.

The ordinance also sets out a self-regulatory framework for insurance intermediaries. The self-regulatory organisations include the Insurance Agents Registration Board under the Hong Kong Federation of Insurers, the Hong Kong Confederation of Insurance Brokers and the Professional Insurance Brokers Association.

The IA also plays the statutory role of ensuring MPF intermediaries from the insurance sector comply with conduct requirements stipulated in the MPF Schemes Ordinance.

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