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Insurance Authority

Insurance Authority
保險業監管局

Headquarters at Wong Chuk Hang
Agency overview
Formed7 December 2015; 9 years ago (2015-12-07)
Preceding agency
  • Office of the Commissioner of Insurance
JurisdictionHong Kong
HeadquartersWong Chuk Hang, Hong Kong
Agency executives
Websitehttps://www.ia.org.hk/

The Insurance Authority (IA) of Hong Kong is the statutory body charged with regulating the insurance industry in Hong Kong. It is a regulator run independently of the Government of Hong Kong.

History

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Prior to the establishment of the IA, the insurance industry in Hong Kong was overseen by the Hong Kong government's Office of the Commissioner of Insurance, which had no power to control agents. The government first attempted to launch the IA in 2003, but the plan was shelved after strong opposition from the insurance industry. The proposal was raised again in 2011 with the government agreeing to withdraw a section that gave the IA power to temporarily suspend insurance companies or their staff from working in the industry without a disciplinary procedure or appeal. However the government remained firm on the penalties the IA could impose.[1] In July 2015, Hong Kong legislators passed a law to set up the IA that would replace the Office of the Commissioner of Insurance.[2] On 7 December 2015, the IA was officially established.[3]

On 26 June 2017, the IA officially commenced operations taking over from the Office of the Insurance Commissioner as regulator for all insurance companies and as well as overseeing their insurance sales staff. It had far more power compared to its predecessor. Its first task was to work with the China Insurance Regulatory Commission regarding cross border regulation.[3][4]

Regulatory actions

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In August 2017, the IA announced plans to introduce a licensing fast track for online-only insurance companies. It was specifically for online-only insurers providing direct sales of basic life insurance, travel or personal accident coverage.[5] In December 2018, the first license under this scheme was given to Bowtie Life Insurance.[6]

In July 2022, the IA wound up Target Insurance which was Hong Kong's largest vehicle insurance company at the time. It was deemed insolvent after HK$1.2 billion was found missing from its accounts. This was the first time the IA had to perform a significant regulatory action since its establishment.[7]

In July 2024, the IA took over Tahoe Life Insurance after the company went into financial distress. This was due to it restrictions being placed on it by the IA in 2021 after a HK$2.2 billion debt investment with its real estate parent company Tahoe Group was discovered to be worthless.This marked the first time the IA had to take control over a distress life insurance company in Hong Kong.[8]

In August 2024, the IA fined AIA Group HK$23 million due to insufficient anti–money laundering controls. At the time, this was the largest regulatory fine issued by the IA.[9]

See also

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References

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  1. ^ Yiu, Enoch (27 June 2013). "Insurance watchdog plan goes to lawmakers in July". South China Morning Post. Retrieved 27 May 2025.
  2. ^ Yiu, Enoch (20 September 2015). "Powerful Hong Kong insurance watchdog running before end of 2015". South China Morning Post. Retrieved 27 May 2025.
  3. ^ a b "New Insurance Authority in Hong Kong commences regulation of insurers with enhanced powers". Herbert Smith Freehills. 28 June 2017. Retrieved 27 May 2025.
  4. ^ Yiu, Enoch (11 June 2017). "Exclusive | Hong Kong's insurance chief sets first task: cross-border enforcement". South China Morning Post. Retrieved 27 May 2025.
  5. ^ Yiu, Enoch (11 October 2017). "Insurance Authority to fast track for online-only insurers". South China Morning Post. Retrieved 27 May 2025.
  6. ^ "Hong Kong gives first online-only insurance license to Sun Life-backed firm". Reuters. 20 December 2018. Retrieved 27 May 2025.
  7. ^ Yiu, Enoch (15 July 2022). "Hong Kong winds up Target after finding taxi insurer to be insolvent". South China Morning Post. Retrieved 27 May 2025.
  8. ^ Yiu, Enoch (26 July 2024). "Hong Kong's Insurance Authority appoints managers to take control of Tahoe Life". South China Morning Post. Retrieved 27 May 2025.
  9. ^ Hu, Bei (2 August 2024). "Hong Kong Hits AIA With Record Fine for Anti-Laundering Lapses". Bloomberg News.