POLICY HOLDERS’ PROTECTION PLAN BACKED

The Financial Services & the Treasury Bureau today published a paper on the conclusions of the consultation on the proposal to establish a policy holders’ protection scheme (PPS), which outlined the views received during the consultation period, the Government’s response and the way forward.

During the public consultation period from December 30, 2022, to March 31, 2023, the bureau collected views from insurers, professional bodies as well as the public. A total of 14 submissions were received.

Furthermore, the bureau and the Insurance Authority attended a briefing to exchange views with industry practitioners and the Federation of Insurers on the consultation document. They also joined a meeting of the Legislative Council Panel on Financial Affairs to give a briefing on the PPS.

The bureau said it was pleased to note that respondents generally support the establishment of a PPS as well as the proposed key features of the scheme. It added that the PPS proposal will be fine-tuned, having regard to the respondents’ comments and suggestions.

Based on the consultation conclusions, the Government will begin the preparatory work on establishing a PPS, including the formulation of its detailed arrangements and the drafting of the necessary legislative amendments, with a view to enhancing protection for policy holders in the event of insurer insolvency.

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