Insurance Authority to be set up in Hong Kong

The government is identifying candidates to be the chairman and directors of the high-powered insurance watchdog to be set up by the end of the year, the South China Morning Post has learnt.

Eddie Cheung Kwok-choi, the deputy secretary for financial services and the treasury, unveiled the government's blueprint for the proposed Insurance Authority.

"The establishment of the Insurance Authority will offer protection to policyholders and introduce appropriate regulation for all 80,000 insurance salespeople," Cheung said.

In July, legislators passed a law to set up the authority, which will be an independent regulator like the Securities and Futures Commission.

It will replace the Office of the Commissioner of Insurance, which regulates insurance companies but not salespeople. The new body will oversee insurers and agents.

Some insurance agents have expressed concern the new regulator will be too powerful and that the maximum fine of HKD10 million for misconduct is too high.