The Hong Kong Federation of Insurers (HKFI) today (25 March 2011) reaffirmed its full support for the setting up of a Policyholders' Protection Fund (PPF).

"The insurance industry welcomes the detailed and comprehensive proposal put forward by the Government.  We are pleased to see that the exercise is conducted in full transparency with input from the community", said Mr Allan Yu, Chairman of the HKFI.  "Building upon the strong surplus capital requirements and regulatory oversight from the Insurance Authority in Hong Kong, the PPF will give policyholders additional confidence in the collective ability of the industry to meet claims."

The HKFI has set up a special Task Force to study the proposal in depth and gather the views of our Member Companies and stakeholders.  We will continue to work closely with the Government to come up with a suitable and viable PPF in line with public expectations and to enhance our competitiveness. 

In 2010, the total gross insurance premiums of the Hong Kong insurance industry were $207.2 billion, representing about 11% of the GDP.