Insurance Broker License: Requirements & Transfer

By Easy Biz Team at Easy Solution (HK) Limited · Published 5 July 2026 · 6 min read

What Is an Insurance Broker License?

An Insurance Broker License is issued by the Insurance Authority (IA) under the Insurance Ordinance (Cap. 41). It authorises a company to carry on the business of insurance brokerage — which means advising on, arranging, or intermediary services in respect of insurance contracts, acting on behalf of the policyholder (not the insurer).

Since 23 September 2019, the Insurance Authority has been the sole statutory regulator of all insurance intermediaries in Hong Kong, including insurance brokers and insurance agencies. Prior to that, insurance brokers were self-regulated through approved bodies such as the Hong Kong Confederation of Insurance Brokers (HKCIB).

An insurance broker differs from an insurance agent: a broker represents the client (policyholder) and can recommend products from multiple insurers, while an agent represents a specific insurer and can only sell that insurer's products.

Who Needs an Insurance Broker License?

You need an insurance broker license if your business involves:

• Advising clients on insurance matters and recommending suitable insurance products
• Arranging or negotiating insurance contracts between clients and insurers
• Providing intermediary services for life insurance, general insurance, or long-term insurance
• Placing reinsurance on behalf of insurers (reinsurance broking)
• Managing insurance portfolios for corporate clients

Operating as an insurance broker without a valid license is a criminal offence under Cap. 41.

Insurance Authority Requirements

To obtain an Insurance Broker License, the applicant must satisfy the Insurance Authority's requirements:

• A registered Hong Kong limited company or a registered overseas company with a Hong Kong branch
• A fit and proper chief executive or controller who meets the qualification and experience requirements
• Minimum net asset value of HKD 100,000 maintained at all times
• Maintenance of professional indemnity insurance with adequate coverage
• Compliance with the Code of Conduct for Insurance Brokers issued by the IA
• AML/CFT compliance under the AMLO (Cap. 615)
• Proper systems for client money handling, record-keeping, and complaint handling
• At least one qualified Technical Representative (Broker) responsible for advising on insurance products

The application review process takes approximately 3–4 months, during which the IA conducts background checks and assesses the applicant's fitness and properness.

CEO / Chief Executive Qualifications

The Chief Executive (CEO) or controller of an insurance broker company must meet stringent qualification requirements:

• Be a fit and proper person as defined under Section 64ZG of Cap. 41
• Have at least 5 years of relevant experience in the insurance industry
• Hold recognized professional qualifications, such as:
  • Associate of the Chartered Insurance Institute (ACII)
  • Certified Insurance Counselor (CIC)
  • Fellow of the Chartered Insurance Institute (FCII)
  • Other qualifications recognized by the IA
• Pass the Insurance Intermediaries Qualifying Examination (IIQE) — specifically papers relevant to the type of insurance business
• Be approved by the Insurance Authority as the responsible officer

Net Asset Value Requirements

Under Cap. 41, an insurance broker company must maintain a minimum net asset value at all times:

Broker Type	Minimum Net Asset Value	Additional Requirement
Standard broker (no client money)	HKD 100,000	PI insurance required
Broker holding client money	Higher of HKD 100,000 or 5% of annual income	Segregated client accounts
Broker with long-term insurance	HKD 100,000 minimum	Enhanced compliance for life products

The net asset value must be maintained at all times and demonstrated in annual financial statements submitted to the IA.

Professional Indemnity (PI) Insurance

Every insurance broker must maintain Professional Indemnity (PI) Insurance to cover claims arising from negligence, errors, or breaches of duty in the course of business. The minimum coverage requirements are:

• The minimum limit of indemnity is the higher of HKD 3,000,000 or 5% of the broker's annual income (up to a cap)
• PI insurance must cover negligent acts, errors, or omissions in the provision of insurance broking services
• The policy must be maintained continuously — any gap in coverage must be reported to the IA
• The policy must be with an insurer authorized by the IA or a reputable international insurer
• Deductibles/excesses must be reasonable and not create undue risk exposure

Ongoing Compliance Obligations

Once licensed, insurance brokers must comply with ongoing requirements:

• Submit annual financial statements to the IA within 6 months of the financial year-end
• Maintain minimum net asset value at all times
• Maintain PI insurance continuously
• Comply with the Code of Conduct for Licensed Insurance Brokers
• Conduct AML/CFT compliance under AMLO (Cap. 615) — CDD, record-keeping, STR reporting
• Maintain proper records of client transactions, advice, and complaints
• Notify the IA of any material changes (ownership, CEO, business scope)
• Undergo periodic IA inspections
• Pay annual license fees

How to Acquire an Existing Insurance Broker Company

Acquiring an existing licensed insurance broker through share transfer is often faster than applying for a new license. The process involves:

Step 1: Identify a suitable licensed broker company and sign a non-disclosure agreement.

Step 2: Conduct thorough due diligence — verify the license on the IA's public register, review compliance history and IA correspondence, check financial statements, confirm PI insurance is current, and verify no open investigations.

Step 3: Sign the Sale & Purchase Agreement subject to IA approval.

Step 4: File a Section 64Z application with the IA for approval of the change in controllers. The IA will assess the new controllers' fitness and properness.

Step 5: Upon IA approval, complete the share transfer and file updates with the Companies Registry.

Step 6: Update the CEO/responsible officer if necessary — new officers must be approved by the IA.

Step 7: Take over the business. The broker license continues under the new ownership.

New Application vs Acquisition: Comparison

Factor	Acquire Existing	Apply New
Timeline	8–12 weeks	3–4 months
IA approval	Section 64Z (change of control)	Full license application
Cost	HKD 500K–1.5M	HKD 200K–400K (setup + compliance)
CEO requirement	Incumbent may stay temporarily	Must recruit from scratch
Compliance systems	Already in place	Must build from scratch

Frequently Asked Questions

What is the difference between an insurance broker and an insurance agent?

A broker represents the policyholder and can recommend products from multiple insurers. An agent represents a specific insurer and can only sell that insurer's products. Brokers require a broker license from the IA; agents are authorized under specific insurer appointments.

Can a foreign company obtain an insurance broker license in Hong Kong?

Yes, but it must establish a Hong Kong subsidiary or register a branch. The local entity must meet all net asset value, CEO qualification, and PI insurance requirements.

Does the insurance broker license need annual renewal?

Insurance broker licenses are valid for up to 3 years, subject to annual fee payments and ongoing compliance. The license is not technically renewed annually, but annual financial submissions and fee payments are mandatory.