Different charges proposed for insurance supervision

Members of the Third Standing Committee of the Legislative Assembly (AL) have proposed that the local government charge different insurers a fee to pay for the Monetary Authority of Macao’s supervision service.
Yesterday, the committee met with government representatives to discuss the insurance business law.
On January 24, 2019, the AL passed law No. 27/97/M related to the insurance business. Overall, the amendment established a higher requirement for local insurers’ capital and funding. The amendment also suggests that insurers pay a higher fee for the supervision mechanism.
According to the bill, companies providing general insurance should have a minimum capital of 30 million patacas to set up a fund in Macau, whereas life insurance companies must have at least 60 million patacas.
The law currently in effect suggests that the monetary authority charge between 20,000 and 100,000 patacas for its oversight. The new amendment increased this range to between 30,000 and one million patacas.
Some members of the Standing Committee think that larger-size insurance companies require more resources and efforts for the authority to supervise them and should be charged more. They recommended the SAR government charge its fee based on the size of each insurer. Government representatives logged the suggestions.
The amendment also recommends that the insurer administration in Macau should consist of at least three members who are qualified to hold the positions, one of whom should be a Macau resident. Additionally, at least one Macau resident shall be among the company’s trustees.
The committee’s chairman, Vong Hin Fai, said that the relevant regulations are necessary to facilitate the Monetary Authority’s communication with the insurer. JZ