Insurance Regulation and Financial Assessment.pptVIP

Insurance Regulation and Financial Assessment南京财经大学金融学院许菁菁 陶晓新 Insurance Statistics No. of Authorized Insurers (as at 31/5/2002) Long Term 47 General 138 Composite 18 203 Insurers incorporated in Hong Kong 98 Insurers incorporated outside Hong Kong 105 US Insurers 23 UK Insurers 15 No. of Authorized Insurance Brokers Agents Brokers 415 Agents 31,569 Purposes of Insurance Regulation To protect the public interest Financial Solvency Consumer unable to evaluate, the insurer’s promises of future performance. Complete freedom of entry of new insurance firms, not desirable fraud financial speculation by unregulated players. Severe unregulated competition in marketing insurance, misleading policy wording, monopolisation against the public interest Law Regulating the Insurance Industry Who is responsible for the Regulation Insurance Companies Ordinance, Cap. 41 its subsidiary legislation Insurance Companies (Determination of Long Term Liabilities) Regulation, Insurance Companies (Margin of Solvency) Regulation Insurance Companies (General Business) (Valuation) Regulation The Commissioner of Insurance (his role as the Insurance Authority) responsible for the regulation of insurance industry Principal Function of the Insurance Authority To regulate the insurance industry for the protection of existing potential policy holders and the promotion of the general stability of the insurance industry To work closely with the insurance industry to encourage the provision of better services to the insuring public and greater transparency in an insurer’s operation. How are insurance brokers agents being regulated Brokers – Under the self-regulatory system, need to be either authorized by the Office of Commissioner of Insurance or become a member of one of the two approved broker bodies, namely HKCIB and PIBA. Agent – Also under the self-regulatory system, need to be registered with and monitored by th