HKIA suspends insurer for deceptive practice

Lam intended to improve his sales performance by applying for insurance in his client’s name.

Hong Kong’s Insurance Authority (IA) has taken disciplinary action against Lam Kwan, suspending his license for seven months due to unethical conduct.

Lam applied for an insurance policy in his client's name without her knowledge or consent, under the guise of a fictitious lucky draw.

The client found out about the policy while reviewing her policies online and lodged a complaint with the IA. It was revealed that Lam fabricated the story of a lucky draw to mask his actions, aiming to boost his sales ranking.

Lam intended to improve his sales performance and motivate his team, but his actions were deceptive and unethical.

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Despite incurring a financial loss, Lam's deceitful actions compromised his integrity and professionalism. The IA suspended Mr. Lam's license for seven months, considering his cooperation, admission of guilt, and lack of prior disciplinary issues.

The case serves as a warning against using deceitful tactics to manipulate clients and emphasizes the importance of integrity in the insurance industry.

Policyholders are advised to be cautious of promotions and regularly review their policies online for transparency and accountability. This case underscores the significance of honesty, integrity, and transparency in the insurance sector, urging both intermediaries and clients to uphold ethical standards and practices.