Insurance watchdog plan goes to lawmakers in July
Government stands firm on authority's start in 2015 despite opposition from industry
Despite strong opposition from the insurance industry, the government is determined to proceed with the establishment of an insurance authority in 2015.
"The proposed new regulator is necessary to protect the interests of all consumers who purchase insurance policies," said Eddie Cheung Kwok-choi, deputy secretary for financial services and the treasury.
"As such, the government does not plan to withdraw or have any major changes to our proposals."
Cheung said the government would present the proposals to lawmakers on July 5 before a formal submission is made in November. If lawmakers approve, the regulator will be operational in 2015, with 240 staff and an annual budget of HK$200 million.
Unlike Britain, Australia and Singapore, whose insurance sectors are monitored by independent regulators, Hong Kong's is overseen by the government's Office of the Commissioner of Insurance, which has no power to control agents.
The government first attempted to launch an insurance authority in 2003, but the plan was shelved after strong opposition from the industry. The proposal was raised again in 2011, with the government determined to press ahead. It only agree to withdraw a section giving the new insurance authority the power to temporarily suspend insurance companies or their staff from working in the industry without a disciplinary procedure or appeal.