Insurance Broker Licence Application
With effect from 23 September 2019, the Insurance Authority (“IA”) is the sole regulator to license and supervise all insurance intermediaries in Hong Kong. The IA is responsible for supervising insurance intermediaries’ compliance with the provisions of Insurance Ordinance (Cap.41) (“IO”), and the relevant regulations, rules, codes and guidelines issued by the IA.
Licensed insurance intermediaries are divided into two main categories: insurance agencies and insurance broker companies. Licensed insurance broker company is more popular among the two. It means a company which is granted a license by the IA under section 64ZA of the IO to carry on regulated activities in one or more lines of business, and to perform the act of negotiating or arranging an insurance contract as an agent of any policy holder or potential policy holder.
Major Requirements on Licensed insurance broker company
- Capital and net assets;
- Professional indemnity insurance;
- Keeping of separate client accounts; and
- Keeping of proper books and accounts;
Other Requirements
Responsible officer, in relation to a licensed insurance broker company, means an individual who is approved by the IA under section 64ZF of the IO as a responsible officer of the licensed insurance broker company. A responsible officer of a licensed insurance broker company is also a licensed technical representative (broker) of that company.
Test of Competence for RO
- Education
- Work Experience
- Management Experience
- Insurance Intermediaries Qualifying Examination
Before You Start
- Incorporate a Hong Kong limited company
- Appoint a Responsible Officer (RO) who fits the competence requirements
- Decide your business plan and line of business
What ComplianceOne can do for you
ComplianceOne offers end-to-end licensing assistance, including: Incorporation of a Hong Kong limited company, Recruitment of Responsible Officers (RO) and other staff, Drafting business plan and internal control policies, Submission of license applications to regulators on behalf of applicants, Communication with regulators on behalf of applicants, Assistance with bank account opening, Work visa processing, and more.
Timeline
Under normal circumstances, the entire process takes approximately 4 to 7 months. This includes 1 to 2 months for preliminary preparations, 1 to 2 months for recruiting a suitable Responsible Officer (RO) if needed, and 3 to 4 months for the regulatory authority to process the application. ComplianceOne will assist in addressing inquiries from the regulatory authority throughout the process.
External Reference
IA GUIDELINE ON “FIT AND PROPER” CRITERIA FOR LICENSED INSURANCE INTERMEDIARIES UNDER THE INSURANCE ORDINANCE
https://www.ia.org.hk/en/legislative_framework/files/GL23.pdf