Governance, Risk and Compliance - The Hong Kong Insurance Industry

Published: Feb, 2016 | Pages: 48 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)

Synopsis
Timetric’s ' Governance, Risk and Compliance – The Hong Kong Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Hong Kong.

It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together Timetric’s research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

Summary
The report provides insights into the governance, risk and compliance framework pertaining to the insurance industry in Hong Kong, including:

• An overview of the insurance regulatory framework in Hong Kong.

• The latest key changes, and changes expected in the country’s insurance regulatory framework.

• Key regulations and market practices related to different types of insurance product in the country.

• Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in Hong Kong.

• Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations.

• Details of the tax and legal systems in the country.

Scope
• The report covers details of the insurance regulatory framework in Hong Kong.

• The report contains details of the rules and regulations governing insurance products and insurance entities.

• The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.

• The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.

• The report provides details of taxation imposed on insurance products and insurance companies.

Reasons To Buy
• Gain insights into the insurance regulatory framework in Hong Kong.

• Track the latest regulatory changes, and expected changes impacting the Hong Kong insurance industry.

• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.

• Understand key regulations and market practices pertaining to various types of insurance product.

Key Highlights
• The OCI is the regulatory body supervising and regulating the insurance industry of Hong Kong.

• The government of Hong Kong proposed to establish Independent Insurance Authority (IIA), replacing the existing OCI as the country’s insurance regulator.

• 100% foreign direct investment (FDI) is permitted in the Hong Kong insurance industry.

• Composite insurance is not permitted in Hong Kong.

• Reinsurers are not subject to any authorization for operating in Hong Kong.

 Table of Contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions

2 Governance, Risk and Compliance
2.1 Legislation Overview and Historical Evolution
2.2 Latest Changes in Regulations
2.3 Legislation and Market Practice by Type of Insurance
2.3.1 Life insurance
2.3.2 Property insurance
2.3.3 Motor insurance
2.3.4 Liability insurance
2.3.5 Marine, aviation and transit insurance
2.3.6 Personal accident and health insurance
2.4 Compulsory Insurance
2.4.1 Motor third-party liability insurance
2.4.2 Employee compensation insurance
2.4.3 Building owners’ corporations third-party liability insurance
2.4.4 Professional indemnity insurance for insurance brokers
2.4.5 Civil aviation liability insurance
2.4.6 Fidelity insurance for licensed institutions dealing in securities and future contracts
2.5 Supervision and Control
2.5.1 International Association of Insurance Supervisors (IAIS)
2.5.2 The Office of the Commissioner of Insurance (OCI)
2.5.3 The Hong Kong Federation of Insurers (HKFI)
2.6 Non-Admitted Insurance Regulations
2.6.1 Overview
2.6.2 Intermediaries
2.6.3 Market practices
2.6.4 Fines and penalties
2.7 Company Registration and Operations
2.7.1 Types of insurance organization
2.7.2 Establishing a local company
2.7.3 Foreign ownership
2.7.4 Types of license
2.7.5 Capital requirements
2.7.6 Solvency margins
2.7.7 Reserve requirements
2.7.8 Investment regulations
2.7.9 Statutory return requirements
2.7.10 Fee structure
2.8 Taxation
2.8.1 Insurance premium or policy taxation
2.8.2 Withholding taxes on premium paid overseas
2.8.3 Corporate tax
2.8.4 VAT
2.8.5 Captives
2.9 Legal System
2.9.1 Introduction
2.9.2 Access to court
2.9.3 Alternative dispute resolution (ADR)

3 Appendix
3.1 Methodology
3.2 Contact Timetric
3.3 About Timetric
3.4 Timetric’s Services
3.5 Disclaimer

List of Tables
Table 1: Insurance Industry Definitions
Table 2: Hong Kong – Insurance Regulatory Framework Key Features
Table 3: Hong Kong – Life Insurance Regulatory Framework
Table 4: Hong Kong – Property Insurance Regulatory Framework
Table 5: Hong Kong – Motor Insurance Regulatory Framework
Table 6: Hong Kong – Liability Insurance Regulatory Framework
Table 7: Hong Kong – Minimum Cover for Aircraft Liability Per Accident Per Aircraft
Table 8: Hong Kong – Corporation Tax Rates for the Financial Year 2016

List of Figures
Figure 1: Hong Kong – Insurance Supervision and Control at Various Levels
Figure 2: Hong Kong – Insurance Regulatory Frameworks for Company Registration and Operation