The Hong Kong Federation of Insurers (HKFI) has proposed introducing new provisions to its articles of association which would allow it to suspend, censure and fine its members.
The proposed move is in an attempt to further strengthen the regulatory role of the HKFI and has been designed to provide a short-term solution ahead of wider regulatory powers being granted to the federation.
The HKFI represents more than 220 insurers in the SAR.
According to the federation's latest issue of Monthly Brief, the association's special task force recommended several ways to strengthen the role of the HKFI.
The task force was established in July to seek ways to boost the body's regulatory role in overseeing insurance companies.
Its main suggestion was setting an independent body to handle complaints against members and introduce compulsory membership for all insurers operating in the SAR.
After four months of consultation, the task force rejected compulsory membership after its legal advisers said there was no legal backing for the insurance industry for such a requirement.