The Hong Kong Insurance Authority (IA) has issued a public alert regarding phishing scams involving fraudulent text messages that falsely claim to be from Bowtie Life Insurance Company Limited.
These messages are designed to trick recipients into providing personal or payment information by encouraging them to click a hyperlink and call a suspicious phone number. They suggest that this action is necessary to cancel payments related to certain insurance policies.
Bowtie has stated that it has no connection to these fraudulent messages and has reported the incident to the Hong Kong Police Force for further investigation.
The IA advised individuals who may have shared personal information or conducted transactions with the fraudsters to immediately contact Bowtie at 3008-8123 and report the matter to the police.
In a related notice, the IA warned the public about fraudulent payment requests that appear to come from the regulator.
The IA received multiple reports of suspicious invoices labelled “Insurance Authority Certificate” or “Capital Insurance Certificate,” which include falsified IA details and official stamps.
The insurance watchdog clarified that it does not issue such invoices or provide any insurance policies as claimed in these fraudulent documents, and it already informed the Hong Kong Police Force about these cases.
The IA encourages the public to verify any questionable payment requests by calling its general enquiry hotline at 3899-9983 and to report any suspected fraudulent activities to the authorities.
These warnings have been issued as new regulations reshape the Hong Kong insurance industry.
This month, the IA issued new guidelines for insurance brokers, particularly those involved in referral businesses targeting Mainland China visitors.
The guidelines, detailed in the latest issue of “Conduct in Focus,” outline compliance requirements for brokers to ensure that unlicensed referrers do not engage in regulated activities, such as providing advice or selling insurance products.
Non-compliance with these guidelines could lead to significant penalties, including the suspension or revocation of licenses.
Brokers are required to conduct comprehensive due diligence on their referrers, maintain detailed records, and regularly review their compliance with the guidelines. Insurers collaborating with these brokers must also ensure that their agreements, training programs, and monitoring processes are in line with regulatory standards.
Conduct in Focus also reiterated that beginning September 23, 2024, the IA will implement fees for processing insurance intermediary license applications and related notifications. This move follows the conclusion of a five-year fee waiver that was in place since the IA took over the regulatory functions for insurance intermediaries in 2019.
Peter Gregoire, the IA’s general counsel and head of the Conduct Supervision Division, explained that the fees are intended to cover the regulator’s costs related to regulating the insurance industry, including conducting inspections and overseeing market conduct.
The fees will also support enhancements to the IA’s technology-driven licensing systems and fund public education efforts aimed at helping consumers make better-informed insurance decisions.
The Conduct in Focus publication also covered other important topics, such as best practices for general insurers in issuing renewal notices, the significance of participating in the SMS Sender Registration Scheme to protect against fraudulent activities, and the advantages of using online self-service portals provided by insurers.
In a final development, the IA has restructured its Market Conduct Division into two separate entities: the Conduct Supervision Division and the Enforcement Division.
This reorganisation aims to strengthen the IA’s focus on both preventive measures and enforcement actions.
