The Hong Kong Federation of Insurers (HKFI) today (24 June 2011) reaffirmed its support in principle for the proposed establishment of an independent Insurance Authority (IIA).

“An independent Insurance Authority will help improve and strengthen the present regulatory regime for better consumer protection,” said Mr Alex Chu, Chairman of the HKFI.  “Also, it will be good for the healthy development of the insurance industry in the long term.”

To ensure the successful transformation of the regulatory regime, the HKFI would like to reiterate the importance of the Government conducting a second round consultation with the industry on details of the proposed changes.  In particular, we need to work out the proper way in which the industry can participate in the future Governing Board of the proposed IIA.  Also, it is necessary to set out clearly how the banking channels are to be regulated to ensure supervisory consistency and a level playing field for all insurance intermediaries. 

The HKFI welcomes the proposed transitional arrangements for the setting up of the IIA.  We stand ready to offer advice and assistance to ensure the process is conducted smoothly.