Hong Kong is home to the most authorized insurance companies in all of Asia. The insurance market in the fabled city-state has been experiencing wondrous growth for several years thanks to the relatively lax regulations imposed upon the industry. In fact, Hong Kong currently has no singular authority in charge of regulating the insurance industry. This will soon change, however, as the government prepares to the first independent insurance authority.
Government officials are now consulting with several insurance experts to gain insight on the initiative. The overall aim of the project is to bolster regulation and provide a structure to better foster a growing insurance industry. The government will also meet with insurance officials to further understand how increased regulation will affect the multitude of companies operating within the city-state.
The new insurance regulator will be imbued with the authority to conduct investigations and seize material from companies and their intermediaries. They will also be tasked with upholding regulations and levying sanctions against companies that fail to meet standards. The lack of an adequate regulation system in Hong Kong has led many of its citizens to question the professionalism of the industry as a whole.
The new authority is expected to raise the people’s confidence in the industry. The regulator will also promote competition within the industry in the effort to drive insurance prices lower for consumers.
There is no set date as to when the government will be installing the new authority, but speculation suggests that it will be before the end of this year.