| Regulatory Framework > Regulation
of Insurers |
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Section 25A of the Insurance
Companies Ordinance (Cap.41) requires an insurer carrying
on general business, other than a professional reinsurer and
a captive insurer, to maintain
assets in Hong Kong of an amount which is not less than the
aggregate of 80% of its net liabilities and the solvency margin
applicable to its Hong Kong general business.
The objective is to
ensure that, in the event of insolvency of an insurer, assets
will be available in Hong Kong to meet the claims of Hong
Kong policy holders. These claims are accorded a preferential
status under Hong Kong's insolvency law to those of ordinary
creditors.
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