Question on continue to engage the industry on proposals on the establishment of an independent Insurance Authority in the Estimates of Expenditure 2011-12 by Hon KP Chan:
According to Head 148 – Government Secretariat: Financial Services and the Treasury Bureau (Financial Services Branch), the Administration will prepare detailed proposals on the establishment of an independent Insurance Authority and engage stakeholders in the process. The Insurance Authority is expected to come into operation in 2013-14 subject to the proposals being endorsed by the Legislative Council. In this connection, please advise this Committee whether, given the existing manpower stringency of the Office of the Commissioner for Insurance, the Government will earmark resources for the purpose of increasing the manpower of the Office during the interim period so as to ensure that its day to-day operation will not be affected. If yes, what are such resources?
Asked by: Hon. CHAN Kin-por
The Government has completed the public consultation on the proposed establishment of an independent Insurance Authority (IIA) in the fourth quarter of 2010. We are now analysing the views collected from the insurance industry and the general public. We aim to announce the consultation conclusions within the first half of this year, and will continue to engage the industry and other stakeholders in developing detailed proposals.
To strengthen the prudential regulation of insurance companies and to prepare for implementation of the proposed anti-money laundering regulatory regime for the financial sector, the Office of the Commissioner of Insurance (OCI) has recruited 26 staff (composed of 3 Senior Managers, 9 Managers, 9 Assistant Insurance Officers and 5 support staff) since 2010. The OCI will review its staffing situation from time to time to ensure that adequate resources are allocated to carry out its regulatory functions.