On 17 August 2010 the China Insurance Regulatory Commission (the CIRC) issued basic guidelines for the internal controls at Chinese insurance companies, which include monitoring their allocation and management of insurance funds. read more
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The People's Bank of China (PBC) announced on 17 August 2010 a pilot scheme to permit Hong Kong and Macau insurers, banks and certain other financial institutions, with the approval of the PBC, to invest in the Chinese mainland's 48.8 trillion renminbi (US$7.2 trillion) interbank bond market. Each institution will receive a quota for Chinese mainland interbank bonds according to its individual situation. The move has been welcomed by the Hong Kong Monetary Authority (HKMA). read more
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The Government of the Hong Kong Special Administrative Region (the Hong Kong Government) is considering subsidising a separate insurance pool to cover Hong Kong residents at high risk of medical complications (defined as those with medical costs expected to be more than 200% of those of healthy individuals) or those with pre-existing medical conditions (high-risk individuals) who sign up to a proposed voluntary medical scheme (the Scheme) that will be generally open to all Hong Kong residents. read more
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On 11 July 2010 the China Regulatory Commission (the CIRC) stated that it proposed to remove restrictions on insurance companies in China in deciding the assumed (or guaranteed) interest rates for "conventional" (non-participating) life insurance policies in order to protect consumers' interests and encourage innovation in the sector. read more
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On 20 July 2010, the Hong Kong Special Administrative Region and Beijing signed an historic agreement allowing Hong Kong to become the first yuan clearing centre outside mainland China. Asia Insurance Review reports that insurers and wealth management companies stand to gain from the agreement. read more
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On 12 July 2010 the Secretary for Financial Services and the Treasury, Professor K C Chan, released a consultation paper entitled "Proposed Establishment of an Independent Insurance Authority". The insurance sector and the public have a 3 month consultation period (which ends on 11 October 2010) in which to provide their views. read more
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On 25 June 2010, the Securities and Futures Commission of Hong Kong (the SFC) published the new SFC handbook (the Handbook), which came into immediate effect. The Handbook was one of the introductions suggested in the Consultation Conclusions on Proposals to Enhance Protection for the Investing Public, published on 28 May 2010. The Handbook includes revised product codes for unit trusts and mutual funds and for investment-linked assurance schemes in addition to a new product code for unlisted structured investment products. read more
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The People's Bank of China (the POBC) announced on 19 June 2010 that the renminbi (RMB) was to exit the peg to the US dollar. China will now determine its exchange rate with reference to a basket of other currencies. read more
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On 26 May 2010, the China Insurance Regulatory Commission (the CIRC) announced that it is considering liberalising current restrictions on investments by People's Republic of China insurance companies in stocks and bonds. read more
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Domestic insurers in China are being encouraged by the China Insurance Regulatory Commission (the CIRC) to grow new business through electronic commerce in order to optimize the structure of sales channels and foster the growth of new business. read more
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The Office of the Commissioner of Insurance in Hong Kong has announced that in Q1 of 2010, gross premiums for general (non-life) insurance business grew 16.2% to HK$9.2 billion and net premiums grew 14.4% to HK$6.5 billion compared to Q1 of 2009. However, overall underwriting profits declined from HK$694 million to HK$559 million. read more
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In order to tap investor expectations of a rising yuan (RMB), insurers are preparing to launch yuan-denominated policies as a new product offering for insurers in the Hong Kong market. Insurance premiums make up almost 10% of Hong Kong's GDP, compared with just 3% of China's GDP. read more
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The China Insurance Regulatory Commission (the CIRC) has granted Lloyd's China a licence to write direct insurance. This is in addition to Lloyd's China's existing reinsurance licence (granted in March 2007). The announcement was made by Lord Levene, chairman of Lloyd's, on 19 May 2010 at the UK Pavilion at the World Expo in Shanghai. read more
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According to an estimate provided by Lloyd’s of London, over £6.2 billion worth of insurance coverage has been purchased by individuals and entities in connection with the 2010 FIFA World Cup, which begins today. Over half of that amount is for coverage for stadiums and training facilities, which reflects the vast amount of money that has been spent constructing and upgrading stadiums ($5.5 billion, according to the New York Times). read more
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China is considering reviving its plan to set up a super regulator in order to make the government's oversight of the financial sector more efficient and expedient and improve the lack of integration and co-ordination between existing regulators. This is especially important as the financial sector becomes increasingly integrated (for example it is now possible for banks to invest in insurance companies and vice versa). read more
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In World Harbourview Hotel Co. Ltd & Others v ACE Insurance & Others [2010] HKCFI 327, the High Court of the Hong Kong Special Administrative Region Court of First Instance considered a claim filed under insurance policies in respect of business interruption suffered as a result of the outbreak of Severe Acute Respiratory Syndrome (SARS) in 2003. read more
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PICC Property and Casualty Company (PICC), China's largest non-life insurer, reported an increase in profits to 1.78 billion yuan (US$260.8 million) as a result of a surge in China's stock market lifting the value of their investments and growth in insurance premiums received. PICC is exploring a number of ways to improve its solvency ratio, which currently sits at 111% having dropped 34% last year. read more
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On 12 April 2010, the IAIS published a guidance paper on the "treatment of non-regulated entities in group-wide supervision" (the Guidance), which is available here.
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The Governor of Guangdong Province, representing the Guangdong Provincial Government, and the Chief Executive of the Hong Kong Special Administrative Region (the SAR) signed a Framework Agreement on Hong Kong/Guangdong Co-operation (the Framework Agreement) at a signing ceremony in Beijing on 7 April 2010. read more
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The new Japanese Insurance Act (the Insurance Act), which was passed by the Japanese Diet in May 2008 came into force on 1 April 2010. The Insurance Act will regulate insurance contracts generally (although the Commercial Code will continue to regulate marine insurance). The Insurance Act represents the first significant revision of insurance law in Japan for about 100 years. read more
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The recent High Court judgment in Rondabosh International Ltd v China Ping An Insurance (Hong Kong) Co Ltd [2009] HKEC 2103 demonstrates the effect of an arbitration agreement in an insurance policy. read more
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The Office of the Commissioner of Insurance in Hong Kong (the OCI) reported that the Hong Kong insurance market posted a total underwriting profit of HK$2.2 billion (US283.5 million) for 2009. This represents a 46.6% increase over 2008. Overall, the sector enjoyed growth in general insurance (gross premiums increased by 5.7% to HK$28.6 billion and net premiums by 7.1% to HK$20.5 billion compared with the previous year, although the overall business growth was offset by a fall in marine business and goods-in-transit business), and non linked individual life and annuity lines (business rose 11.3% to HK$91.2 billion in 2009). read more
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Chan Kin-por, legislator representing the insurance sector in Hong Kong's Legislative Council, recently told the South China Morning Post that many customers and insurance agents have urged him to seek a regulatory change to help the launch of yuan-denominated policies as many people believe that the yuan will appreciate in value over the next few decades and yuan life insurance policies may bring policyholders 20% to 50% growth in terms of investment returns and valuation gains. read more
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According to the Statistics on China Insurance Business for 2009 recently published by the China Insurance Regulatory Commission (CIRC), total insurance premiums in China received in 2009 amounted to RMB 1.11 trillion, up 13.8% from 2008. read more
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The Supreme People’s Court of the People’s Republic of China recently issued a letter on 30 December 2009 to all Higher People’s Courts in mainland China confirming that ad hoc arbitral awards made in Hong Kong and those arbitral awards made in Hong Kong by the International Court of Arbitration of the International Chamber of Commerce and other foreign arbitration institutions are enforceable in mainland China in accordance with the Arrangement concerning Mutual Enforcement of Arbitral Awards between mainland China and the Hong Kong Special Administrative Region signed in 1999 (the "Arrangement"). read more
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In September 2009, the Hong Kong Life Insurance Council (HKLIC) introduced a set of new requirements in relation to the sale of Investment-linked Assurance Scheme (ILAS) products. read more
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The Hong Kong Federation of Insurers (HKFI) announced on 6 January 2010 that Mr Alex W Y Chu, Chief Executive of HSBC Life (International) Limited, has been unanimously elected Chairman of the Life Insurance Council to fill the vacancy arising from the death of Mr K.Y. To. read more
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In the recent case of Leung Chee Kuen Carol Macrady v American International Assurance Co (Bermuda) Ltd [2009] HKEC 1826, the court was asked to consider whether the insurance company AIA had wrongfully terminated its relationship with the plaintiff. read more
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The China Insurance Regulatory Commission (CIRC) released on 25 December 2009 Draft Tentative Measures for the Administration of the Use of Insurance Funds (the "Draft Tentative Measures") for public consultation. This public consultation closed on 4 January 2010. read more
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The China Insurance Regulatory Commission (CIRC), the insurance industry regulator in the People's Republic of China, issued a circular on 31 December 2009, permitting insurance institutions to invest in corporate debentures which are issued in the domestic inter-bank market provided that the corporate debentures satisfy the relevant applicable requirements and have a credit rating of AAA or a long-term credit rating equivalent to AAA assigned by domestic credit rating institutions. read more
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The Chinese Ministry of Finance (MoF) and the China Insurance Regulatory Commission (CIRC), the insurance industry regulator in the People's Republic of China, have jointly issued detailed rules requiring insurance companies to adopt new accounting standards in compiling their 2009 financial reports. read more
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According to recent reports in the New York Times and Financial Times, A.I.G. plans to list its Asian life insurance unit, American International Assurance (“A.I.A.”), on the Hong Kong stock exchange by year’s end. The IPO, which is expected to raise as much as $20 billion, would be one of the largest public stock offerings in the exchange’s history. read more
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Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department recently published its latest Newsletter, Insurance & Reinsurance Review - December 2009, which contains eight articles about various topics in the insurance and reinsurance industry. read more
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According to the Provisional Statistics on Hong Kong Insurance Business for 2008 recently published by the Hong Kong Insurance Authority (IA), gross premiums for general insurance business increased by 11.3% to HK$27 billion and net premiums were up 12.3% to HK$19.2 billion, compared with 2007. read more
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Ernst & Young ("E&Y") has settled the Akai Holdings ("Akai") case with Akai’s liquidator, Borrelli Walsh. In the case, E&Y was accused of negligence for failing to avert Akai’s collapse in 2004. read more
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The Hong Kong Securities and Futures Commission ("SFC") recently issued a circular clarifying that insurers, corporate insurance brokers and individual insurance intermediaries are not required or permitted to be licensed by the SFC under the provisions of the Securities and Futures Ordinance ("SFO") (Chapter 571 of the Laws of Hong Kong) to engage in promoting, offering or selling investment linked assurance schemes ("ILAS") to the Hong Kong public (the "Circular"). read more
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On 14 September 2009, Ms. Annie Choi assumed the post of Commissioner of Insurance, succeeding Mr. Clement Cheung who became Postmaster General on the same day. read more
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Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department recently published its latest Newsletter, Insurance & Reinsurance Review - September 2009, which contains nine articles about various topics in the insurance and reinsurance industry. read more
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On 26 June 2009, a solicitor and a recovery agent were found guilty by the District Court for offering a "no win, no fee" deal to a mother seeking compensation for her son, who was severely injured in a road traffic accident. The recovery agent was also found guilty of champerty, that is, negotiating to receive a share of the proceeds of litigation in which he had no interest. read more
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On 28 February 2009, the National People’s Congress resolved to amend the China Insurance Law. This was the second revision since the insurance law was first enacted in China on 1 October 1995. The amendment will come into force on 1 October 2009 and will constitute a comprehensive reform of the present insurance law. read more
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Insurance companies in China are undergoing a major shake-up as smaller and weaker insurers are struggling to meet the heightened solvency requirements introduced by the China Insurance Regulatory Commission ("CIRC") in December 2008 in light of the economic crisis. The aims of these requirements are to increase risk management and efficiency in the insurance sector. read more
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The Government of Hong Kong has long planned to establish a safety net for Hong Kong policy holders in the event of an insurance company collapse. The first consultation exercise on a safety net for policy holders was held in 2003 where it was suggested two protection funds be established – one for life insurance and the other for general insurance, but the scheme was put on hold due to a lack of support from the insurance industry. read more
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HSBC Insurance (Asia) Limited ("HSBC Insurance"), a member of the HSBC Group, has received regulatory approval from the China Insurance Regulatory Commission ("CIRC") to form a joint venture with National Trust Limited ("National Trust") in mainland China with the aim of boosting its insurance income and expanding its wealth management businesses. read more
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Anglo Starlite Insurance Co. Ltd. (the "Company") was placed into provisional liquidation on 8 May 2009 following an investigation by the Hong Kong Insurance Authority ("IA"). Peter Whalley and Jan Blaauw of PricewaterhouseCoopers were appointed as joint and several provisional liquidators. read more
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The United States International Trade Commission recently released its report Property and Casualty Insurance Services: Competitive Conditions in Foreign Markets. In preparing its report, drafted at the request of the United States Trade Representative of the Office of the President of the United States, the USITC reviewed non-tariff restrictive measures in 72 countries. read more
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Mergers and acquisitions (M&As) and joint ventures (JVs) both represent mechanisms for consolidation within the insurance market and new entry into that market. A number of issues involved in consolidation as well as issues relevant to new entrants in the insurance industry, principally in Hong Kong, are considered in this booklet. read more
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Insurance intermediaries in Hong Kong are largely self-regulated under a framework supported by legislative provisions contained in the Insurance Companies Ordinance (Ordinance). The Ordinance prohibits a person from holding himself out as an insurance agent or insurance broker unless he is appointed or authorised respectively. A person is also prohibited from holding the positions of appointed insurance agent and authorised insurance broker at the same time. read more
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Litigators in Hong Kong are getting to grips with the shake up of its High Court Rules as a result of the recent Civil Justice Reform initiative ("CJR"). The changes came into force in Hong Kong on 2 April 2009. read more
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The China Insurance Regulatory Commission (CIRC) has recently issued a Circular aimed at expanding the scope of domestic insurers’ bond investments and enhancing their internal risk management mechanisms (the "Circular"). read more
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In a letter to the G20 members, the Geneva Association, an organization comprised of CEOs from the world’s leading insurance and reinsurance companies, provided recommendations for more effective regulation of the insurance and reinsurance industry, along with information and analysis regarding the differences between the insurance and reinsurance industry and that of the banking industry. read more
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On Tuesday, March 31, 2009, New York State Insurance Department (“NYSID”) Superintendent Eric Dinallo announced that the NYSID entered into a Memorandum of Understanding (“MoU”) with the Autoridade Monetária de Macau (“AMCM”), Macau’s insurance regulator. read more
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On March 9, 2009, the International Association of Insurance Supervisors (“IAIS”) released an Issues Paper on Group-Wide Solvency Assessment and Supervision (the “Issues Paper”). The purpose of the Issues Paper is to serve as a framework for the development of future papers providing guidance on group-wide solvency assessment and supervision on a global scale. read more
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On 11 March 2009, the District Court of Hong Kong reached its decision in a landmark trial, convicting five defendants of a total of 12 charges of "insider dealing" under section 291 of the Securities and Futures Ordinance, Cap.571 ("SFO"). read more
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Premiums on direct and reinsurance inward business in Hong Kong grew by over 11% in the first nine months of 2008, according to the latest figures available from the Office of the Commissioner of Insurance (OCI). read more
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John Hughes and Machua Millett of EAPD have recently released an updated version of their whitepaper entitled Venture Capital, Private Equity and Hedge Funds: Structure and Risk Exposures. The whitepaper leads the reader through the structure and characteristics of venture capital, private equity and hedge funds, presents the latest market trends in these areas and then discusses the risk exposures for such funds and related entities. read more
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In addition to the requirements for an insurer to be authorised to carry on insurance (whether general business or long term business and whether as a direct insurer, composite insurer, reinsurer or captive insurer) in or from Hong Kong (as described in our companion guidance note on the “Authorisation of insurers in Hong Kong”) there are a number of continuing regulatory requirements that the insurer will need to satisfy on authorisation and thereafter. read more
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To carry on any class of insurance business in or from Hong Kong, companies must be authorised under section 8 of the Insurance Companies Ordinance. In order to be authorised, insurers must meet certain statutory conditions and satisfy certain guidelines issued by the Insurance Authority (IA). read more
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An insurer involved in a dispute or proceeding outside China but in which a Chinese witness may need to give a deposition or statement cannot obtain that deposition or statement in China. China does not permit the taking of depositions or witness statements (even from willing witnesses) in China for a case pending overseas. However, such depositions and witness statements may be taken in Hong Kong. read more
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A company has been incorporated to manage China's insurance protection fund (IPF) (previously controlled by the China Insurance Regulatory Commission (CIRC)) as part of its response to the global financial problems. The IPF protects policyholders when insurers go bankrupt and also companies that take over insolvent insurers. read more
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PwC published a report in September 2008, which gives an insight into how foreign insurance companies within the Chinese market view industry trends, the challenges they are facing and how they consider the insurance market in China will grow and evolve over the next three years. read more
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The Hong Kong insurance industry recorded growth in total gross premiums during 2007 of over 26 percent, newly released figures reveal. read more
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On 24 September 2008, the High Court of Hong Kong sanctioned the transfer of the long-term business of Transamerica Occidental Life Insurance Company ("TOLIC") carried on from Hong Kong to Transamerica Life Insurance Company ("TLIC") which had established a Hong Kong branch for the purpose. read more
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In an effort to formally expand EAPD’s client service capacity into Asia, the Firm is pleased to announce the opening of a Hong Kong office by having entered into an association agreement with the Hong Kong firm Lister Swartz. read more
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Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar on the above topic on Monday, September 29, 2008 at 12:00 PM EDT / 5:00 PM BST. read more
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Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar on the above topic on Monday, September 29, 2008 at 12:00 PM EDT / 5:00 PM BST. read more
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Today, Thursday, August 28, Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar entitled "Insurance Implications of Climate Change". This 60 minute webinar will comprise a discussion of the global legal framework which recognizes the reality of climate change. read more
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On Thursday, August 28, Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar entitled "Insurance Implications of Climate Change". This 60 minute webinar will comprise a discussion of the global legal framework which recognizes the reality of climate change. read more
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Today is the one-year anniversary of the launch of InsureReinsure.com and we mark the occasion by adding an additional feature for our readers. Beginning today, on the left-hand side of your screen, you will see a new link allowing you to "subscribe" to InsureReinsure.com to receive emails each workday morning with links to the prior day’s posts. read more
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On 28th November 2007 the China Insurance Regulatory Commission (CIRC) issued a new regulation, "Circular Concerning Risk Issues in Reinsurance Business" (the "Circular"). The Circular tightens up controls on foreign reinsurers to minimise risks in reinsurance transactions by setting out specific financial rating and capital requirements and further evidences the CIRC's commitment towards the steady and regulated development of the Chinese reinsurance market. read more
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Today marks a new beginning at InsureReinsure.com and we want to welcome all of our new readers to this Blog. read more
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Lloyd’s recently issued a press release that it has begun offering a new type of cover – an event cancellation policy that will indemnify insureds for their losses if Christmas is cancelled, postponed, interrupted, curtailed or relocated due to the Grinch’s actions. read more
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Today is the sixth-month anniversary of the launch of InsureReinsure.com and we want to thank all of you for your readership and support. read more
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