Office of Insurance Commissioner

OFFICE OF INSURANCE COMMISSIONER
Department of Treasury
General (Non-Life) Insurance Regulator

Supervisory Approach for Licensed Insurance Brokers

Print Friendly, PDF & Email

Supervisory Approach for Licensed Insurance Brokers

The Insurance Commissioner employs various tools in conducting on-going supervision of licensed insurance brokers, broadly comprising off-site monitoring and on-site inspection.  The supervisory focus mainly cover……………………………………..

 

Off-site Monitoring

A major part of the off-site monitoring is to review and ascertain whether the licensed insurance broker company has satisfied at all times………………………….

On-site Inspections

On-site inspection is one of the supervision tools used by the OIC to monitor compliance of the licensed insurance brokers with the relevant laws and regulatory requirements. The OIC will conduct on-site inspections or prudential visits to licensed insurance broker companies, so as to gauge the level of their compliance and compliance of their responsible officers and technical representatives (broker) with the relevant laws and regulatory requirements in various areas such as the requirements under the  Broker Rules, …………….

Understanding and communicating with the industry

In order to have a broad and general understanding of the entire insurance broking industry, the OIC may collect business information from licensed insurance broker companies by various ways, such as a survey. To view the key observations of the broker survey, please refer to Broker Survey and Statistics.

Where issues identified (for example during supervisory work) are considered conducive to the development of the industry, the OIC may issue a circular to highlight the common identified shortfalls and remind the industry of the  regulatory requirements and/or expected standards of practice of insurance intermediaries.  With a view to raising industry standards and facilitating market development, the OIC issued a circular to share some key findings observed during on-site inspection visits to insurance broker companies, suggest various good practices in carrying on insurance brokerage business and encourage broker companies to strengthen internal controls and procedures.