Powerful Hong Kong insurance watchdog running before end of 2015
High-powered independent regulator of both insurers and agents to be set up in three stages
The government is identifying candidates to be the chairman and directors of the high-powered insurance watchdog to be set up by the end of the year, the South China Morning Post has learnt.
In an exclusive interview with the Post, Eddie Cheung Kwok-choi, the deputy secretary for financial services and the treasury, unveiled the government's blueprint for the proposed Insurance Authority.
"The establishment of the Insurance Authority will offer protection to policyholders and introduce appropriate regulation for all 80,000 insurance salespeople," Cheung said.
In July, legislators passed a law to set up the authority, which will be an independent regulator like the Securities and Futures Commission.
It will replace the Office of the Commissioner of Insurance, which regulates insurance companies but not salespeople. The new body will oversee insurers and agents.
Cheung said the authority would be set up in three stages. In the first, the founding board will be formed by the end of this year to appoint the chief executive and other senior functionaries for the 237-staff authority.
The second stage will see the Insurance Authority take over all regulatory duties of the Office of the Commissioner of Insurance by the end of next year.