Significant developments in the insurance sector
Establishment of HKFI. Total premiums are around $13bn.
The Hong Kong Confederation of Insurance Brokers formed by merger of the Hong Kong Insurance Brokers Association and Hong Kong Society of Insurance Brokers.
HKFI’s Life Insurance Council introduces the Code of Practice for Life Insurance Replacement to control ‘twisting’.
Financial secretary Donald Tsang announces a working group to explore making Hong Kong the region’s reinsurance centre and fostering captive insurance business.
Insurance Companies (Amendment) Ordinance 1997 sees concessions put in place to encourage captives.
Handover of Hong Kong to China by Great Britain. The territory has 215 insurance firms, 151 general, 45 life and the balance composites together with 29 reinsurers.
9/11 – stock prices of Hong Kong’s insurers drop by more than 20%.
SARS-related insurance claims top $100m – demand for health insurance spikes.
Closer Economic Partnership Arrangement (CEPA) signed with China allowing local insurance companies to ‘form strategic partnerships in order to enter the mainland insurance market’.
Premiums in Hong Kong reach $200bn.
Global financial crisis – AIG requires a US government bailout and so Hong Kong-based AIA separates from the group in 2009.
The Motor Insurers’ Bureau pays out HK$862m to settle outstanding claims on Anglo Starlite Insurance after a massive fraud scheme in the 2000s caused the firm to collapse.
Government commissions a consultancy study for developing an RBC framework.
Government conducts a public consultation on the conceptual framework for RBC.
Allied World Assurance completes the acquisitions of the Hong Kong operations of Royal & Sun Alliance Insurance.
Chubb officially changes the name of its life insurance subsidiary in Hong Kong from ACE Life to Chubb Life Insurance Company following ACE Limited’s acquisition of The Chubb Corporation.
Typhoon Hato is the first ‘super typhoon’ in five years in Hong Kong causing over $2bn of economic losses across Hong Kong and Macau – and insured losses estimated at over $300m.
Government briefs members on the proposed RBC framework for the insurance industry
IA releases provisional statistics showing total gross premiums of $489.6bn