Hong Kong regulator moves to wind up Target Insurance


“Over the previous six months, our initiatives to get well the money owed to Target and repeated calls for for capital injection from shareholder controllers to satisfy the minimum solvency margin of the business have not received any good suggestions,” an IA spokesperson mentioned. “Target has violated the statutory regulatory requirements and its belongings are insufficient to fulfill its liabilities. In opposition to this track record, it is incumbent upon the administrators to petition for the winding-up of Focus on.”

In accordance to the IA, all-around 30,000 influenced procedures – 96% of which are motor procedures – will keep on being in drive until finally their expiry dates, with policyholders equipped to post their claims as normal. The Motor Insurers’ Bureau (MIB) of Hong Kong and the Staff members Compensation Insurance company Insolvency Bureau (ECIIB) will acquire up promises arising from 3rd-celebration motor and employees’ compensation enterprise, which are approximated to be about 94% of Target’s insurance policy liabilities. Concentrate on will continue to take care of the remaining 6% of liabilities.

“Based on the present-day instances, a statutory deposit of HK$250 million placed in trust with the IA for Target, jointly with estimated realisable property of Goal and the two insolvency cash managed by MIB and ECIIB, really should be enough to settle all valid fantastic statements and projected insurance policies liabilities,” Lai reported.

Before this calendar year, the appointed professionals stopped the renewal of taxi policies that ended up set to expire from February to August and later extended this arrangement to all other guidelines. The Central Distribution Technique set up by the IA is facilitating the migration of displaced taxi and general public light bus procedures to other insurers.

According to the regulator, there is sufficient potential in the basic insurance policies market to take in the remaining insurance policies. Policyholders who wish to acquire even further information and facts were encouraged to call the Hong Kong Federation of Insurers.

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