Legislators passed the outline of a new government-initiated bill regulating the insurance intermediary business in the Legislative Assembly’s hemicycle yesterday, which will replace decree-law that was enacted in 1989.
Traditionally, insurance intermediaries have been categorised as either insurance agents or insurance brokers, according to the Council of Insurance Agents & Brokers based in Washington, DC.
Secretary for Economy and Finance Lei Wai Nong said that the bill aims to enhance the government’s supervision of insurance intermediaries by dividing their obligations into “general obligations” applicable to all insurance intermediaries and “special obligations” applicable to each class of insurance intermediaries.
According to Lei, the bill proposes to increase the fines for administrative offences imposed by the Monetary Authority of Macau (AMCM), which will be tasked with assessing the qualifications of applicants to become insurance intermediaries, who must meet certain minimum academic requirements.
Lei said that the bill proposes to raise the fines, with some “very serious” administrative violations being fined 100,000 patacas, from the current 30,000 patacas, while the current maximum fine of five million patacas will remain intact. If the breach causes a “particularly serious” impact, the fine will remain unchanged at five million to 10 million patacas.
Meanwhile, Lei noted, the types of penalties will also be increased, including the closure of business premises, the prohibition of insurance intermediary business, the loss of capital used for illegal business operations and the benefits obtained, among others.
After yesterday’s passage of its outline, the bill will be passed to one of the legislature’s standing committees for an article-by-article review, after which it will be resubmitted to another plenary session for its second and final debate and article-by-article vote.
Secretary for Economy and Finance Lei Wai Nong addresses yesterday’s plenary session in the Legislative Assembly’s (AL) hemicycle.
– Photo courtesy of TDM
