Hong Kong: Entire insurance value chain to fall under increased scrutiny
Source: Asia Insurance Review | Jan 2020
The Hong Kong insurance sector is going through a considerable period of change – with technology-driven disruption, digitisation of distribution channels and increased focus on both the customer journey and experience, said the international professional services firm EY.
In its Insurance Outlook 2020 report, EY notes that the Insurance Authority (IA) took on increased powers from 23 September 2019 in the regulation of agents and brokers, and with it, their focus will continue to be on effective systems and controls across the enterprise. EY said it is reasonable to expect, therefore, that the manufacturing, distribution and selling of insurance products will be subject to increased scrutiny.
According to EY, the top Hong Kong Insurance regulatory themes for 2020 are:
- Conduct and accountability
- Data and privacy
- Anti-money laundering and counter-financing of terrorism
- Technology dependency and cyber security
- InsurTech (including virtual insurers)
- Suitability and disclosure
- Enterprise risk management
- Own risk and solvency assessment
- Complaint handling. A