The Hong Kong Insurance Authority (IA) has taken disciplinary measures against Tahoe Life Insurance Company Limited, citing unauthorised related-party transactions that occurred between July 2019 and April 2020.
The IA imposed a public reprimand and a HK$10 million fine, which will be paid from the insurer’s shareholders’ fund.
The IA’s investigation found that Tahoe Life engaged in transactions with Tahoe Group Global (Co.) Limited without first securing the regulator’s approval, as required by local insurance regulations.
During the period in question, Huang Qisen and Ge Yong served as directors of Tahoe Life.
Following the IA’s findings, both individuals are no longer deemed suitable for key management roles and have since left their positions.
To address the compliance breaches, the IA has introduced several supervisory measures. These include ring-fencing certain assets, strengthening internal controls, and imposing investment restrictions.
On July 26, 2024, the IA appointed joint and several managers to oversee the operations, business, and property of Tahoe Life.
The regulator said that these actions are intended to safeguard policyholder interests and that existing policyholders will remain unaffected by the enforcement steps.
In a separate set of actions, the IA has penalised two insurance brokers in Hong Kong for lapses in client fund management and professional indemnity insurance coverage.
Century Investment Planning Limited, which is no longer licensed, received a public reprimand after the IA determined that the firm repeatedly failed to keep client funds in designated separate accounts.
The company was also found to have used client monies inappropriately and delayed premium payments to an insurer, violating both the previous self-regulatory framework and the Insurance (Financial and Other Requirements for Licensed Insurance Broker Companies) Rules (Cap. 41L).
Another broker, whose name was not disclosed, was fined HK$12,000 for miscalculating its professional indemnity insurance requirement under the earlier regulatory regime. This error led to a coverage gap of approximately HK$11.8 million.
The IA noted that no financial losses were reported by clients in either case, and both firms cooperated during the enforcement process.
The IA emphasised the necessity of maintaining clear separation between client funds and company assets, as well as ensuring adequate professional indemnity insurance.
According to the regulator, these requirements are fundamental to the effective oversight of insurance intermediaries.
