In October 2019, the Insurance Authority (“IA”) issued a stakeholder discussion paper (“Discussion Paper”) on proposals to update the approach to supervise insurance groups (referred to as Group-Wide Supervision (“GWS”)); and invited the Law Society to comment on the proposed GWS framework.
By the proposed GWS framework the IA aims to ensure Hong Kong’s insurance regulatory system remains aligned with the international developments. The IA notes in particular the International Association of Insurance Supervisors (IAIS) has recently revised its Insurance Core Principles to include new international standards at the group-wide level, including the Internationally Active Insurance Groups (IAIGs). The proposed GWS framework, in broad terms, is intended to allow the IA to have effective and robust supervisory mechanisms for insurance groups.
The Council has reviewed the Discussion Paper with the assistance of the Insurance Law Committee. The Law Society has made a submission on the consultation questions posed. The Law Society agrees in principle that the proposed GWS framework should be broadly principles-based and outcome focused. The full submission can be found on the Law Society’s website: