The Insurance Authority published consultation conclusions on two sets of rules required for the new statutory regulatory regime for insurance intermediaries, deciding that the cap on authorised insurers that an insurance agent may represent will remain at four, rather than being raised to five. The Insurance Authority also extended the transition period for licensed insurance broker companies by one year to slightly more than four years, and shelved the proposal to raise the minimum indemnity limit for professional indemnity insurance; the two sets of rules will be submitted to the Legislative Council for scrutiny and will take effect on the day the new regime is implemented.
Why read this: The conclusions state that the cap on insurers an agent may represent remains at four, and that the transition period for insurance brokers will be extended by one year, allowing the two final decisions to be checked against the original proposals.
Mar 31Sun
Sun
Translation is not available yet. Showing the Traditional Chinese version.
The Insurance Authority welcomes the proposed measures concerning the insurance sector in the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, announced by the State Council on 18 February 2019, including promoting cross-boundary renminbi reinsurance business, supporting the joint development of cross-boundary motor and healthcare insurance products, exploring the establishment of an international marine insurance product trading platform, and facilitating cross-boundary underwriting, survey and claims handling. Chairman Dr Joseph Chan said the measures could deepen cooperation among the insurance sectors of Guangdong, Hong Kong and Macao, and that the Insurance Authority would communicate and discuss implementation with mainland ministries, commissions and the industry.
Why read this: This press release sets out a number of proposed measures for the insurance sector under the Outline Plan, and explains that the Insurance Authority will discuss implementation arrangements with mainland ministries and commissions, allowing readers to grasp the policy direction.
The Financial Secretary said in a blog post that the HKSAR Government has no intention of relaxing the three property market cooling measures, namely the Special Stamp Duty (SSD), the Double Stamp Duty (DSD) and the Buyer's Stamp Duty (BSD), as members of the public still face difficulties in purchasing homes. He said that, without affecting the risk of the banking system, the Government would explore solutions for first-time buyers who are capable of servicing a mortgage but lack sufficient down payments, and would conduct continuous dynamic assessments taking into account property prices, transaction volumes, residential supply and the overall economic situation, without setting a rigid deadline.
Why read this: The blog post breaks down the policy objectives of each of the three property market cooling measures and sets out four factors to be assessed when considering relaxing mortgage rules, allowing readers to compare and understand the Government's stance.
The Financial Secretary announced that the tax deduction cap for qualifying deferred annuity premiums and MPF tax-deductible voluntary contributions would be raised from the originally proposed $36,000 to $60,000, representing the maximum total deduction available to each taxpayer. An amendment bill will soon be submitted to the Legislative Council for scrutiny, and it is hoped that the relevant deductions can take effect from 1 April next year once passed, after which the Insurance Authority will publish a list of qualifying deferred annuity products on its website.
Why read this: The blog sets out the arrangements for raising the deduction cap from $36,000 to $60,000, its effective date and how to apply, allowing readers to check the deductions they may claim.
Sept 30Sun
Sun
Translation is not available yet. Showing the Traditional Chinese version.
The Insurance Authority has launched a two-month public consultation on the "fit and proper" criteria and continuing professional training guidelines for licensed insurance intermediaries, closing on 30 November 2018. Individual licensees must attain grade 2 or above in five subjects in the Hong Kong Diploma of Secondary Education Examination (including Chinese or English and Mathematics), continuing training hours will rise from 10 to 15 hours per year, with at least 3 hours in ethics or regulatory disciplines.
Why read this: The consultation paper sets out minimum academic qualifications, 15 hours of training per year and three-year transitional arrangements, allowing verification of the new system's specific requirements for practitioners.
The Insurance Authority and the China Banking and Insurance Regulatory Commission have reached consensus that, under the "China Risk Oriented Solvency Testing System" (C-ROSS, commonly known as "C-ROSS II"), capital requirements for mainland insurance companies ceding business to qualifying professional reinsurers in Hong Kong will be reduced. The preferential measures are based on the framework agreement signed by the regulators of the two places on 16 May 2017, under which each other's solvency regulatory effectiveness is temporarily recognised as equivalent or similar during a transitional period of four years pending completion of the assessment work. For details, please refer to Notice CBIRC [2018] No. 34.
Why read this: The announcement explains that the preferential measures are based on the framework agreement signed in 2017 and the transitional period of four years for mutual recognition of equivalence, allowing readers to understand the prerequisites for the reduced capital requirements.
Jul 1Sun
Sun
Translation is not available yet. Showing the Traditional Chinese version.
The Insurance Authority will levy a premium charge on policyholders in accordance with the law from 1 January 2018, at an initial rate of 0.04% of the premium per policy year, rising gradually to 0.1%. In the first phase, the cap for life insurance is $40 per policy year and $2,000 for general insurance; failure to pay the maximum amount in accordance with the law may result in a fine of up to $5,000.
Why read this: The press release sets out the levy rates and caps in four phases from 2018, allowing policyholders to check the maximum amount payable per policy year according to policy type and premium amount.
The Insurance Authority will replace the Insurance Companies Ordinance regulator, the Insurance Authority office, a government department, in regulating insurers from 26 June 2017, and the Insurance Authority office will be dissolved on the same day. The new regime will widen the scope of regulation of insurers, and the Insurance Authority plans to implement a statutory licensing regime for insurance intermediaries within two years. The Insurance Authority will charge authorisation fees to insurers from the same day, and plans to levy a premium on policyholders from 1 January 2018; the subsidiary legislation has been submitted to the Legislative Council for scrutiny.
Why read this: The press release sets out the effective date, staffing establishment and fee schedule, allowing readers to check the transition arrangements and the progress of the premium levy.
Apr 19Wed
Wed
Translation is not available yet. Showing the Traditional Chinese version.