Taxi insurances expire in Aug will not be renewed by Target Insurance
Target Insurance (6161) on Wednesday announced that it will cease renewals of existing taxi insurance policies that expire in August and said the Insurance Authority will help taxi owners in transition to other insurers.
The announcement came after the insurer early this year refused to renew taxi insurance policies that would expire between February and July.
Affected insurance agents and uncovered taxi owners will receive written notifications from Target soon, the company said.
The Hong Kong Federation of Insurers said order is being restored to the taxi insurance market gradually through the authority's centralized transfer system and the market's self-regulation.
Data released by the federation also showed that 84 percent of about 5,200 affected taxi insurance policies between February and July were successfully transferred to other insurers via the centralized system.
As for the rest, some taxi owners handled the transfers themselves while some are still considering the prices quoted by the other insurers or whether to retire the taxis.
In January, the authority appointed two managers to overtake all affairs and assets of Target and transferred Target's taxi insurances to four other insurance companies through the centralized system.
The four companies are Bank of China Group Insurance, China Pacific Insurance (HK), China Taiping Insurance (HK) and CMB Wing Lung Insurance.
The authority back then explained the intervention was to "maintain the market stability and protect the policy holders' interests."
The regulator added Target might have breached statutory requirements under the Insurance Ordinance and also found deficiencies in Target's corporate governance.