ComplianceOne Insurance Newsletter – Oct 2024
The topics discussed in this monthly newsletter are as follows:
1. Hong Kong Insurance Authority Unveils InsurTech Forum at FinTech Week 2024
2. Guangdong authorities probe illegal cross-border insurance sales
IA News Updates
1. InsurTech Forum Unveiled at Hong Kong FinTech Week 2024
The IA unveiled the InsurTech Forum on Day 2 of the Hong Kong FinTech Week 2024, co-hosted with Invest Hong Kong. This event brought together industry leaders and technology experts for insightful dialogue on various topics.
Mr. Clement Cheung, CEO of the IA - keynote presentation
Emphasized the dire consequences of ignoring climate change and cybersecurity threats.
Efforts to foster an ecosystem for insurance-linked securities, introduce the Cyber Resilience Assessment Framework, and commission a survey on AI adoption in the insurance sector.
Outlined the IA's pragmatic approach to promoting AI adoption, stressing the importance of human oversight to complement AI's powerful capabilities in client acquisition, policy underwriting, customer service, claims settlement, and fraud detection.
SIGNIFICANCE:
The InsurTech Forum highlighted panel discussions on AI, data analytics, and next-generation innovation, reflecting the growing trend and increasing demand for AI-driven solutions. Emphasizing the necessity for a robust yet flexible regulatory framework, the forum underscored the importance of ensuring the fair, transparent, and ethical use of AI in the rapidly evolving fintech landscape.
Cross-Border News Updates
2. Guangdong authorities probe illegal cross-border insurance sales
In Accordance with Cailian Press on 13 Oct 2024, industry insiders have reported that the Guangdong Financial Regulatory Bureau has launched a special campaign to investigate illegal sales of overseas insurance products and cross-border insurance violations among banks and insurance institutions (excluding Shenzhen). This initiative aims to ensure regulatory compliance and protect consumer interests.
This crackdown aligns with the HKIA circular issued on 22 May 2024, which targets non-compliant business models that incentivize unlicensed selling of long-term insurance policies to Mainland China visitors. The circular emphasizes the importance of licensed intermediaries and proper conduct to maintain market integrity.
Potential Impact in Hong Kong
The investigation by the Guangdong regulator could affect Hong Kong insurance industries if any unlicensed third-parties participated with any regulated activities, such practices would be considered illegal, and companies involved could face penalties and stricter oversight.
SIGNIFICANCE:
Both regulators aim to make sure that regulated activities are conducted and monitored by the appropriate regulatory authority within their respective jurisdictions. Taking significant steps to ensure the integrity of the insurance market and protect consumers. These measures reflect a broader commitment to maintaining a robust and transparent financial ecosystem in the region.
[End of ComplianceOne Insurance Newsletter – October 2024]
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