Insurance Authority and ICAC conduct first joint operation against suspected unlicensed selling to Mainland China Visitors

The Insurance Authority (IA) and the Independent Commission Against Corruption (ICAC) have carried out their first joint operation targeting corruption in the unlicensed sale of insurance policies to customers in Mainland China. The operation was conducted based on a Memorandum of Understanding signed by the ICAC and IA in October 2023. The IA and ICAC executed search warrants at four premises, including the offices of a licensed insurance broker company and a referral company, over two consecutive days in April. During the joint operation, an individual broker and a referrer were arrested. The investigation centers around suspicions that the companies and individuals involved engaged in unlicensed regulated activities, violated the Insurance Ordinance, and committed offenses under the Prevention of Bribery Ordinance and the Code of Conduct for Licensed Insurance Brokers. The broker company is believed to have incentivized referrers to carry out regulated activities on its behalf without the necessary license. Referrers were allegedly paid high referral fees, and false information was allegedly included in application forms submitted to insurers. Mr. Peter Gregoire, Head of Market Conduct and General Counsel of the IA, emphasized the partnership between the IA and ICAC, expressing their commitment to upholding proper sales practices and maintaining trust and integrity in the insurance industry. Deputy Commissioner and Head of Operations of the ICAC, Mr. Ricky Yau Shu-chun, highlighted the cooperation between the two organizations and their joint efforts to combat corruption and misconduct in the financial sector. The IA urged authorized insurers and licensed insurance intermediaries to comply with the Insurance Ordinance, and both the IA and ICAC emphasized their dedication to taking swift and firm enforcement actions to address such activities and misconduct. As the investigation is ongoing, no further comments were provided. Resources: https://www.ia.org.hk/en/infocenter/press_releases/20240411_1.html