A total makeover of the Hong Kong insurance supervisory system?

Insurance regulation in Hong Kong is under review. On 10 July 2010 the Hong Kong Financial Services and Treasury Bureau published a Consultation Paper and a Frequently Asked Questions handout on its website, and on 19 July 2010 the Legislative Council’s Panel on Financial Affairs published a Discussion Paper. The proposals set out in these documents are discussed by Marie Kwok (Of Counsel) and Wynne Mok (Senior Associate) of Norton Rose.

The background

As long ago as 2007/2008, amidst the financial tsunami, the Chief Executive of Hong Kong Special Administrative Region saw the need to establish an independent regulatory body to replace its Office of the Commissioner of Insurance (‘OCI’). The OCI, headed by the Insurance Authority (‘IA’), is the only financial services regulator in Hong Kong still operating within the government structure. It also causes Hong Kong to be out of step with the international practice for financial regulators to be independent of the government.