The Financial Services and the Treasury Bureau (FSTB) has released a report detailing the outcomes of the public consultation on establishing a policyholders' protection scheme (PPS) in Hong Kong.
The paper presents the feedback received during the consultation period and outlines the government's response and planned course of action.
According to a news release, the consultation, which ran from Dec. 30, 2022, to March 31, 2023, sought opinions on the proposed PPS from a range of stakeholders, including insurers, professional bodies in insurance, actuarial science, legal, consumer protection sectors, and the general public. In total, 14 submissions were received.
During the consultation process, the FSTB and the Insurance Authority engaged in direct discussions with representatives from the insurance industry, including the Hong Kong Federation of Insurers, to gather insights on the proposal. They also attended a meeting of the Panel on Financial Affairs of the Legislative Council to provide further briefings on the PPS.
A spokesperson for the FSTB acknowledged the general support from respondents for the establishment of the PPS and its key proposed features. In response to the feedback, the FSTB plans to refine the proposal to address stakeholders' concerns effectively.
Following the conclusions drawn from the consultation, the government is set to commence preparatory work for the establishment of the PPS. This will involve formulating detailed arrangements for the scheme and drafting necessary legislative amendments. The primary objective of these efforts is to enhance protection for policyholders in the event of insurer insolvency, ensuring a more secure insurance landscape in Hong Kong.
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