The Hong Kong Insurance Authority (IA) has issued a critical warning about phishing scams involving fraudulent text messages masquerading as communications from Bowtie Life Insurance Company Limited. These deceptive messages aim to coerce recipients into divulging personal or payment information by directing them to click on a dubious link or contact a suspicious phone number, claiming it is necessary to cancel insurance payments.
Bowtie Life Insurance has denounced these scams, clarifying that it has no affiliation with the fraudulent messages and has reported the incidents to the Hong Kong Police Force for further investigation. The IA advises anyone who may have shared personal details or engaged in transactions with the scammers to immediately contact Bowtie at 3008-8123 and report the situation to the police.
In a related warning, the IA has alerted the public to fraudulent payment requests that appear to originate from the regulator itself. Reports have surfaced of fake invoices labeled as “Insurance Authority Certificate” or “Capital Insurance Certificate,” featuring fabricated IA details and official stamps. The IA emphasized that it does not issue such invoices or offer insurance policies as described in these fraudulent documents. The IA has informed the Hong Kong Police Force about these cases and encourages anyone receiving suspicious payment requests to verify them by calling the IA’s general enquiry hotline at 3899-9983 and to report any suspected fraud.
In response to evolving regulations, the IA has introduced new compliance guidelines for insurance brokers, especially those involved in referral businesses targeting Mainland China visitors. The updated guidelines, featured in the latest “Conduct in Focus” publication, stipulate that brokers must ensure that unlicensed referrers do not engage in regulated activities, such as providing advice or selling insurance products. Brokers are also required to conduct thorough due diligence, maintain detailed records, and regularly review compliance. Failure to adhere to these guidelines could result in severe penalties, including license suspension or revocation.
Additionally, starting September 23, 2024, the IA will implement licensing fees for insurance intermediaries, following the end of a five-year fee waiver. These fees are designed to cover regulatory costs, including inspections, market oversight, and enhancements to the IA’s technology-driven licensing systems. The funds will also support public education efforts to help consumers make informed insurance decisions.
The “Conduct in Focus” publication also highlighted best practices for insurers, including issuing renewal notices, participating in the SMS Sender Registration Scheme to combat fraud, and utilizing online self-service portals.
Lastly, the IA has restructured its Market Conduct Division into two distinct entities: the Conduct Supervision Division and the Enforcement Division. This restructuring aims to enhance the IA’s focus on both preventive measures and enforcement actions.
