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Following is the speech by the Acting Secretary for Financial Services, Mrs Rebecca Lai, in moving the committee stage amendments to Clauses 2, 3 and 4 of the Insurance Companies (Amendment) Bill 2000 in the Legislative Council today (May 24):

Madam President,

I move that Clauses 2, 3 and 4 of the Bill be amended as set out in the paper circulated to Members.

The Insurance Companies (Amendment) Bill 2000 serves two purposes: one is to enhance the transparency of the insurance market in Hong Kong by allowing the Insurance Authority (IA) to disclose financial and statistical information of individual insurers when it is in the interests of the insuring public to do so; the other is to cater for the needs of overseas insurers by empowering the IA to accept actuarial standards which are comparable to those prescribed by legislation for compliance by the appointed actuaries of long term business insurers.

In view of the proposals from the Legal Service Division of the Legislative Council Secretariat, we now move three amendments to clarify certain provisions in the Bill and make technical amendments.

The first one is a technical amendment to move the proposed provision in Clause 2 of the Bill for an actuary to comply with the standards from section 15(1)(b) to a new Section 15C.

Amendment 2(a), which amends Clause 3 of the Bill, clarifies that if the IA discloses the financial and statistical information submitted by an individual insurer or Lloyd's in accordance with the requirement proposed in the Bill, those who receive the information can disclose such information and will not be subject to the existing provision on disclosure of information without consent. Amendment 2(b), which also amends Clause 3 of the Bill, aims to clarify the restriction that the IA shall not disclose any information of any individual policy holder will not apply to the disclosure of information for criminal, civil or other court proceedings for the purpose of existing Section 53A(2), 3(b) and (c). In addition, the Amendment provides that apart from the IA, the restriction on disclosure also applies to a person employed or authorized by or assisting the IA.

To tally with Amendment 1, Amendment 3 makes consequential amendment to Clause 4 of the Bill.

Thank you, Madam President.

End/Wednesday, May 24, 2000

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