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In the face of the changing public expectations and international financial landscape, Hong Kong has to ensure that it does not lag behind the rest of the world in its regulatory framework.
Speaking at a symposium organised for the Asian insurance industry in Dubai today (September 24), the Commissioner of Insurance, Ms Annie Choi, said that it was an important international regulatory principle to have financial regulators financially and operationally independent of the Government.
"If Hong Kong wants to maintain our position as an international financial centre, we must align with this international practice," Ms Choi said.
In this regard, the Financial Services and the Treasury Bureau launched a three-month consultation on July 12, 2010, on the proposed establishment of an independent insurance authority (IIA). The proposed authority will directly license and supervise insurance intermediaries, enhance protection of insurance policyholders and facilitate the stable development of the insurance industry.
Ms Choi explained that nowadays members of the public had high expectations of the quality of financial regulation, and there is increasing concern about perceived and real conflict of interest in the self-regulatory system currently adopted in Hong Kong's insurance industry.
"While the Government recognises the efforts and contributions of the three self-regulatory bodies and industry/non-industry members serving on them, we need to move ahead with the changing financial landscape and public expectations. In fact, most other international financial centres have gone through the same process by going forward from a self-regulatory regime to direct regulation of intermediaries by an independent regulator." she said.
She urged members of the insurance industry to express their views proactively and facilitate rational discussions of the proposed IIA.
"Insurance intermediaries in Hong Kong have always been well-known for their professionalism, their positive attitude and their proactiveness.
"We maintain an open mind to the industry's concerns, suggestions and counter-proposals. We will listen and duly consider all feedback and proposals," Ms Choi added.
Ends/Friday, September 24, 2010
Issued at HKT 17:18
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