31 July 2024
On 31 July 2024, the Insurance Authority (IA) issued a circular setting out the detailed arrangements for payment of fees for processing insurance intermediary licence applications and related notifications from 23 September 2024 onwards. The fees have been formulated on a cost-recovery basis, taking full account of input received from stakeholders in the industry consultation conducted by the IA.
Although the IA assumed regulatory responsibility for licensing and supervising insurance intermediaries on 23 September 2019, all licensing and related fees payable by insurance intermediaries have been waived for the five-year period since that date. Following the end of the waiver period, the charging of insurance intermediary fees will underpin the IA’s capacity to continue effectively performing its public functions of regulating the insurance industry to promote the general stability of the industry and protect policy holders.
According to Mr Peter Gregoire, Head of Conduct Supervision Division and General Counsel of the IA, “The fee-levels cover the IA’s costs of regulating the insurance market, but do not go beyond this. This additional income stream will equip the IA to continue effectively regulating the conduct of insurers and intermediaries through focused on-site inspection and offsite supervision. It will also sustain our capacity to administer and continually improve our technology-based licensing process, embark on new public education campaigns that promote the importance of insurance and empower consumers to make fully informed insurance-buying decisions, offer training to insurance practitioners, and take proportionate enforcement actions that reinforce the integrity of the insurance market. We thank the industry for its valuable feedback and support in the consultation.”
To facilitate payment of the fees, a new payment gateway function has been developed in the IA’s e-portal, Insurance Intermediaries Connect (IIC). The IA will continue to work closely with the insurance industry to ensure the transition to the fee-charging era is as smooth as possible.
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