New HK insurance watchdog makes senior appointments

The Insurance Authority (IA), Hong Kong’s new independent industry watchdog, has announced a number of senior appointments before it commences operations in late June. The appointments include John Leung Chi-yan, the current head of the existing Office of the Commissioner of Insurance, who will become chief executive of the IA when it takes over regulatory duties for Hong Kong’s insurance industry. Although the IA differs from its predecessor in terms of its independence from the government, Mr Leung will be seconded from the government for the first year of the IA in order to oversee a smooth transition and effective first year of operation, said HK officials. "There has been public expectation that the IA should come into operation as soon as possible to strengthen the regulation of the insurance industry for the protection of policy holders,” said the Secretary for Financial Services and the Treasury, Professor K C Chan. “The arrangement for seconding the incumbent CoI to the IA for one year will ensure a smooth transition while allowing more time for the IA to search for a suitable candidate to fill the CEO post." Four executive directors were also appointed via an open recruitment process and by respective selection panels overseen by the chairman of the IA, Dr Moses Cheng. “With their wealth of professional experience, we are confident that the appointees will contribute to the effective performance of the IA's statutory functions,” said Professor Chan. The four executive directors, appointed on a three-year term, are: Ms Carol Hui Mei-ying as executive director, Long Term Business Mr Simon Lam Sui-kong as executive director, General Business Mr Stephen Po Wai-kwong as executive director, Market Conduct; and Mr Raymond Tam Wai-man as executive director, Policy and Development. Ms Hui joined the Office of the Commissioner of Insurance (OCI) in 1990 and is currently the acting assistant commissioner of insurance of the Long Term Business division. Mr Lam started his insurance career in Hong Kong in 1984. Prior to joining the IA, he was the chief operating officer for Asia Pacific of an international insurance company. Mr Po served as the senior director of the Intermediaries Supervision Department of the Securities and Futures Commission (SFC). He was also the chairman of the International Organization of Securities Commission Committee on the Regulation of Market Intermediaries for seven years before departing from the SFC in early 2017. Mr Tam held various managerial positions in insurance companies and served in the OCI and the Mandatory Provident Fund Schemes Authority previously. Before joining the IA, he was the chief risk officer, Asia of an international insurance group. The IA was formed in July 2015 and came into force in December 2015, when Dr Cheng and seven other non-executive directors took office. It will assume responsibility for regulating insurers as of June 2017 and is also expected to assume the supervision of insurance intermediaries within the next two years. Aside from being independent of government, the new regime will also have significantly widened and enhanced regulatory scope and investigative and enforcement powers. This includes the power to carry out on-premise checks of authorised insurers, subject to a warrant and to make copies of business records. Insurers will also be expected to comply with enhanced corporate governance requirements including the introduction of “control functions” such as risk management, financial control, compliance and internal audit – all of which will require the approval of the IA.

New HK insurance watchdog makes senior appointments

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