Insurance authority law to be tabled in HK
28 June 2013
News, Hong Kong
By Asia Asset Management
Hong Kong’s government will refine legislative proposals for the establishment of an independent insurance authority after considering public consultation feedback, and will table the amendment bill at the legislative council this year in a bid to form the authority in 2015, according to an announcement from Hong Kong’s Information Services Department on June 26.
The Financial Services & the Treasury Bureau said the authority's establishment is the most significant reform initiative for the insurance industry since the passage of the Insurance Companies Ordinance in 1983.
The policy objectives of establishing it are to modernise the regulatory infrastructure of the insurance industry to provide better protection for policyholders, facilitate the stable development of the industry, and align with international practice, says the report.
Hong Kong’s government consulted the public on the key legislative proposals from October 2012 to January 2013.
After considering the comments received, the government has refined its proposals; including the draft legislative provisions governing the constitution of the authority, the appointment of responsible officers, certain conduct requirements, the specified suspension power, and licensing and enforcement arrangements.
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