The Insurance Authority welcomes the China Banking and Insurance Regulatory Commission formally incorporating the preferential measures for the Hong Kong insurance industry into the Insurance Company Solvency Regulatory Rules (II). Implemented since 2018, the measures allow an equivalent preferential factor to apply when mainland insurance companies cede business to qualifying professional reinsurance companies in Hong Kong. The rules also specify the relevant capital requirements for mainland insurance institutions issuing catastrophe bonds in Hong Kong.
Why read this: The preferential measures have been extended annually since their implementation in 2018, and have now been formally incorporated into the Rules (II), allowing readers to verify the long-term arrangements and scope of application of the measures.
The Insurance Authority reprimanded two insurance companies, formerly known as MetLife, for breaching seven specified provisions of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, and imposed a fine of HK$7 million. The investigation found that between January 2015 and October 2017, the two companies failed to maintain effective procedures to identify politically exposed persons and monitor suspicious transactions. The two companies have taken remedial measures and were acquired by FWD Group on 30 June 2020.
Why read this: The press release specifies the breach period and the seven provisions involved, allowing readers to verify the basis for the fine and each of the control deficiencies.
On 7 January 2022, the Insurance Authority appointed a manager under the Insurance Ordinance (Cap. 41) to take over the affairs and assets of Titan Insurance in full. The Insurance Authority said Titan's investment activities and fund allocation may have breached statutory requirements; nearly 80 per cent of its business is motor insurance, involving about 10,000 taxis, accounting for a 1.43 per cent share of the general direct insurance business market, and the coverage terms of existing policies are unaffected.
Why read this: The Insurance Authority explained that the takeover was due to Titan's investment activities and fund allocation potentially breaching statutory requirements, and listed its 1.43% market share and that existing policies remain unaffected, allowing readers to check their own situation.
The Insurance Authority, the Mandatory Provident Fund Schemes Authority and the Hong Kong Monetary Authority announced the joint launch of a mystery shopping inspection scheme to understand intermediaries' practices in selling qualifying deferred annuity policies (QDAP) and tax-deductible voluntary contributions (TVC) under the Mandatory Provident Fund in Hong Kong, marking the first time the three financial regulators have collaborated on such a scheme. The scheme is expected to commence in January 2022 and will target intermediaries regulated by the three bodies that sell or promote these two tax-deductible products in Hong Kong. Results will be used to complement each body's regulatory work, and relevant issues and good practices will be shared with the industry.
Why read this: The press release specifies that the scheme covers three categories of regulated intermediaries and states when it will commence, allowing readers to verify what sales practices will be inspected.
The Insurance Authority and the Hong Kong Monetary Authority issued a joint circular on 30 September 2021, setting out the key findings of their joint inspections of the premium financing business of long-term business insurers and licensed insurance intermediaries. The inspections were conducted in the second half of 2020, and the two regulators will contact the industry to clarify the standards to be met when conducting premium financing activities. Chief Executive Clement Cheung reminded that premium financing involves the risks of leveraged borrowing and rising interest rates.
Why read this: The inspections were conducted in the second half of 2020, and the circular highlights the leverage and interest rate risks of premium financing, allowing readers to check the policy arrangements they hold.
Sept 5Sun
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Translation is not available yet. Showing the Traditional Chinese version.
The China Banking and Insurance Regulatory Commission (CBIRC) announced that the preferential measures under China's risk-oriented solvency regime for Hong Kong will be extended by one year to 30 June 2022. Capital requirements for mainland insurers ceding business to qualifying Hong Kong professional reinsurers can continue to be reduced. The Insurance Authority said the measures help strengthen cross-border financial links and reinforce Hong Kong's advantages as a regional insurance hub. The measures are based on the framework agreement signed on 16 May 2017, with a transition period running until May 2025.
Why read this: The text states that the preferential measures originated from the framework agreement signed in May 2017, and specifies the extended deadline and relevant document number, allowing readers to verify the basis.
The Financial Secretary said in his blog that the Consumption Voucher Scheme had received over 4.8 million registrations in its first week, with about 80 per cent completing electronic registration identity verification using data from last year's Cash Payout Scheme. The blog also answered common questions on SMS notifications, uploading copies of identity cards and the requirement to reside in Hong Kong. Those who complete electronic registration before 17 July will receive the first instalment of consumption vouchers on 1 August.
Why read this: The Secretary reported progress on over 4.8 million registrations in the first week of the Consumption Voucher Scheme, and addressed common questions item by item on SMS notifications, identity verification uploads and the requirement to reside in Hong Kong.
Jul 4Sun
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Translation is not available yet. Showing the Traditional Chinese version.
Financial Secretary urges the public to take part enthusiastically in the Universal Community Testing Programme, which starts on 1 September and lasts about two weeks, to identify asymptomatic hidden patients early and interrupt the chains of community transmission. The programme offers one free virus test and online booking, while hospital beds will increase from more than 3,000 at present to more than 5,000 by year-end. The Financial Secretary also set out a dual-objective strategy that gives equal weight to "strictly guarding against the epidemic" and "vigorously safeguarding the economy".
Why read this: The article sets out the proportion of cases with unknown sources and the year-end bed target, and explains the dates and booking arrangements for the Universal Community Testing Programme, enabling readers to assess whether to take part.
On 7 August 2020, the Insurance Authority urged the public to stay alert and watch out for five fraudulent apps impersonating the official mobile app of AIA International Limited. AIA has confirmed they are unrelated to it, and the case has been referred to the Hong Kong Police Force for investigation. Anyone who has provided personal information or carried out insurance transactions through the relevant websites or apps should call the AIA customer service hotline on 2232-8888 and report the case to the police.
Why read this: Lists five fraudulent apps impersonating AIA and their source URLs, and sets out contact and police-reporting arrangements for those who have provided personal information or carried out transactions.
Jun 21Sun
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Translation is not available yet. Showing the Traditional Chinese version.