The Insurance Authority (IA) has disciplined two former insurance agents for using fraudulent academic qualifications. These cases occurred under the previous self-regulatory regime, and the IA’s actions were in line with the standards in place at the time.
Initially, the agents submitted false academic certificates to the Insurance Agents Registration Board (IARB) in 2013 and 2017 in order to register as insurance agents. However, with the introduction of enhanced vetting requirements by the IARB, which required additional verification of academic qualifications, both agents again submitted false certificates in 2019 to meet these enhanced standards.
These incidents occurred before the IA assumed responsibility for the regulation of licensed insurance intermediaries on 23 September 2019. Under the transitional arrangements set out in Schedule 11 of the Insurance Ordinance (Cap 41), these cases will be dealt with in accordance with the regulations and disciplinary approaches in place at the time of the breaches.
The IA reiterates its commitment to deal with these cases thoroughly within these constraints and is publicising its actions to emphasise the unacceptability of such conduct. Since taking over the regulatory role, the IA has introduced a provision in the Ordinance that makes it an offence to provide false information in connection with licence applications.
Offenders risk a level 5 fine and up to six months imprisonment. The IA has reiterated its willingness to prosecute any individual who attempts to submit fraudulent academic certificates under the current regulatory framework.
The IA has also reminded insurers and their intermediary management control functions of their crucial role in vetting new insurance agents. Insurers are expected to conduct thorough checks to verify the accuracy of information submitted to the IA during the licensing process of prospective agents.
Elsewhere, members of the Hong Kong basketball team have reported incurring substantial medical expenses as a result of the Hong Kong Basketball Association’s (HKBA) alleged inadequate insurance cover for international events.
