The law, Commissioner of Insurance (IA) and the Insurance Intermediaries Qualifying Examination are the major forms of regulation used in the insurance industry in Hong Kong.
The relevant legal framework for the regulation of insurers is provided by the Insurance Companies Ordinance (Cap.41) , and its subsidiary legislation including Insurance Companies (Determination of Long Term Liabilities) Regulation, Insurance Companies (Margin of Solvency) Regulation and Insurance Companies (General Business) (Valuation) Regulation. The same Ordinance also provides a legal backing for the self-regulatory system of insurance intermediaries.
Besides, the Commissioner of Insurance, in his role as the Insurance Authority (IA), is responsible for the regulation of the insurance industry. The principal function of the IA is to regulate the insurance industry for the protection of existing or potential policy holders and the promotion of the general stability of the insurance industry. He is however not involved with the daily operations of an insurer, including determination of the terms and conditions of insurance policies or the fixing of premium rates.
The IA has been working with the insurance industry to implement the Insurance Intermediaries Quality Assurance Scheme, which with a view to enhancing the professional standard of insurance intermediaries. Under the Scheme, insurance intermediaries, the responsible officers, chief executives and technical representatives are required to pass the Insurance Intermediaries Qualifying Examination conducted by the Vocational Training Council , unless otherwise exempted, before they can be registered or authorized as such. Thereafter, they are required to attend continuing professional development programmes.