The newly set up Hong Kong Insurance Authority plans to work with its mainland counterpart on cross border regulation in a bid to protect the thousands of mainlanders who represent nearly two-fifths of life policies sold in the city annually.
“There are many mainlanders buying insurance products in Hong Kong which is positive for Hong Kong as an international insurance centre. However, these cross border transactions also mean there is a need for us to pay attention and to keep in close communication with the mainland insurance regulator to crack down on any malpractices or misselling to protect the interest of all policyholders,” said Moses Cheng Mo-chi, Chairman of the Insurance Authority.
He added that the Authority would work with CIRC to bolster public education on insurance products in both the mainland and Hong Kong, reported the South China Morning Post. The Insurance Authority will officially start operations on 26 June, taking over from the Office of the Insurance Commissioner as regulator for all insurance companies.
Mainlanders bought HK$49 billion (US$6.28 billion) worth of life policies in Hong Kong during the first nine months of 2016, representing almost 40% of all life policies sold in the city, according to the most recent data.