Insurance Authority (IA) of Hong Kong has announced that it has taken full control of the operations and assets of Target Insurance.
The move comes after the regulator identified that Target’s investment activities and asset allocation might have breached statutory requirements and there are significant lapses in corporate governance.
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IA stated that its move is aimed at maintaining market stability and protecting the interest of policyholders.
It has appointed managers to take over control of Target’s operations. They will also conduct a detailed assessment of the financial position of the insurer and report findings to the regulator.
As per the South China Morning Posts’ report, the insurer has been barred from writing any new policies; however, its business will be conducted as usual.
The majority of Target’s business is focused on motor insurance and the remaining is employees’ compensation insurance.
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By GlobalDataIt provides coverage to nearly 10,000 taxis plying on the streets of Hong Kong.
Recently, the insurer announced that it would terminate policies of over 8,000 of its owner-operator taxi customers and refund the remaining premium.
As per the report, Target did not inform about its move to the regulator, which has brought in Bank of China Group Insurance, China Pacific Insurance (HK), China Taiping Insurance (HK) and CMB Wing Lung Insurance to insure the city’s taxis.
Meanwhile last month, Hong Kong-based insurance company FWD Group abandoned its initial public offering (IPO) plans in the US.
