The Macau Insurance Ordinance, Decree-Law No. 27/97/M of 30 June as amended by Law No. 21/2020, regulates the business of insurance companies, while the Legal framework for the carrying on of insurance intermediary business, Decree-Law No. 38/89/M of 5 June as amended by Administrative Regulation No. 27/2001 and Administrative Regulation No.14/2003, regulates the insurance intermediary sector.
Under the Macau Insurance Ordinance, insurance companies can be licensed as:
- A locally incorporated company
- A branch with head office overseas; and
- A representative office.
While a locally incorporated company or a branch of a foreign insurance company can conduct insurance business in the Macao SAR, a representative office of a foreign insurance company, on the other hand, is prohibited from transacting insurance business.
Regarding the insurance intermediary sector, the Legal framework for the carrying on of insurance intermediary business also makes it compulsory for any person or individual of body corporate wishing to conduct insurance intermediary business in the Macao SAR to obtain the necessary license.
Under the Legal framework for the carrying on of insurance intermediary business, insurance intermediaries are classified into three categories:
- Insurance Agents: Either individuals or corporate entities who act in the name of and on behalf of one or more insurers;
- Insurance Salesmen: Individuals who are simultaneously employees of insurance companies, of corporate insurance agents, or of insurance brokers and who act, whilst carrying on the business of an intermediary, in the name of and on behalf of any one of the said entities.
- Insurance Brokers: corporate entities, formed with the exclusive object of carrying on the business of an insurance intermediary, who act in the name of and on behalf of the insureds.
Last revision: 2021-07-26 16:46:53