The relevant legal framework for the regulation of insurers is provided by the Insurance Companies Ordinance, Chapter 41 of the Laws of Hong Kong, and its subsidiary legislation including:
Insurance Companies (Determination of Long Term Liabilities) Regulation, Insurance Companies (Margin of Solvency) Regulation and Insurance Companies (General Business) (Valuation) Regulation. The same ordinance also provides a legal backing for the self-regulatory system of insurance intermediaries. The Commissioner of Insurance, in his role as the Insurance Authority, is responsible for the regulation of the insurance industry.
Numbers of Insurers, Brokers and Agents
As at 31 October 2000 204 insurers were authorised in Hong Kong. Of these approximately 70% were general business insurers, 21% long term business (or life) insurers and 9% composite insurers. 97 of these companies were incorporated in Hong Kong, with the balance coming from 25 different countries/regions - the US taking the lead (22), followed by the UK (18).
As at 31 October 2000 there were 376 authorized insurance brokers, ie those defined as acting on behalf of existing or potential policy holders in Hong Kong. There were approximately 34,079 insurance agents, ie those acting on behalf of authorized insurers, (approximately 92% individual agents and 8% corporate agents).
Major Classes of Insurance
Property damage (28%), accident and health (21%) and general liabilities (30%) were the major lines of business in terms of gross premiums in 1999.
In relation to long term business for 1999, individual life business (75%) was the most important line in terms of premiums, followed by retirement scheme management (22%). At the end of 1999 more than 4.2 million individual life policies were in force, covering about 63% of Hong Kong's population (on the assumption of one person per policy).
