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Actuaries to take on watchdog role

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Actuaries will have to report any fraud they uncover at insurance companies to the Insurance Authority in future, Insurance Commissioner Alan Wong Chi-kong says.

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Mr Wong yesterday said the Insurance Ordinance did not clearly define the role and duties of actuaries because it was based on the assumption their work was restricted to valuation of long-term insurance business.

He said that in Australia, Canada and Britain, actuaries were not just responsible for valuation work but also reported on the financial condition of insurance companies.

'Compared with the systems overseas, our system is inadequate in terms of policy-holder protection,' Mr Wong said in a Government paper to the Legislative Council.

He said the Insurance Authority would adopt professional standards issued by the Actuarial Society of Hong Kong in 1993, known as PS1, which set out the role and duties of appointed actuaries on life insurance.

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The authority would adopt the society's standards for retirement business at a later date.

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