As from 23 September 2019, the Hong Kong Government has appointed the Insurance Authority (IA) to take over the regulation of Insurance Intermediaries. The new regime will supersede the three Self-Regulatory Organisations (SROs); the Hong Kong Confederation of Insurance Brokers (CIB), Insurance Agents Registration Board (IARB) and Professional Insurance Brokers Association (PIBA), as the new supervisory body for all brokers and agents.
What does it mean for Insurance Intermediaries?
In simple terms, the IA will implement a more robust statutory licensing system and will supervise all insurance intermediaries in Hong Kong. The new regulations will reshape the SRO’s membership requirements and upgrade earlier IA guidelines covering the minimum requirements for Insurance Intermediaries (brokers) and more. The new system will take into account and build upon the previous codes of practice and operate within a wider scope to provide more transparency and conduct within the industry. To ensure a smooth change over, a three-year transition period has been granted to provide insurance intermediaries time to comply. All new set minimum requirements and conduct will need to be met when the ‘transitional period’ comes to an end.
Alliance Insurance Services will receive a new Insurance Authority License Number which will be available in due course to disclose to all of our individual clients and corporate clients. All existing licensed members will continue to be licensed under the new Insurance Authority regime with no gap. In order to meet the new Insurance Authority changes, AIS will continue to comply with all requirements with a professional, fair and transparent attitude and work with honesty and integrity to adhere to the compliance and operational requirements.
Peace of mind for clients
Tougher compliance rules such as an increase in paid up share capital, net assets, professional indemnity insurance etc. does not faze Alliance Insurance Services and we can proudly say how we operate shows how stable and transparent we are. From this, our clients have further protection, and confidence in working with us.
Each and every individual advisor employed by Alliance Insurance Services are well educated and are put through various training platforms to continuously upgrade their technical expertise, their product knowledge and also ethical and regulatory knowledge to stay ‘fit and proper’. Overtime, Alliance Insurance Services will keep on investing and developing ourselves to bring our clients the best insurance solution advice and be a helping hand away.
Click here for more information about the proposed new codes and guidelines directly on the Insurance Authority website. If you wish to understand more, feel free to contact us via email: [email protected].