V. Structure of Hong Kong Insurance Industry 香港保險業的結構

Insurance business can be classified by statute, by market practice or academically. The Insurance Ordinance divides direct business into long term business and general business. In practice the market groups business by department, such as life, fire, marine, motor and accident, while the academic approach groups it by what is protected: property, pecuniary interests, liability or the person. Reinsurance is the insurance of insurers: an insurer passes on part of the risks it has accepted to a reinsurer.

Statutory Classification of Insurance · Practical Classification of Insurance · Academic Classification of Insurance · Reinsurance

Hong Kong is a large, international insurance market, with about 160 authorized insurers, well over 100,000 licensed insurance intermediaries and many unlicensed support staff. Long term business brings in far more premium than general business. Candidates should know how the categories compare in size and which way they are moving, rather than memorising one year's figures.

Authorized Insurers · Licensed Insurance Intermediaries · Persons Employed · Premium Volume

In Hong Kong, only insurers authorized by the Insurance Authority under the Insurance Ordinance (Cap. 41) may carry on insurance business in or from Hong Kong. Insurers are grouped by the business they write (long term, general or composite), and there are also special types such as professional reinsurers, captive insurers and Lloyd's.

Hong Kong insurance intermediaries fall into two groups: licensed insurance agents, who act for their appointing insurers, and licensed insurance brokers, who act for policy holders. Since 23 September 2019 the Insurance Authority has licensed and regulated all intermediaries directly.

Several trade organisations support the Hong Kong insurance industry. The Hong Kong Federation of Insurers represents insurers and professional bodies represent brokers. The Insurance Complaints Bureau and the Motor Insurers' Bureau help claimants and road accident victims, and the Employees' Compensation Insurance Residual Scheme Bureau gives employers who cannot get cover in the market a last resort.

The Hong Kong Federation of Insurers · Professional Bodies of Insurance Brokers · Industry Organisations to Assist Claimants or Victims · Employees’ Compensation Insurance Residual Scheme Bureau