Regulation

Insurance
Regulation and complaints

Insurance companies and insurance intermediaries are regulated in Hong Kong under the provisions of the Insurance Ordinance (Cap. 41).

Insurance companies

Insurance companies carrying on business in or from Hong Kong have to apply to the Insurance Authority(IA) for authorisation. To be an authorised insurer, the company has to fulfill requirements relating to capital, solvency, fitness and properness of management and shareholders and adequacy of reinsurance arrangements.

Insurance intermediaries

Under the Insurance Ordinance (IO), any person who carries on a regulated activity 1 in the course of the person’s business or employment, or for reward, must hold an appropriate type of licence under the IO, unless exempt. It is an offence for contravening the IO.

There are two types of licensed insurance intermediaries - licensed insurance agent and licensed insurance broker. A licensed insurance agent acts as the agent of his appointing insurance company(ies) and sells insurance products on behalf of that/those company(ies). A licensed insurance broker, on the other hand, acts on behalf of clients to look for suitable insurance products from different insurance companies.

With effect from 23 September 2019, the IA is the regulator to license and supervise insurance intermediaries in Hong Kong. Complaints about the misconduct of insurance intermediaries are also handled by the IA.

 

1 Regulated activity includes negotiating or arranging a contract of insurance; inviting or inducing, or attempting to invite or induce, a person to enter into a contract of insurance; inviting or inducing, or attempting to invite or induce, a person to make a material decision; and giving regulated advice.