, Hong Kong
516 views
/Markus Spiske from Unsplash

Insurance authority intervenes amidst Tahoe Life financial woes

Despite appointing advisors in 2023, the insurer failed to provide deliverables.

The Hong Kong Insurance Authority (HKIA) invoked its powers – under Section 35(2)(b) of the Insurance Ordinance – to appoint Derek Lai, Forrest Kam, and Oliver Cheng of Deloitte as Joint and Several Managers of Tahoe Life Insurance Company. 

This move is aimed at taking full control of Tahoe Life's affairs and property.

Since mid-2020, the HKIA has implemented supervisory measures to protect policyholders whilst urging Tahoe Life's management and shareholders to find solutions for issues related to investments in related party transactions. 

Despite appointing advisors in August 2023 to provide recommendations, Tahoe Life failed to submit audited financial statements for 2022 and 2023, attract new strategic investors, and improve corporate governance. 

With majority shareholders involved in multiple debt proceedings, the appointment of Managers is deemed necessary to assess the company's financial and solvency status, preserve capital resources, and identify recovery solutions for policyholders.

The IA's previous measures have enabled Tahoe Life to meet its insurance obligations. Policyholders are reminded to assess their situations carefully and avoid hasty decisions. 

In a coordinated regulatory action, the Bermuda Monetary Authority (BMA) appointed Marcin Czarnocki, Derek Lai, Forrest Kam, and Cheng as Joint Provisional Liquidators (JPLs) of Tahoe Life by order of the Supreme Court of Bermuda. 

This action is intended to ring-fence Tahoe Life's assets to protect policyholders, rather than to wind up the company.

The HKIA has been working closely with the BMA on regulatory actions against Tahoe Life, given its incorporation in Bermuda. The JPLs' appointment in Bermuda complements the Managers' efforts in Hong Kong to determine Tahoe Life's financial and solvency status and to implement effective recovery solutions.

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

APAC emerges as leader in renewables insurance
RE is projected to account for 45% of global electricity generation by 2030.
Insurance
IFRC-DREF triggers insurance payout after disaster relief demands exceed threshold
The policy provides up to $16.92m in coverage.The International Federation of Red Cross and Red Crescent Societies' Disaster Response Emergency Fund (IFRC-DREF) has triggered its first-ever insurance payout after disaster relief demands exceeded its deductible threshold. 
Insurance