Insurance Law in Hong Kong
Insurance Law in Hong KongUpdated on Thursday 19th May 2016
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Insurers in Hong Kong
The insurance law in Hong Kong establishes the manner in which insurance companies and their intermediaries operate on the market. The city has a large number of approved companies that operate in this business field and they provide services for business insurance and reinsurance as well as packages for individuals.
General insurance premiums will include protection in case of accident and health problems, general liability, property damage, individual business or retirement scheme management.
The insurance industry is an important contributor to Hong Kong’s economy. Insurance companies offering services in the city must observe the legal framework and our lawyers in Hong Kong can give you detailed information about this aspect.
The insurance legislation in Hong Kong
The Insurance Authority belongs to the Office of the Commissioner of Insurance and is responsible for implementing the Insurance Companies Ordinance; it also has investigatory powers. The Authority may inspect the premises of an insurance agency in Hong Kong without a warrant, it can request documents or other data relevant to its investigation.
All insurance intermediaries in Hong Kong are subject to the direct control and supervision of the Insurance Authority. They must comply with the regime, regulations, and disciplinary procedures. Failure to do so results in fines.
Insurance Regulation in Hong Kong
Insurers in Hong Kong must be authorized by the Insurance Authority before they can commence any business in the city. Foreign companies can open a branch or a subsidiary in Hong Kong and they have the same rights as a local registered Hong Kong company.
Foreign insurance companies can open a branch in Hong Kong if they are originally incorporated in a country that has a comprehensive insurance and company law. The foreign company must also be under the supervision of a relevant insurance agency in that country.
The Insurance Authority releases various types of licenses, depending on the type of intermediary conducting the business. The law distinguishes between insurers, insurance agents, and insurance brokers.
If you want to open an insurance agency or want to know more about licensing and requirements on this market you can contact our law firm in Hong Kong.