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
Australia
APRA releases its annual general insurance
institution-level statistics
China
CBIRC Releases the Guidelines on Strengthening the
Development of Consumer Rights and Interests Protection System and Mechanism in
Banking and Insurance Institutions
Malaysia
Bank Negara Malaysia has issued a policy document
on Fair Treatment of Financial Consumers
India
IRDAI has published the Exposure Draft of IRDAI
(Insurance Surveyors and Loss Assessors) (Amendment) Regulations 2019
Singapore
MAS Imposes Civil Penalty of $11.2 million on UBS for
Deceptive Trades by its Client Advisors
Insurance cases
R. (on the application of Critchley) v Financial
Ombudsman Service Ltd [2019] EWHC 3036 (Admin)
English High Court
Mis-selling of payment
protection insurance – The Claimant brought an application for
judicial review of a decision made by an Ombudsman, on behalf of the Defendant,
dismissing her complaint against the First Interested Party
(“Halifax”) that a credit card payment protection insurance
(“PPI”) policy had been been mis-sold to her. The Claimant had made a
complaint to Halifax that the PPI policy had been mis-sold to her. She stated
in the Defendant’s consumer questionnaire that, if she had known of the
limitation of the cover, in respect of back pain and mental health, and if she
had known of the true cost of the policy, and its poor value, she would not
have purchased it. The Court found that the
Ombudsman’s reasons for his conclusions met the required standard. and that
therefore the Claimant’s submission based upon the duty of utmost good faith
did not succeed.
Australian Securities and Investment Commission v Westpac
Securities Administration Limited [2019] FCAFC 187 (28 October 2019) –
Federal Court of Australia
Financial advisers – The
Full Federal Court has upheld ASIC’s appeal from a decision of the Federal
Court regarding Westpac subsidiaries, Westpac Securities Administration Limited
(WSAL) and BT Funds Management Limited (BTFM). ASIC’s appeal concerned the
Federal Court’s decision regarding the meaning of ‘personal advice’ in the
Corporations Act, including the finding that WSAL and BTFM did not provide
personal advice to 15 customers in two telephone campaigns conducted by members
of Westpac’s Super Activation Team. The Full Court reversed that decision,
finding that in calls to 14 of the customers, the Westpac staff did provide
them personal advice, in breach of WSAL and BTFM‘s Australian financial
services licences.
The Full Court also
found that WSAL and BTFM, by providing personal advice to their customers,
failed to comply with other financial services laws in the Corporations Act,
including the ‘best interests duty’.
Insurance
articles / news
Chinese insurers report 12.6% growth in premium income
Aspen Re confirms Lloyd’s China office closure
Chubb ups stake in China’s Huatai: report
Insurtech shouldn’t be stifled: HK’s Insurance Authority
MS Amlin to close HK unit and integrate with MSIG
Hong Kong’s LifeDelight Insurance Plan goes live
Philippines: Govt reviews composite insurers’
capital requirements
Taiwan: Regulators raise capital charge for insurers
in bid to limit investment exposure
India: Foreign investors continue to sell shares of
listed insurers
Insurance Council of Australia appoints President from
Suncorp
UK-based insurtech Inzura expands in Asia
APAC reinsurers must evolve or risk getting left behind –
S&P
Beijing may sell off 98% stake in the former Anbang
Insurance
*Hong Kong, Singapore, China, Malaysia, Vietnam, Thailand and Australia.