...Sound Credit Fundamentals: Fitch Ratings believes solid capital buffers, consistent business growth, and satisfactory operating margin will continue to underpin the financial strength of both the life and non-life insurance sector in Hong Kong. Keen competition arising from abundant underwriting capacity will constrain general insurers' capability to improve their operating margin while life insurers' growth is still highly dependent on their own distribution capability. Increased Regulatory Supervision: Some insurers might have to revise their operating process when the new regulatory guidance note (GN16) ¡ which governs the way life insurers underwrite and sell their non-linked policies ¡ is implemented in April 2016. The note, aimed at enhancing consumer protection, requires insurers to evaluate their sales process, and stresses the importance of customer-suitability assessment and remuneration-structure appropriateness. Fitch expects insurers will face higher administrative and compliance...
