Hong Kong’s Insurance Authority (IA) has suspended two licensed insurance intermediaries after uncovering instances of policy application fraud intended to fulfill internal performance metrics.
The individuals – Leung Wai Mei and Ip Ka Ying – have received bans of 12 and 21 months, respectively.
According to IA records, Leung (Licence No. JE7178) submitted two fabricated policy applications by misusing a customer’s personal data and presenting a false identity document for her son. She later altered her correspondence address in an attempt to hide the activity.
Ip (Licence No. JA2270) was found to have submitted eight policy applications using unauthorised personal details of clients and acquaintances. Additionally, she accepted exclusions of liability relating to properties owned by two applicants, actions the IA deemed fraudulent.
The regulator said the disciplinary actions underscore its commitment to maintaining professional conduct among intermediaries and preventing deceptive sales tactics.
“These misconducts are iniquitous and premeditated, severely impugning the probity and professionalism expected of insurance intermediaries. The IA is determined to detect and deter such ignominious acts through a combination of intelligence gathering, data analytics, and close collaboration with the law enforcement agencies,” it said.
The IA said that both intermediaries cooperated with investigators and expressed contrition during the inquiry.
The disciplinary measures came shortly after the IA received feedback from its Process Review Panel (PRP), an independent oversight body tasked with evaluating regulatory procedures.
The PRP’s 2024 annual report covered IA operations during the 2023 calendar year, including licensing and enforcement actions.
The review analysed 20 specific cases and noted a total of 37,112 cases either resolved or closed during the period – a decline from previous levels.
The IA pledged to respond to the PRP’s findings and improve its regulatory processes.
Among the PRP’s recommendations were:
The panel also encouraged regular procedural audits.
To address these areas, the IA said it is finalising key performance indicators for licensing and case handling. It has also implemented an online system for CPD-related non-compliance reporting and made electronic submission mandatory for license applications via its Insurance Intermediaries Connect platform.