This is our update of new insurance regulatory developments relevant to the Asia Pacific* and India, new insurance-related case law in Hong Kong, Australia and England and interesting insurance articles from across the world.

Insurance regulatory updates

Hong Kong

Cross-Agency Steering Group announces priorities to further strengthen Hong Kong’s sustainable finance ecosystem

Insurance Authority welcomes passage of the amendment bill for the implementation of the Risk-based Capital regime

Insurance Authority releases provisional statistics of Hong Kong insurance industry in the first quarter of 2023

Insurance Authority bans former insurance agent for 18 months for fabricating a client’s instructions and forging the client’s signature

Insurance Authority bans former insurance agent for three years for using a false academic transcript under the former self-regulatory regime

Latest edition of Conduct In Focus looks at claims handling, lessons for Mainland China visitors when buying insurance in Hong Kong, and Chatbots and artificial intelligence in the insurance sector

Insurance Authority welcomes the implementation of the Unilateral Recognition policy for cross-boundary motor insurance to facilitate Northbound Travel for Hong Kong Vehicles and enhance connectivity

Launch of Enforcement Correspondence platform on Insurance Intermediaries Connect and FAQs on how to handle disciplinary proceedings under the Penalty Framework for Non-compliance with Continuing Professional Development (“CPD”) Requirements

Conduct Supervision and Claims Handling Insurance Fraud Prevention Claims Database

Interpretation Notes for the Guideline on Underwriting Long Term Insurance Business (other than Class C Business)

Insurance Authority reprimands and fines broker companies $190,000 for failure to keep separate client accounts and maintain proper books and records

Singapore

MAS Enables Online Nomination of Insurance Beneficiaries

“Growing a Vibrant Insurance Linked Securities Market in Asia” – Speech by Mr Lim Cheng Khai, Executive Director, Financial Markets Development Department, Monetary Authority of Singapore, at the Artemis ILS Asia Conference on 13 July 2023

MAS Proposes to Increase Deposit Insurance Coverage

MAS-led Industry Consortium Releases Toolkit for Responsible Use of AI in the Financial Sector

MAS Penalises 3 Banks and an Insurer for Breaches of Anti-Money Laundering Requirements

Former CEO of Hyflux Ltd charged with additional offences under the Companies Act and another independent director of Hyflux Ltd charged with an offence under the Securities and Futures Act

MAS Proposes Enhanced Safeguards for Prospecting and Marketing of Financial Products

Written reply to Parliamentary Question on sale of sophisticated investment products to retail investors

MAS revises the Code of Corporate Governance to reflect independent director tenure limit and mandatory renumeration disclosure for directors and CEOs

UK

FCA sets out multi-occupancy leasehold insurance reforms

FCA sets clear plan for next 12 months

Launch of permanent Digital Sandbox

FCA warns insurers about support provided to struggling customers

The drive for data in Non-Bank Financial Intermediation (NBFI)

Australia

ASIC issues first stop order for a Life Insurance product

ASIC review of insurance target market determinations

IAL penalised $40 million over pricing discount failures

General insurers to repay consumers $815 million for broken pricing promises

ASIC grants relief to insurers from certain transaction confirmation requirements

MLC Life Insurance penalised $10 million for misleading customers and failing to provide benefits

ASIC sues HCF Life for alleged unfair and misleading contract terms in insurance

ASIC releases updated guidance for licensees on reportable situations

ASIC sues Auto & General Insurance Company for alleged unfair contract terms in insurance

APRA releases reminder on the use of alternative reinsurance arrangements

APRA consults on amendments to private health insurance reporting standards

APRA and ASIC commence early consultation on FAR

APRA finalises new prudential standard on operational risk

Cyber security stocktake exposes gaps

APRA responds to consultation on minor amendments to insurance reporting framework

APRA takes action against Medibank Private in relation to cyber incident

APRA finalises reforms aimed at strengthening recovery and resolution planning

APRA and AFCA sign Memorandum of Understanding

APRA responds to consultation on sunsetting life insurance standards

Insurance cases

Uniting Church in Australia Property Trust (NSW) v Allianz Australia Insurance Limited (Liability Judgment) [2023] FCA 190

Federal Court of Australia – 8 March 2023

INSURANCE – notification of facts – where claims brought against the Uniting Church arising from alleged sexual abuse in school run by the Church – whether applicant gave notice of facts to insurer that might give rise to claims against insurer – whether insurer precluded from denying indemnity by operation of s 40(3) of the  Insurance Contracts Act 1984  (Cth) (Act) – consideration of the relevant principles – where multiple “bulk notifications” given by insured – whether notifications given by insured as soon as reasonably practicable – consideration of whether s 54 cures omission to give notice under s 40(3) of the Act – where appropriate to make orders in respect of third-party claimants – form of relief

 Zurich Australian Insurance Limited v XL Insurance Company SE [2023] NSWSC 29

Supreme Court of New South Wales – 31 January 2023

PRIVATE INTERNATIONAL LAW — forum non conveniens — application for a stay —  insurance  — claim by plaintiff insurer against defendant insurer for equitable contribution on the basis of coordinate liability for the same risk — where the defendant insurer’s liability said to arise for one or both of two policies, one in English and governed by the laws of this State and another in French, arguably governed by the law of France — defendant contends that whilst this Court is an appropriate forum to determine issues pertinent to the English policy, it is clearly an inappropriate forum to determine issues pertinent to the French policy and that the Court should stay the proceedings so far as the issues relating to the French policy are concerned — defendant contends that it is oppressive to require it to deal with issues concerning the French policy in this Court — whether this court is a clearly inappropriate jurisdiction to determine the issues arising under the French policy — HELD — it is undesirable for components of the same overall dispute to be separated out and decided by separate courts — that it is not oppressive to require the defendant to deal with the French component in this Court, but if it were, it would be equally oppressive to require the plaintiff to deal with the French component separately from the local component in a foreign court — this Court is the more appropriate forum for the determination of the whole of the dispute — the Court does not anticipate any significant difficulty in dealing with any factual or legal issues to be determined in accordance with the law of France to the extent that it applies — seen as a whole, this jurisdiction is the one to which the dispute has the closest connection — application dismissed with costs

FTLIFE INSURANCE COMPANY LTD (FORMERLY KNOWN AS “AGEAS INSURANCE CO (ASIA) LTD”) V. HO SUK YUE [2023] HKDC 363

District Court of Hong Kong – 31 March 2023

Contractual dispute: the plaintiff, an insurance company, terminated the contract of the defendant, one of its insurance agents, by giving one month’s notice. The plaintiff sought a clawback of various performance bonuses advanced to the defendant. The defendant disputed her liability to repay.

Insurance articles and news  

Industry vet rejoins Chubb as head of casualty in Asia

Insurers suspected of colluding over premiums for corporate contracts

MAS pledges S$150m to aid the financial sector

General counsel to leave Lloyd’s

Japan antitrust watchdog begins probe into alleged insurance cartel activities

Nine in 10 Hong Kong, GBA residents willing to share personal data with insurers

Bupa announces senior addition for APAC region

New funding for insurtech drops

Cyber insurance pricing in Asia surged by 8% – Marsh

Generative AI in insurance to speed up within 12-18 months: expert

Lloyd’s leads insurers tightening Taiwan cover as conflict risks rise

*Hong Kong, Singapore, China, Malaysia, Vietnam, Thailand and Australia.