Approach to Supervision
The Insurance Division supervises its licensed insurance managers and insurance intermediaries by conducting regular off-site monitoring supplemented by periodic on-site monitoring.
Off-site monitoring is performed either on a prospective basis (i.e. before the event occurs) or on a retrospective basis (i.e. reviewing past performance).
Licensed insurance managers and insurance intermediaries are required to notify the Commission of, and in some cases obtain the Commission’s prior approval for, material changes to their circumstances. Some of the more common changes requiring notification are listed below:
Material change to the business plan
- Under section 27(2) of the law
, any proposed material change to a licensed insurance manager’s or insurance intermediary’s business plan is subject to prior notification to the Commission. The Commission therefore expects to receive an amended narrative business plan reflecting the proposed change for consideration prior to such a change being implemented.
- Change of director, controller, partner or manager- Under section 27(5) of the law, a licensed insurance manager or insurance intermediary must obtain the Commission’s prior written approval before effecting any change of any director, controller, partner or manager. Any such proposed changes should be submitted in writing to the Commission.
Change of authorised insurance representative
- Under section 27(5A) of the law
, a licensed insurance intermediary or insurance manager, where applicable, must notify the Commission of the change of any authorised insurance representative within 10 days of such a change being made.
- Change of auditor- Under section 21 of the law, a licensed insurance manager or insurance intermediary must notify the Commission in writing of any change of auditor and the reason for the change. In addition, the licensee must appoint a new auditor within 28 days of the resignation of the previous auditor unless otherwise agreed in writing by the Commission.
Please note that the above list is not exhaustive and should only be used for information purposes. Whilst the Commission is happy to provide help and guidance on what may require notification or approval, each individual licensed insurance manager or insurance intermediary is ultimately responsible for ensuring compliance with all relevant laws, regulations, rules and codes.
All licensed insurance managers and insurance intermediaries are required to submit an annual return to the Commission containing information in respect of past performance. Please refer to the Returns
section for further information in respect of the annual return requirements. Where serious issues have been identified, the Commission may require the licensee to provide additional information and/or take immediate action to rectify the position.
The Insurance Division performs regular on-site visits to its licensees to enhance the Division’s understanding of the licensee’s business and to review the risk management systems and internal controls in operation. These visits may be carried out on a full scale basis, covering all risks to which the licensee is exposed, or on a focussed basis, covering specific areas of concern such as market conduct or anti money laundering procedures.
In addition, the Insurance Division holds both regular and ad hoc meetings with its licensees to keep abreast of any significant developments and to discuss any issues that may arise.