Consumer Protection
The Office of the Commissioner
of Insurance (“OCI”), in cooperation
with the Consumer Council and insurance industry
implements or supports measures to enhance
market transparency, good industry practices
and the insuring public's understanding of
insurance.
Market Transparency
Policyholders and insurance industry need
timely access to statistical information to
assist them in appraising market performance
and making financial decisions. To enhance
market transparency, the OCI regularly publishes
insurance statistics on its homepage, newsletters
and annual reports.
Every year, the OCI compiles statistics on
the underwriting performance of Hong Kong general
business based on the audited Hong Kong General
Business Returns of insurers. Extensive
data covering premiums, underwriting expenses,
claims experiences as well as underwriting
result for each class of business, distinguished
between direct business and reinsurance inward
business, are published. Key business figures
of individual insurers are also released.
To better assist general insurers in their
assessment of the claims cost of two compulsory
lines of insurance business, namely employees'
compensation ("EC") business and
motor vehicle business, the OCI also publishes
additional statistics for this purpose. These
include annual statistics on the gross premiums,
gross claims paid and gross outstanding claims
development data, broken down by trade occupation
for EC business, and by type of vehicle, type
of coverage, and nature of claims for motor
vehicle business on an aggregate basis.
Every quarter, the OCI publishes provisional
general business statistics on the underwriting
performance for each class of direct and reinsurance
inward business, under which direct Accident & Health
business is further broken down into "medical" and "non-medical" business
and EC business into "construction", "restaurants
and hotels" and "others" business.
The provisional statistics on the underwriting
performance of motor vehicle business broken
down by type of vehicle are also published
quarterly.
Quarterly provisional long term business statistics
have been collected in the Hong Kong Long Term
Business Quarterly Returns which include statistics
on new business, in-force business, terminated
policies, reinsurance business, policy replacements
and individual policies issued to Mainland
visitors.
Newsletter "ILens"
Launched in May 2000, the bilingual “ILens”is
instrumental in strengthening regulatory transparency
and communication among the OCI, the insuring
public and the insurance industry. Readership
comprises members of the general public, insurance
practitioners, academics, mass media and other
financial services regulators.
Reporting on the latest market performance
of the local insurance market, “ILens”contains
feature articles, in each issue, which focus
on specific topics like corporate governance,
information technology, reinsurance, life insurance,
bancassurance, money laundering, premium volatility,
quality customer service, tsunami claims, travel
insurance, catastrophe insurance, title insurance,
investment-linked insurance, all being core
issues of interests to the insurance sector
and the insuring public. Relevant case
studies are published to heighten the pubic
awareness of insurance, alertness of fighting
insurance frauds and misconduct and developments
in the insurance field.
Copies of “ILens”are available
free of charge from the OCI, the District Offices
of the Home Affairs Department and the Consumer
Council, as well as electronic version from
the OCI’s homepage.
Public Educational Campaign
To provide consumer guidance for the insuring
public, the OCI publishes booklets on insurance
intermediaries and a series of educational
pamphlets, e.g. “Buying Insurance –What
you need to know”, “Life Insurance
Policy Replacement –What you need to
know”, and “Travel Insurance –What
you need to know”. TV/Radio Announcements
in public interest (APIs) are also launched
to reinforce the educational campaign.
To promote public’s awareness in travel
insurance, the new announcements of public
interests - Travel Insurance Means Travel Reassurance
TV announcement prepared by Information Services
Department was also linked to and available
for viewing on OCI’s homepage as from
July 2007.
The Independent Commission Against Corruption,
with an aim to promote professional ethics
and corruption prevention for the finance sector,
joined hands with the OCI and a number of insurance
industry bodies and commenced to prepare series
of seminars and training kits aiming to be
launched in the coming year for insurance practitioners.
Other Measures for Consumer Protection
To enhance consumer protection, a series of
measures have been taken jointly by the OCI
and the insurance industry. These measures
include:
- Consumer Protection Declaration
Form ("CPDF")
The
CPDF is introduced under the Code of Practice
for Life Insurance Replacement (“Code”)
issued by the insurance industry as a self-regulatory
measure to prevent twisting of life policies. It
should be completed and signed to evidence
that an insurance intermediary has clearly
explained to a life policyholder the consequences
and potential disadvantages of replacing
an existing policy. A life policy applicant
is also required to declare in the CPDF that
he/she has received a copy of the OCI’s
educational pamphlet “Life Insurance
Policy Replacement –What you need to
know”. In 2006, the Code was revised
to keep pace with the rapid market developments. Under
the new Code, definition of life insurance
policy replacement has been extended to cover
the situation where a substantial part (i.e.
50% or above) of the guaranteed cash value
of the existing policy was reduced or would
be reduced.
- Cooling-Off Period for Long Term
Insurance Policies
Policyholders are given a cooling-off
period to review the terms and conditions
of their long term insurance policies. The
cooling-off period is 21 days from the date
of signing the insurance application form,
14 days from the issue date of a policy,
5 days after the delivery of the policy to
the policyholder or his/her representative,
or in the case of policy replacement 14 days
after the date on which the CPDF is delivered
to the insurer of the policy replaced, whichever
is the latest. The policyholder has
a right to cancel the policy and obtain a
full refund of the insurance premium (after
taking into account any market value adjustment
as applicable) if he/she changes his/her
mind within that period.
- Illustration Standards for Long
Term Insurance Policies
The insurance industry works with
the relevant regulatory authorities in developing
illustration standards to enhance the transparency
of life policies. The standards provide
prospective policyholders with a summary
of insurance benefits, investment returns
and surrender values. This illustration
shall not only reduce potential market malpractice,
but also enable prospective policyholders
to make informed decisions.
- Code of Conduct and Code of Practice
As part of the self-regulatory initiatives
taken by the industry, the Hong Kong Federation
of Insurers has published the Code of Conduct
for Insurers and the Code of Practice for
the Administration of Insurance Agents. These
Codes aim to promote good practice among
insurers in the conduct of their insurance
business and the administration of their
insurance agents.
Enquiries and Complaints
Members of the public may contact the following
organisations for enquiries and complaints:
| Subject
Matter |
Name
of Organisation |
- Insurers
- Insurance brokers authorised by the
Insurance Authority
- Other matters relating to the supervision
of the insurance industry
|
- Office of the Commissioner of Insurance
(Insurance Authority)
Address: 21/F., Queensway
Government Offices, 66 Queensway, Hong
Kong
Telephone: 2867 2565
Fax: 2869 0252
E-mail: iamail@oci.gov.hk
Website: http://www.oci.gov.hk
|
|
|
- The Insurance Agents Registration
Board
Address: 29/F., Sunshine
Plaza, 353 Lockhart Road, Wanchai,
Hong Kong
Telephone: 2520 1868
Fax: 2520 1967
E-mail: hkfi@hkfi.org.hk
Website: http://www.hkfi.org.hk
- The insurers concerned
|
- Insurance brokers who are members
of approved bodies of insurance brokers
|
- The Hong Kong Confederation of Insurance
Brokers
Address: Room 308,
3/F, St. George’s Building, 2
Ice House Street, Central, Hong Kong
Telephone: 2882 9943
Fax: 2890 2137
E-mail: info@hkcib.org
Website: http://www.hkcib.org
- Professional Insurance Brokers Association
Address: Room 1406-07,
Kai Tak Commercial Building, 317-319
Des Voeux Road Central, Sheung Wan,
Hong Kong
Telephone: 2869 8515
Fax: 2770 2372
Email: info@piba.org.hk
Website: http://www.piba.org.hk
|
- Claims dispute arising from personal
insurance policies (with dispute amount
not exceeding $800,000, with effect
from 1 February 2006)
|
- The Insurance Claims Complaints Bureau
Address: 29/F., Sunshine
Plaza, 353 Lockhart Road, Wanchai,
Hong Kong
Telephone: 2520 2728
Fax: 2520 1967
E-mail: iccb@iccb.org.hk
Website: http://www.iccb.org.hk
|