Following the provisional liquidation of Anglo Starlite Insurance Company Limited (Anglo Starlite) on 7 May 2009, the insurance industry has followed up accordingly to ensure other insurance companies are ready to offer renewal to all policies issued by Anglo Starlite upon expiry.

The Hong Kong Federation of Insurers (HKFI) has recently met with representatives of taxi associations to hear their concerns regarding the increase in taxi insurance premium.  We have explained that the setting of premium rates has to take into account the risk level involved, operating costs and reasonable returns.

As we all know, the risk level is commensurate with the accident rate.  If the number of accidents is reduced substantially, premium rates would have room for downward adjustment in the long run.  At present, there are at least six insurance companies providing taxi insurance.  With free and open market competition, the premium rate will find its right level accordingly.

"We are very concerned about the issue of taxi insurance and stand ready to maintain dialogue with relevant parties including taxi operators, the Insurance Authority and the Consumer Council for continued exchange of views." said Mr Peter C H Tam, Chief Executive of the Hong Kong Federation of Insurers.