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Given a high degree of market fragmentation and intensive competition, the Office of the Commissioner of Insurance (OCI) will place greater vigilance upon the readiness and capability among insurers to put in place an effective asset-liability matching mechanism and to enforce a rational pricing strategy, the Commissioner of Insurance, Mr Clement Cheung, said today (September 4).
Releasing the OCI Annual Report 2008 today, Mr Cheung said benefiting from steady growth in the past two decades, insurance had become an important source of social harmony and a major pillar of our economy. He noted that dampened desire for wealth management had switched consumer priority from return maximisation to capital preservation and would eclipse the popularity of investment linked policies, whereas changing demographics and stronger awareness should continue to drive the demand of medical policies.
"In a bid to restore public trust and confidence, we are making good progress on the establishment of a policyholders' protection fund, the introduction of an enhanced client needs analysis process and the upgrading of examination syllabus for intermediaries intending to engage in the sale of investment linked policies," Mr Cheung said.
"Despite setbacks and disruptions suffered in the past year, our visionary leaders have the chance to turn things around and lay the foundation for an era of alliance and partnership. If managed properly, this painful but yet necessary process of adjustment would steer us onto a robust path of shared prosperity."
Mr Cheung stressed that Hong Kong must exploit opportunities availed by "Outline of the Plan for the Reform and Development of the Pearl River Delta (2008-2020)" and step up co-operation with Guangdong to open up new frontiers.
According to the OCI Annual Report 2008, as at December 31, 2008, there were 175 authorised insurers, 59,678 appointed insurance agents (including their responsible officers and technical representatives) and 7,760 authorised brokers (including their chief executives and technical representatives) operating here in Hong Kong.
The OCI Annual Report 2008 provides a summary of insurance statistics and an overview of key activities undertaken by the Insurance Authority. People may obtain copies of the annual report from the OCI website on (http://www.oci.gov.hk).
Ends/Friday, September 4, 2009
Issued at HKT 16:02
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