THE insurance industry has to respond to growing pressure for lower-priced insurance products and more transparency in the operation of the market, says Governor Chris Patten.

''Great disclosure of the relevant facts and figures removes misunderstanding and instils in the public much greater confidence,'' he said.

Speaking at the annual dinner of the Hong Kong Federation of Insurers, the Governor said consumers in Hong Kong were becoming better educated.

''I am encouraged that the federation, the most representative body of the insurance industry, continues vigorously to promote and develop self-regulation.''