Regulator issues codes for brokers, agents

The Hong Kong Insurance Authority has published the new Code of Conduct for Licensed Insurance Agents (Agents’ Code) and Code of Conduct for Licensed Insurance Brokers (Brokers’ Code). A two-month public consultation on the Codes was conducted in early 2019 and the Insurance Authority has issued the Codes together with the consultation conclusions.

The Codes will take effect immediately upon commencement of the new statutory regulatory regime for insurance intermediaries on 23 September 2019. To allow sufficient time for transition, the Insurance Authority has said in the consultation conclusions that it will adopt a flexible approach in considering insurance intermediaries’ compliance with the Codes in the initial few months but expects licensees to be fully compliant with the Codes from 1 January 2020.

The Codes each contain eight general principles that are of universal application and broadly reflect the new statutory conduct requirements for intermediaries codified in section 90 of the Insurance Ordinance.

The non-exhaustive standards and practices in the Codes provide further guidance on the application of the general principles.