Target Insurance boss goes to ICAC

Target Insurance (6161) executive director Lin Feng has gone to the Independent Commission Against Corruption claiming the company has been treated unfairly under the new management.

Lin argued that the Insurance Authority's takeover of the insurer is unfair and questioned whether Hong Kong is still a free economy.

Lin did not disclose the evidence he had but said he would elaborate more later.

The Insurance Authority announced last Friday that it had taken over the affairs and assets of Target Insurance by exercising its power conferred by the Insurance Ordinance so as to "maintain the market stability and protect the policy holders' interests."

The regulator said Target might have breached statutory requirements under the Insurance Ordinance and also found deficiencies in Target's corporate governance.

The regulator assigned accounting firm Deloitte to take over the management of Target, which will investigate and assess the financial situation of the insurer and submit the results to the authority.

The company, Hong Kong's biggest taxi insurer, had recently informed taxi owners that it is considering revoking local taxi insurance policies after a seven-day notification period.

On November 12, it said it would consider ceasing renewals of taxi insurance policies due to potential losses from a possible prolonged involuntary suspension of foreign currency activities, and to protect its profitability. As a result of the revocation, the industry projected that more than 10,000 taxis across Hong Kong will be forced to cease operation within a week.

Shares of Target were suspended last Wednesday.