Bill amending Insurance Companies Ordinance to be tabled this year

Establishment of an independent insurance authority almost certain.

The establishment of an Independent Insurance Authority (IIA) and the provision for a new statutory licensing regime for insurance intermediaries has been described by the government as “the most significant reform initiative for the insurance industry since the passage of the Insurance Companies Ordinance in 1983?.

The proposals attempt to modernize the regulatory infrastructure of the insurance industry and to bring it into line with other financial regulatory regimes and with international practice.

Among the key proposals are the functions, governance and regulatory powers of the IIA; a new licensing regime for insurance intermediaries and regulatory arrangements for banks’ insurance activities.

Hong Kong plans to finalize and introduce a bill amending the Insurance Companies Ordinance (ICO) in the Legislative Council by the end of this year. It plans to introducing the new regime in 2015.