Office of the Commissioner of Insurance

To provide general guidance for insurers, reinsurers, insurance agents and insurance brokers carrying or advising on long term business (hereinafter referred to as "insurance institutions") to institute anti-money laundering measures, the Insurance Authority ("IA") issued in 1993 a Guidance Note on Prevention of Money Laundering setting out the principles and practices that should be adopted by them. The Guidance Note was revised in 1997 and 2000. With the introduction of the revised Forty Recommendations and Special Recommendations on Terrorist Financing by the Financial Action Task Force on Money Laundering, the IA updated the Guidance Note again and issued the Guidance Note on Prevention of Money Laundering and Terrorist Financing in July 2005.

Guidance Note on "Fit and Proper" Criteria under the Insurance Companies Ordinance (Cap.41) (GN4)

The Insurance Companies Ordinance (Cap.41) ("ICO") imposes a "fit and proper" requirement on any person who intends to become, or has become a director or controller of an insurer. To enhance transparency of this regulatory requirement, the IA has issued a Guidance Note on "Fit and Proper" Criteria under the ICO for the information of all parties concerned. The Guidance Note sets out those factors that the IA will take into account in administering the said requirement.

Guidance Note on Application for Authorization to Carry on Insurance Business in or from Hong Kong (GN5)

Guidance Note on Reserving for Mortgage Guarantee Business (GN6)

Mortgage Guarantee Business, which is a new line of insurance business introduced to Hong Kong in early 1999, is distinct from other classes of general insurance business because of its long term nature and the potential accumulation of risks especially in times of severe economic downturn. Therefore, an insurer writing Mortgage Guarantee Business should be particularly prudent in providing adequate technical reserves in respect of this line of business. The IA has recently issued the above Guidance Note which aims at setting out the minimum standard expected of an insurer in setting aside technical reserves in respect of Mortgage Guarantee Business for the purposes of ensuring that it is able to meet its liabilities or fulfil the reasonable expectations of policy holders.

Guidance Note on the Reserve Provision for Class G of Long Term Business (GN7) (Issued in January 2001 and revised in December 2006)

Guidance Note on the Use of Internet for Insurance Activities (GN8)

With the advent of e-commerce, the insurance industry is increasingly engaging the Internet as a new way of doing business. To provide the industry with guidelines on the use of the Internet to conduct insurance activities, the Office of the Commissioner of Insurance ("OCI") has issued the above Guidance Note. It aims at better protecting the insuring public and ensuring the healthy development of the industry in the new information technology era.

Guidance Note on Actuarial Review of Insurance Liabilities in respect of Employees' Compensation and Motor Insurance Businesses (GN9)

Adequacy of the reserves set aside by an insurer is an important factor affecting the insurer's ability to meet its obligations for payment of claims, and to fulfil the reasonable expectations of policy holders. To ensure adequacy, the OCI has issued the above Guidance Note which requires insurers and reinsurers carrying on employees' compensation and/or motor insurance businesses to conduct actuarial review of reserves relating to such businesses which are the two important classes of statutory business.

Guidance Note on the Corporate Governance of Authorized Insurers (GN10)

As insurance business involves basically promises for delivery of services in the future, sound corporate governance of insurers is essential in instilling confidence of the insuring public and ensuring long term healthy development of the insurance industry. The OCI has therefore issued the above Guidance Note to set out the minimum standard of corporate governance that is expected of authorized insurers.

Guidance Note on Classification of Class C - Linked Long Term Business (GN11)

Guidance Note on Reinsurance with Related Companies (GN12)

Guidance Note on Asset Management by Authorized Insurers (GN13)

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