Hong Kong's insurance regulator is stepping up oversight and preparing to take action against companies that circumvent restrictions on broker commissions and policy return assumptions introduced last year, Bloomberg News reported Monday, citing the Insurance Authority's Chief Executive, Clement Cheung.
The regulator has detected signs that some firms are attempting to sidestep the tighter rules, which were designed to curb unrealistic return projections, unsuitable sales practices, and excessive commissions, according to the report.
Cheung indicated enforcement measures could follow, saying the authority had monitored the market for some time and identified warning signs, Bloomberg News reported.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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