The Macau Legislative Assembly (AL) passed an amendment bill on insurance intermediary business in its second and final reading yesterday in the legislature’s hemicycle.
The new law will replace a 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.
During yesterday afternoon’s debate in the legislature’s hemicycle, several lawmakers raised concerns whether the new law will enable insurance practitioners to practise in the mainland, especially in the Guangdong-Macau In-depth Cooperation Zone in Hengqin.
Secretary for Economy and Finance Lei Wai Nong said that the insurance intermediary business is a regulated activity, and if cross-border business was involved, it had to comply with the laws of the respective places, including the qualifications and the sale of products subject to the regulations by the relevant mainland authorities.
According to Lei, the government is discussing with the relevant authorities in the Guangdong-Macau In-depth Cooperation Zone in Hengqin local residents’ right to obtain insurance renewal, claims and surrender services there, adding that a special body has been set up to study the feasibility of implementing the cross-border arrangement.
The law extends the validity period of insurance intermediary licences from one year to two years, and clarifies the conditions for renewal of the licences, including the requirement to comply with continuing professional training.
The law also raises the fines for administrative offences, with the Monetary Authority of Macau (AMCM) having the right to impose fines ranging from 5,000 patacas to one million patacas, or up to 10 million patacas if that the offence has a particularly serious impact.
The government-drafted law is slated to take effect August 1, 2025.
Secretary for Economy and Finance Lei Wai Nong addresses yesterday’s plenary session in the Legislative Assembly’s (AL) hemicycle. – Photo courtesy of TDM
