HKIA stamps six-year ban on ex-agent for embezzlement and mishandling of premiums

The former insurance agent admitted wrongdoing during the IA's investigation.

The Insurance Authority (IA) of Hong Kong has barred a former agent from obtaining a license for six years due to mishandling premium payments. 

In 2014, the agent misled clients into changing payment modes, diverting funds for personal use. The policies lapsed in 2018. In 2018, he deceived them again, claiming a discount and offering to pay premiums, but never did. 

When clients submitted claims, they discovered the policies had lapsed. The agent admitted wrongdoing during the IA's investigation.

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“The truth was revealed when the clients submitted claims under their policies, via the agent, thinking they were still in-force. Initially, the agent made various excuses when asked about the status of the claims and the policies. Eventually, however, the clients discovered the true position when they contacted the insurer. Confronted by his clients, the agent returned the premium payment he had received in 2018, but not the premium payment for 2017 in the sum of HK$20,149.70,” the HKIA said in an announcement.

The case underscores the importance of trust in insurance intermediaries and the consequences of breaching it. Despite the betrayal, the IA applied a six-year ban based on regulations in place at the time.