The government will open consultation this year on the long-awaited proposal to set up an independent insurance authority - an idea first mooted 16 years ago.
Commissioner of Insurance Annie Choi Suk-han said a consultant was working on the details of the plan and a consultation paper would be released in the first half of the year.
'It is an international trend for insurance regulators to work outside the structure of the government and we would like to match this,' she said.
Chan Kin-por, legislator for the insurance sector, supported the proposal but warned the new regulator should not impose too many costs on the industry, or over-regulate insurers.
Under the present system, the Commission of Insurance regulates the industry following the civil service structure.
Choi said the office will also launch a consultation in the third quarter of the year on the launch of an insurance policyholders protection fund.
