This is our regular 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

The Insurance Authority has announced it will delegate inspection and investigation powers of bancassurance activities of banks to the Monetary Authority (MA), taking effect on 23 September 2019 when the statutory regulatory regime for insurance intermediaries under the Insurance Ordinance comes into operation.

The China Banking and Insurance Regulatory Commission has announced an agreement to continue the preferential treatment to Hong Kong under the “China Risk Oriented Solvency System”, allowing lower capital requirements for Mainland insurers who cede businesses to qualified Hong Kong professional reinsurers.

India

The Insurance Regulatory and Development Authority of India has assured the public that the insurance businesses of troubled mortgage lender DHFL are stable and have adequate solvency.

UK

The Financial Conduct Authority has confirmed it intends to extend the proposed duration of the directions issued under the temporary transitional power to the 31 December 2020. The temporary transitional power is intended to minimise disruption for firms and other regulated entities if the UK leaves the EU without a withdrawal agreement. This extension should give firms and other regulated persons the time they need to phase in any regulatory changes they may need to make as a result of ‘onshored’ EU legislation.

The FCA has published an updated Memorandum of Understanding (MoU) between the FCA and the Bank of England (when exercising its prudential regulation functions through the Prudential Regulation Authority)

The FCA has fined Standard Life Assurance Limited (SLAL) £30,792,500 for failures related to non-advised sales of annuities

The FCA has launched a consultation on proposed guidance for firms on the fair treatment of vulnerable customers. The guidance sets out the FCA’s view of what the FCA Principles require of firms to ensure that vulnerable consumers are consistently treated fairly across financial services sectors.
 

Insurance cases
Korea Trade Insurance Corp v Fortune Dragon Motors – [2019] HKCFI 1824; HCA 1281/2018 

There was no requirement for an insurer to plead/prove its locus standi to sue as a subrogated party where it can rely upon of estoppel by deed, or by convention.

Moulin Global Eyecare Holdings Ltd v Olivia Lee Sin Mei – [2019] HKCFI 1715; HCA 167/2008

A company fraudulently paid dividends and made share repurchases. A non-executive director failed to require irregularities which she was aware of to be fully investigated and such failure caused loss to company.
 

Insurance articles / news

The ACDC Act opens the door to a hack-back highway to hell

Results at Beazley and Chubb point to price momentum

Prudential and FWD are competing to become bancassurance partner of the Bank for Foreign Trade of Vietnam (known as Vietcombank)

Vietnam’s insurance industry is expected to maintain a growth rate of 20% in 2019