Hong Kong Insurance Broker License PIBA

 

 

 

1. Hong Kong insurance broker license PIBA business

 

An insurance broker is a person who, as the agent of a policy holder or potential policy holder, carries on business in or from Hong Kong to negotiate or arrange insurance contracts or to advise on insurance matters.

 

 

2. Hong Kong insurance broker license PIBA requires conditions

 

You can apply to be an authorized insurance broker, whether it is a sole proprietorship, a partnership or a limited company.Authorization may be obtained by applying directly to the office of the commissioner of insurance or by applying to be a member of a body of insurance brokers recognized by the insurance authority.Chief executives and technical representatives of insurance brokers are also required to register.

 

Nomination of chief executive officer and technical representative:

Insurance brokers shall nominate one chief executive officer.The chief executive shall be a fit and proper person and shall meet the minimum requirements specified by the ia in terms of qualifications and experience.The person shall deal with the brokerage business of the insurance broker.

Technical representative means a person who advises policy holders or potential policy holders on insurance matters on behalf of an insurance broker, or who negotiates or arranges insurance contracts for policy holders or potential policy holders in or from Hong Kong on behalf of the insurance broker.

 

Minimum requirements under the insurance companies ordinance (chapter 41, laws of the Hong Kong special administrative region)

The insurance authority issued a minimum requirement for insurance brokers covering five aspects, which took effect on March 1, 2010.

Details of the requirements can be found here:

http://www.oci.gov.hk/chi/download/minrev.pdf

(A) qualifications and experience

The insurance broker or the chief executive nominated by the insurance broker must:

(1) aged 21 or above;

(2) he is a Hong Kong permanent resident, or a Hong Kong resident whose working visa terms (if any) do not restrict him from practising in the insurance brokerage business;

(3) at least secondary 5 education or equivalent; and

(4) hold an accredited insurance qualification and have at least two years' experience in an insurance management position.

If they do not hold an approved insurance qualification, they must have at least five years' working experience in the insurance industry, including two years in a management position;They must also pass the relevant papers in the qualifying examination (except those exempted).

(B) capital and net assets

Unincorporated insurance brokers are required to keep a minimum net asset value of hk $100,000 in their insurance brokerage business at all times.

An incorporated insurance broker is required to keep a minimum net asset value of hk $100,000 and fully paid capital stock at all times.

The minimum net asset value is calculated excluding all intangible assets and in accordance with generally accepted accounting principles in Hong Kong.

(C) professional indemnity insurance

The insurance broker is required to maintain a professional indemnity policy which provides a minimum indemnity limit for any claim and any 12 month insurance period.The minimum indemnity shall be:

1) for insurance brokers who have been engaged in insurance business for more than one year, the total income of insurance brokers in the 12 months prior to the effective date of the professional indemnity policy shall be twice of that;

For an insurance broker who has been in the insurance business for less than one year, the professional indemnity policy covers twice the expected insurance broker's income for the 12 months from the date of coverage.

2) hk $3,000,000

Whichever is larger, the maximum amount is hk $75,000,000.

(D) maintaining separate customer accounts

The insurance broker is required to deposit the customer's money into a separate customer bank account.He shall not use the client's funds for any purpose other than that of the client concerned.

(E) proper maintenance of books and accounts

The accounting and financial records shall fully account for the transactions and give a true and fair picture of the financial position and transactions of the insurance broker's business.The records shall be kept in good order for timely audit.

Records shall be in writing containing all transaction details of the broker, all brokerage revenues and all expenses paid by the insurance broker, and a detailed record of all assets and liabilities of the insurance broker.The record shall be kept for not less than 7 years.

Fit and proper person requirement

Insurance brokers must meet the requirements of the right person.He shall conduct his business with the utmost integrity and integrity.He is also required to provide independent and impartial advice without conflict of interest.

Insurance brokers must be careful and responsible to understand and meet the needs of their clients and ensure that their employees are the appropriate persons to perform the relevant work.He is also required to explain to the client the terms of the insurance contract and comply with all work and ethics guidelines and codes.

Customer interests must come first.Therefore, the insurance broker shall not disclose any information obtained from the client.Insurance brokers are required to provide their clients with appropriate and accurate material information.

Keep a register of members

Under section 69 (3) of the insurance companies ordinance, an insurance broker is required to keep a register of its members at its registered office or principal place of business in Hong Kong, recording the information of each member of the body of insurance brokers as required by the insurance authority and making the register available for public inspection during normal business hours.

The application form

Application can be made to the professional insurance brokers association of Hong Kong or the insurance consultants association of Hong Kong.

Authorized processing time

It will normally take 4 months from the submission of the application document to the issuance of the approval in principle to process the application for authorization.

 

 

3. How to apply for or purchase a PIBA

 

There are two options for PIBA to hold a Hong Kong insurance broker license:

3.1.Is to apply for a license through the Hong Kong association of professional insurance brokers (PIBA);

3.2.Is a direct acquisition of a Hong Kong insurance broker license PIBA company

Application for a license through the Hong Kong association of professional insurance brokers (PIBA) :

1. The applicant company and the nominated chief executive shall comply with the guidance note on minimum requirements for insurance brokers issued by the oci.

2. Download and complete the "application form" and click the "application list" to submit the required documents and fees.

3. The Hong Kong professional insurance brokers association will not process any application with incomplete documents and will return the application.

4. After completing the application form and submitting all necessary documents and fees, the Hong Kong professional insurance brokers association will arrange for the nominated chief executive to conduct an interview with the member panel at an appropriate time.

5. The Hong Kong professional insurance brokers association will inform you of the result of the due diligence assessment or any follow-up matters by email.The whole application process may take more than six months.

6. If the nominated chief executive already holds the chief executive registration of another insurance broker and the two insurance brokers have a common shareholder or a direct relative of the shareholder, the application shall be submitted together with the following documents:

(I) documents certifying the relevant shareholders of the two insurance brokers.

(ii) explain the reasons for registering as chief executives of both companies.

(iii) copies of board resolutions of the two companies indicating acceptance of the appointment of the persons concerned as chief executives of the two companies.

(iv) the balance sheet and profit and loss accounts of the company being registered by the applicant should be prepared within two months prior to the date of submission of the application.

(v) a recommendation letter issued by a director of the company currently registered by the applicant, including the applicant's position and performance.

 

 

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4.Application or purchase of license fee

 

4.1 application fee:

4.2 license purchase fee: