VII. Ethical and Other Related Issues 職業道德及其他有關問題

An insurance broker is the agent of the policyholder and must act in the client's best interests, using reasonable care and skill to arrange suitable cover. An insurance agent is the agent of its appointing insurer, but must still treat policyholders honestly and fairly and follow the Insurance Authority's code of conduct.

If the Insurance Intermediary is an Insurance Broker · If the Insurance Intermediary is an Insurance Agent

The Personal Data (Privacy) Ordinance (Cap. 486) uses six Data Protection Principles to govern how data users collect, keep, use, secure, explain and give access to the personal data of living individuals, and the Privacy Commissioner for Personal Data enforces it. Insurers and insurance intermediaries handle large amounts of sensitive client data, so they must follow these principles and the direct marketing rules.

Features of the Ordinance · Insurance Applications

Hong Kong's anti-discrimination ordinances prohibit insurers and intermediaries from treating people less favourably in insurance because of protected characteristics such as sex, disability, family status or race. Different treatment is permitted as 'fair' discrimination only where it is based on actuarial or statistical data that it is reasonable to rely on, and is reasonable having regard to that data and other relevant factors.

Legislation Addressing Discrimination · ‘Fair’ Discrimination in Insurance · Unfair Discrimination in Insurance

Money laundering hides where criminal proceeds came from, while terrorist financing and proliferation financing are about where funds are going. Hong Kong law requires anyone who knows or suspects such activity to report it to the Joint Financial Intelligence Unit and makes tipping off an offence. Insurance institutions, especially those carrying on long term business, must also carry out customer due diligence, ongoing monitoring and record-keeping under the AMLO and the Insurance Authority's GL3.

What is Money Laundering · What is Terrorist Financing · What is Proliferation Financing · Stages of Money Laundering · Vulnerabilities in Insurance Industry · Legislation on Money Laundering and Terrorist Financing · Guideline on Anti-Money Laundering and Counter-Terrorist Financing (GL3)

The Prevention of Bribery Ordinance (Cap. 201) makes it an offence for an agent to solicit or accept an advantage, without the principal's permission, as an inducement or reward in relation to the principal's affairs, and for anyone to offer such an advantage. Insurance practitioners should report suspected corruption to the ICAC and can use the ICAC's free corruption prevention and integrity training services.

Major Provisions of the POBO · Report Corruption · Assistance from the ICAC

Insurance intermediaries sit at key points in the proposal and claims process, so fraudsters often try to use them. Even helping a client to hide or exaggerate something can make an intermediary a partner in crime, with criminal and disciplinary consequences. Intermediaries should know their clients, handle documents properly, watch for fraud indicators and report suspicions to the insurer.

Beware of Becoming Partners in Crimes · The Insurance Intermediary and Examples of Insurance Fraud · Practical Steps in Preventing Fraud