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Key legislative proposals on establishment of IIA consultation conclusions published

     The Government today (June 26) published the consultation conclusions on the key legislative proposals for the establishment of an independent Insurance Authority (IIA).

     The policy objectives of establishing the IIA are to modernise the regulatory infrastructure of the insurance industry to provide better protection for policyholders, facilitate the stable development of the industry, and align with international practice.

     The Government first consulted the public on the broad framework for the establishment of the IIA in 2010. The conclusions of the first consultation and detailed proposals were published in 2011, followed by a further consultation on the key legislative proposals from October 2012 to January 2013.

     The Government received 558 written submissions. Counting duplicates of three templates as three submissions, there are 58 submissions in total.

     "After considering respondents' comments, we have refined our proposals including the draft legislative provisions governing the constitution of the IIA, the appointment of responsible officers, certain conduct requirements, the specified suspension power, and relevant licensing and enforcement arrangements to facilitate compliance while ensuring effective enforcement," a spokesman for the Financial Services and the Treasury Bureau said.

     "We thank the respondents for their useful comments and have taken on board their suggestions as far as practicable," the spokesman said. "The establishment of the IIA is the most significant reform initiative for the insurance industry since the passage of the Insurance Companies Ordinance (Cap. 41) in 1983. With the benefit of respondents' constructive comments and suggestions, we have refined our proposals for introduction into the Legislative Council. This represents a major step forward in the establishment of the IIA," the spokesman continued.

     "The Government and stakeholders share the common objective of enhancing public confidence and professionalism in the insurance industry to make it more competitive. The refined proposals seek to protect the policyholders without stifling market innovation. We will continue to engage the industry, including insurance companies, insurance intermediaries and self-regulatory organisations, in taking forward the legislative process," the spokesman added.

     The Government is finalising a bill to amend the Insurance Companies Ordinance based on the refined legislative proposals.

     "We plan to introduce the amendment bill into the Legislative Council by end 2013 with a view to setting up the IIA in 2015," the spokesman added.

     The consultation conclusions are published on the website of the Financial Services and the Treasury Bureau ( A brief summary of the major issues raised and the Government's corresponding responses is at Annex.

Ends/Wednesday, June 26, 2013
Issued at HKT 16:13


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