The Law no.21/2020 (Amendment to Decree-Law no.27/97M of 30 June) , regulates the business of insurance companies, while the Insurance Agents and Brokers Ordinance, Decree-Law No. 38/89/M, of 5th June, as amended by Administrative Regulation No. 27/2001 and Administrative Regulation No. 14/2003, regulates the insurance intermediary sector.
Under the Law no.21/2020, 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 Insurance Agents and Brokers Ordinance also makes it compulsory for any person, individual of body corporate, wishing to conduct insurance intermediary business in the Macao SAR to obtain the necessary licence.
Under this Ordinance, 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: 2020-09-29 11:10:54