Insurance commissioner helps restore faith in sector

Industry seen to rebound by responding well to government's measures in regaining consumer confidence.

The Office of the Commissioner of Insurance has helped restore consumer confidence and enhance policyholder protection in the wake of the 2008 financial crisis, according to a government report.

Releasing the office's annual report on Monday, Commissioner of Insurance Annie Choi said the Government has worked with the insurance industry to lift consumer confidence which plummeted to a record low in last year's first quarter.

It implemented new suitability assessment requirements, post-sale control, a new examination syllabus and training requirements, and the extension of the cooling-off period. She said the last quarter of 2009 saw business rebound.

"I am glad the industry has responded quickly and has introduced timely measures," she said.

The office has seen the need for an overhaul of the regulatory framework and the Government has proposed forming an independent insurance authority. A policyholders' protection fund is also being planned.

As at December 31 last year, 171 authorised insurers, 61,114 appointed insurance agents and 7,932 authorised brokers were operating in Hong Kong.