1. Hong Kong insurance industry pays higher price for
regulation
The introduction of the proposed new Independent Insurance
Authority (IIA) will significantly
increase the costs to insurers and insurance intermediaries of
meeting more stringent regulation.
While the consultation phase for the new regulator is under way,
2013 is expected to see the introduction of legislation that will
make significant changes to the regulatory environment in Hong
Kong. Like other sectors of the economy, insurance in Hong Kong has
traditionally been subject to the principle of minimum
intervention.
However, the new independent insurance regulator (due to come
into force in 2015) will have strong powers to regulate and
supervise across the market, and will include conduct of business
requirements. In light of the enhanced oversight powers and duties,
the IIA may be more vigilant in its supervision of industry
practitioners.
