• issued consultation conclusions on a new risk-based capital set of rules, which seeks to make capital requirements for insurers more sensitive to the operational risks they run;
• kept co-operating closely with foreign insurance regulators while hosting the 14th joint meeting of the insurance regulators of Guangdong, Hong Kong, Macao and Shenzhen;
• issued a 'guidance note' on underwriting long-term insurance business (other than 'class C' business) in July 2015, which sets out comprehensive requirements for insurers in relation to, among other things, product design and the provision of adequate and clear information, to guarantee the fair treatment of customers (guidance note 16); and
• formed a fintech liaison team for the purpose of updating regulatory and compliance requirements to keep up with developments in technology and to facilitate innovation among insurers.

Apart from the transfer of its regulatory functions to the IIA, the OCI, among other things, is proceeding to the next phase of developing detailed rules and conducting "quantitative impact studies" for different types of insurer in relation to the new risk-based capital rules. It is also overseeing the coming into force of guidance note 16 and working on the enabling legislation that the Government wants to introduce into the Legislative Council in 2017 to establish a Policyholders’ Protection Fund, which aims to protect policyholders’ interests in the event of an insurer's insolvency.

* James Parker can be reached on +852 3405 2590 or at james.parker@nortonrosefulbright.com