Insurance Comparative Guide

1 Legal framework

1.1 Which legislative and regulatory provisions govern the insurance sector in your jurisdiction?

Macau's insurance sector is primarily governed by the Macau Insurance Ordinance (MIO) (Decree‑Law no. 27/97/M, as amended by Law no. 21/2020 and republished by Chief Executive Dispatch no. 229/2020), which regulates market access as well as the conduct of insurance and reinsurance activities.

Insurers and reinsurers are also subject to prudential supervision under the Financial System Act (FSA) (Law no. 13/2023).

Insurance contracts are governed by Articles 962 to 1063 of the Macau Commercial Code, while private pension funds are regulated under the Private Pension Funds Law (Decree‑Law no. 6/99/M).

Insurance intermediaries are subject to the new Insurance Intermediary Activities Ordinance (IIAO) (Law no. 15/2024), effective 1 August 2025, introducing updated licensing, conduct, and supervisory requirements for agents, brokers and other intermediaries.

Furthermore, the MIO, FSA, IIAO and the Private Pension Funds Law are supported by additional rules issued by the Monetary Authority of Macau (AMCM). AMCM provides these rules through official notices and circulars, which all financial institutions must follow.

In addition to sector‑specific laws, several general laws apply, including:

• the Consumer Protection Law (Law 9/2021), which safeguards policyholder rights;
• the Standard Contractual Clauses Law (Decree‑Law 17/92/M), applicable to standard-form contract terms; and
• the Data Protection Law (Law 8/2005), governing the handling of client personal data.

1.2 Which bilateral and multilateral instruments on insurance have effect in your jurisdiction?

There are no bilateral or multilateral insurance‑specific treaties in Macau. However, in 2014, AMCM entered into a co-operation agreement with the Hong Kong Insurance Authority and the China Insurance Regulatory Commission, setting out a framework that enables the regulators in these jurisdictions to share information to facilitate the performance of their supervisory and monitoring functions relating to insurance fraud.

1.3 Which bodies are responsible for enforcing the applicable laws and regulations? What powers do they have?

The Monetary Authority of Macau (AMCM), which operates under the authority of the Macau Chief Executive, is the main regulatory authority overseeing insurance, reinsurance and intermediary companies. It supervises licensing, inspections, ongoing compliance, and enforcement actions. AMCM may suspend or revoke intermediary licenses, issue binding guidelines, impose penalties, and regulate advertising and conduct within the insurance sector.

1.4 What is the regulators' general approach in regulating the insurance sector?

Macau's regulatory approach emphasizes modernization, international alignment, consumer protection, and risk‑based supervision. Recent reforms include strengthened governance and enhanced AML requirements, reflecting a forward‑looking, stability‑focused regulatory philosophy.

2 Insurance contracts

2.1 What are the main types of insurance available in your jurisdiction?

Insurers in Macau may operate either life or non‑life insurance businesses. Both locally incorporated insurers and branches of foreign insurers may operate these lines. Life insurers in Macau focus on savings‑oriented and long‑term protection products. Common life insurance types include:

• Traditional Life Insurance – whole life, term life, endowment.
• Annuity Plans – long‑term income‑generating plans.
• Investment‑linked Assurance Schemes (ILAS) – investment‑linked life products.
• Medical and Critical Illness Insurance – life insurers are also authorised to underwrite these.
• Group Life / Medical Insurance – employer‑provided life and medical plans.

General insurers mainly cover short‑term risks. Key product categories include:

• Motor Insurance
• Household / Home Insurance
• Travel Insurance
• Medical Insurance (also offered by life insurers)
• Employee Compensation Insurance
• Professional Liability Insurance
• Fire Insurance
• Property & Casualty Products

2.2 Are all insurance contracts regulated? What terms do they typically include?

Yes, insurance contracts are regulated primarily under the Commercial Code and the MIO, which impose mandatory (imperative) provisions. Contracts typically include terms relating to premiums, coverage, exclusions, insured interests, obligations, duration, and claims procedures.

2.3 What are the formal and documentary requirements for conclusion of an insurance contract?

Insurance contracts must be documented in a policy issued by the insurer. A valid policy must clearly state: (1) the identity and address of all parties, including the insured and beneficiaries; (2) the type of insurance; (3) the insurable interest; (4) the risks covered; (5) the insured amount; (6) the start and end dates of the contract; (7) the premium and any additional charges; and (8) any deductibles, mandatory exclusions, and other agreed conditions.

In addition to these substantive elements, the insurer must comply with specific formatting and disclosure obligations. Any policy wording that creates termination rights, exclusions, causes of nullity, restrictive provisions, or risk‑related limitations must be specifically highlighted or otherwise made clearly distinguishable (such as by bold typeface, shading, or separate headings). Failure to do so may render such clauses unenforceable.

The insurer must also provide all accompanying pre‑contractual documents, such as product brochures, benefit illustrations, schedules of fees and charges, and any important information statements, ensuring that these are accurate, up‑to‑date, clear, and not misleading. These documents must be consistent with the issued policy.

Finally, the policy becomes formally concluded upon the insurer's acceptance of the application and issuance of the policy document (or provisional cover), provided the policyholder has met all disclosure obligations and paid the initial premium where required.

2.4 What are the procedural requirements for conclusion of an insurance contract?

Procedures include compliance with statutory disclosures, policy form standards, and language rules. If intermediaries are involved, they must comply with IIAO licensing requirements, including suitability and professional conduct obligations.

2.5 What are the respective obligations and liabilities of insurer and insured, both on concluding an insurance contract and during its term? What are the consequences of any breach?

Insurers must assess risk, honour claims, maintain solvency, and follow regulatory requirements. Insureds must disclose material facts honestly, pay premiums on time, and mitigate losses. Breach of these duties, such as misrepresentation, nondisclosure, non‑payment of premium, or failure to notify risk changes, may lead to reduced or refused

3 Making a claim

3.1 What are the formal and documentary requirements for making a claim?

A policyholder generally must submit a claim in accordance with the terms of the insurance contract. In practice, claim submission generally requires a completed claim form, evidence supporting the claim, identity documentation, and proof of insurable interest where applicable. Requirements may vary by product.

3.2 What are the procedural requirements for making a claim?

The procedural steps for making an insurance claim are primarily derived from the insurance contract itself. However, insurers must follow mandatory rules of the Commercial Code and MIO concerning timely acknowledgment and fair processing. Policyholders must cooperate by providing requested information.

3.3 On what grounds can the claim be denied? How can the insured challenge the denial of claim?

Claims may be denied for misrepresentation, non‑disclosure, policy exclusions, fraud, absence of coverage, or lapse of policy. Insureds may challenge denials in Macau courts, which have exclusive jurisdiction over insurance disputes arising in Macau.

3.4 How can third parties make a claim?

Third‑party claims arise when a beneficiary has been designated or, if none was appointed, when the policyholder's legal heirs succeed to the policy benefits upon the policyholder's death. A beneficiary may claim directly by submitting proof of the insured event, identification, and any documents required under the policy. If no beneficiary is named, the heirs must provide death documentation and evidence of heirship to claim the proceeds. Insurers must then verify entitlement and process the claim in accordance with the policy and Macau law.

4 Form and structure of insurers

4.1 What types of insurance companies are typically found in your jurisdiction?

Insurance Companies: Insurance companies operating in Macau are primarily categorized as two distinct branches: Life Insurance or Non-life/General Insurance. Macau law does not grant composite licenses, meaning an insurance company cannot simultaneously operate both life and non-life businesses.

Reinsurance Companies: Entities intending to sell reinsurance products in Macau must obtain reinsurance business authorization. However, Macau regulations also allow licensed insurers to accept, manage, and perform reinsurance contracts (within the authorized categories).

4.2 How are these insurance companies typically structured and funded?

Insurance companies operating in Macau are tightly regulated and must follow specific structural and financial requirements.

Local insurers must be incorporated as public limited companies (joint stock companies) and can only conduct insurance business. They cannot operate both life and general insurance simultaneously. Their boards must include at least three directors, with at least one Macau resident, and all key personnel must meet strict "fit and proper" standards regarding integrity, financial soundness, and professional experience.

Foreign insurers may operate through branches or representative offices. Branches must function as independent centres with their own staff, accounting, and claims handling, and must appoint at least one Macau‑resident general trustee. Representative offices are limited to liaison activities and cannot conduct insurance business.

Funding requirements are substantial. Local insurers must maintain minimum paid‑up capital: MOP 30 million for general insurance and MOP 60 million for life insurance. Half of this must be deposited in a Macau bank under the AMCM's control before operations begin. Foreign branches must establish an establishment fund of MOP 10–15 million (depending on the business line), also partly deposited under regulatory control.

All insurers must maintain sufficient technical reserves (claims, mathematical, and unearned premium reserves, depending on the type of insurance business pursed) backed by approved assets held in Macau. They must also maintain solvency reserves based on premiums, risk capital, and actuarial calculations. AMCM imposes strict rules on investment, reporting, auditing, and asset quality to ensure solvency and policyholder protection.

4.3 Are there any restrictions on foreign ownership of insurance companies?

Macau law does not set fixed proportional caps on foreign ownership.

However, there are special restrictions for licensing of foreign branch offices. A foreign insurer intending to establish a branch in Macau must have been operational for more than 5 years in its home country and is limited to conducting the same type of insurance business approved in its home country.

5 Authorisation

5.1 What authorisations are required to provide insurance services in your jurisdiction? What activities do they cover?

Insurers and Reinsurers intending to operate insurance or reinsurance business in Macau on a regular basis must obtain authorisation from the Chief Executive, prior to commencement of operations. Authorization is granted per business line, meaning entities may be licensed as "Life" or "Non-Life" insurers, and composite licenses are not permitted under Macau law.

The authorization for insurers covers the conduct of insurance business, which includes the underwriting, acceptance, fulfilment and management of insurance contracts, as well as related insurance operations.

The authorization for reinsurers covers only the conduct of reinsurance business, which includes the underwriting, acceptance, fulfilment and management of reinsurance contracts.

Foreign insurers may establish representative offices, but these are not permitted to conduct insurance business. Their functions are limited to representing the parent company, including facilitating communication or handling matters related to reinsurance interests. They cannot issue policies, accept risk, or conduct any regulated insurance activity in their own name.

For foreign reinsurers, they can establish a presence in Macau either by incorporating a local company or by setting up a representative office, following requirements under the MIO that closely resemble those for insurers, with some specific distinctions. A representative office acts solely as the local extension of an overseas reinsurer and cannot independently conduct any regulated reinsurance activities. Its role is limited to placing reinsurance contracts for the entity it represents and handling matters in Macau arising from those contracts. It may accept reinsurance agreements on behalf of that entity and oversee related local interests. However, it cannot exceed these functions, keep any portion of premiums, or acquire real estate other than what is strictly necessary for its basic establishment and operation.

5.2 What requirements must be satisfied to obtain authorisation?

To obtain authorisation to operate as an insurer or reinsurer in Macau, an applicant must satisfy the following key requirements:

1. Corporate Form
   
   • Must be incorporated as a public limited company (joint stock company) if locally established.
   • Foreign insurers must apply to operate through a branch.
2. Minimum Capital
   
   • MOP 30 million for non‑life insurers.
   • MOP 60 million for life insurers.
   • 50% of capital must be paid in cash at incorporation and deposited in a Macau‑licensed bank under AMCM's control.
3. Shareholder ("Fit and Proper") Requirements
   
   • Major shareholders must demonstrate good reputation.
   • No convictions for fraud, dishonesty, money laundering, etc.
   • Financial soundness and clarity of ownership structure required.
4. Management Suitability
   
   • Directors, supervisors and key managers must show integrity, adequate insurance/financial experience and professional qualifications.
5. Business Plan & Technical Capacity
   
   • Submission of a three‑year business plan, including:
   • • Governance structure
     • Risk management & internal controls
     • Actuarial bases and reserving methodology
     • Reinsurance strategy
     • Human, financial and IT resources
6. Required Documentation
   
   • Articles of association
   • Identification and background documents of shareholders and directors
   • Proof of capital, organisational structure, AML/CTF policies
7. Regulatory Assessment
   
   • AMCM evaluates financial viability, market impact, ability to maintain solvency, and whether group structure enables effective supervision.
8. Additional Requirements for Foreign Insurers
   
   • Minimum 5 years of operation in home jurisdiction
   • Authorised abroad for the same classes to be operated in Macau
   • Appointment of a Macau‑resident general representative
   • Establishment fund (MOP 10–15 million depending on the business line)

5.3 What is the procedure for obtaining authorisation? How long does this typically take?

The entity intending to operate the business must submit an application to AMCM. AMCM will then conduct a substantive assessment based on a series of criteria, including the company's financial capacity (including minimum capital requirements), the suitability of its shareholders, directors, and key management personnel, and the adequacy of the corporate governance structure and business plan.

Following AMCM's review and opinion, the final authorization of an insurer must be approved by the Chief Executive, in the form of an Executive Order and published in Macau's Official Gazette.

The MIO does not explicitly state the time limit for the Chief Executive approval. Applications should typically be decided within 9 to 18 months from the date the authorities receive all necessary and complete information. Furthermore, after obtaining the Chief Executive's authorization, the relevant entity must complete registration formalities within 120 days.

6 Regulatory capital and liquidity

6.1 What minimum capital requirements apply to insurance companies in your jurisdiction?

For Life Insurers, the statutory minimum capital amount is MOP 60,000,000.

For General/Non-Life Insurers, the statutory minimum capital amount is MOP 30,000,000.

6.2 What liquidity requirements apply to insurance companies in your jurisdiction?

Macau's prudential framework assures that insurance companies maintain "liquidity requirements" through technical reserve requirements, solvency margins, and rules governing the assets that must be maintained to back liabilities.

• Technical Reserves: Insurance companies must maintain adequate technical reserves, which must be backed by compliant assets. AMCM has specific reserve backing requirements for exceptionally high losses or fronting policies.
• Asset Diversification and Liquidity: When managing the asset portfolio backing reserves, insurance companies must consider asset liquidity, safety, and diversification to ensure the ability to fulfill contractual obligations promptly in the event of claims.
• Solvency Margin: Insurance companies must maintain the legally required solvency margin to address potential financial risks, with specific calculation standards stipulated by AMCM through notices or circulars.
• Internal Controls: Companies must establish comprehensive internal control measures to continuously monitor the matching of assets and liabilities to prevent liquidity crises.

7 Supervision of insurance groups

7.1 What requirements apply with regard to the supervision of insurance groups in your jurisdiction?

According to Articles 10-12 of FSA:

AMCM can inspect financial institutions on-site and monitor them off-site. If needed, AMCM can extend its oversight to the entire group that a financial institution belongs to, including its related companies. During inspections, AMCM has the right to review records, accounts, and electronic data, and can seize documents if necessary.

For Macau-based financial institutions:

• If a company owns more than 50%of another company, AMCM will supervise them as one group.
• If ownership is 50% or less, AMCM decides whether to apply consolidated supervision.
• AMCM can cooperate with overseas regulators to supervise international groups through agreements or joint mechanisms.

Companies under consolidated supervision must provide AMCM with information about themselves and their related companies. This information must be complete, accurate, and truthful. Overseas branches in Macau may share necessary data with their home country regulators for risk assessment.

8 Reporting, governance and risk management

8.1 What key disclosure requirements apply to insurance companies in your jurisdiction?

Insurance companies must clearly disclose key or unusual exclusion clauses in policy documents; failure to fulfill this disclosure obligation may lead to regulatory compliance issues.

Besides, under the MIO, insurance companies in Macau must publicly disclose their annual financial statements, business report summaries, supervisory and auditor opinions, shareholder information, and the names of governing body members. Companies with overseas subsidiaries must also publish consolidated accounts, while foreign insurers' Macau branches must publish branch‑level financial statements and business summaries, and submit their parent company's accounts to AMCM.

8.2 What key reporting requirements apply to insurance companies in your jurisdiction?

• Change in Qualified Shareholding: Direct or indirect acquisition of 10% or more of a qualified shareholding, or subsequent cumulative increases/decreases exceeding 5%, must obtain prior approval from AMCM.
• Outsourcing Arrangement Notification: After signing significant outsourcing contracts or cloud outsourcing contracts, insurance companies must notify AMCM within 30 days.
• Financial Reporting: Insurance companies in Macau must regularly disclose quarterly and annual financial information, actuarial and statistical reports, management and governance details (for local insurers), annual consolidated accounts (for foreign insurers), ensure all disclosures are accurate and complete, and provide any additional information required by AMCM.

8.3 What key governance requirements apply to insurance companies in your jurisdiction?

Insurance companies in Macau must comply with a comprehensive corporate governance framework established under the AMCM Corporate Governance Guideline for Authorized Insurers (Guideline under Notice no.016/2013‑AMCM). The guideline requires insurers to maintain sound, transparent, and prudent management practices to safeguard policyholders and ensure market stability.

The Board of Directors holds primary responsibility for setting the insurer's long‑term strategic direction, approving its risk appetite, and overseeing sustainability and financial soundness. The Board must regularly review business strategies, monitor senior management performance, and ensure that oversight and operational roles remain clearly segregated.

The guideline mandates an appropriate board composition, requiring directors to collectively possess sufficient expertise, integrity, and independence. Directors must act objectively, avoid conflicts of interest, and exercise informed and independent judgment.

Insurers must implement a robust risk management and internal control system, including independent risk management, actuarial, compliance, and internal audit functions. These functions must be properly resourced, operate independently, and report to the Board when needed.

A risk‑aligned remuneration policy is required, ensuring compensation does not incentivize excessive risk‑taking. Insurers must also uphold high standards of financial reporting, disclosure, and transparency, providing accurate information to stakeholders and AMCM.

Senior management is responsible for executing Board‑approved strategies, ensuring effective internal controls, and maintaining regulatory compliance. AMCM performs ongoing supervisory reviews and may require corrective actions if governance standards are not met.

8.4 What key risk management requirements apply to insurance companies in your jurisdiction?

The Board of Directors is responsible for setting the insurer's risk strategy, defining its risk‑taking capacity, and ensuring robust oversight of all material risks. The Board must regularly review risk policies, monitor implementation, and ensure the framework remains appropriate to the insurer's size, nature, and complexity.

Insurers must establish an independent risk management function with adequate authority and resources to identify, assess, monitor, and control risks—including underwriting, market, credit, liquidity, operational, and strategic risks. This function must have direct access to the Board.

A strong internal control system is required, supported by clear policies, procedures, reporting lines, and segregation of duties. An independent internal audit function must periodically evaluate the effectiveness of risk management and controls.

The actuarial function plays a critical role in assessing reserving adequacy, pricing assumptions, and solvency‑related risks.

Finally, insurers must maintain risk‑aligned remuneration policies that avoid encouraging excessive risk‑taking and must comply with ongoing AMCM supervisory reviews.

9 Senior management

9.1 What requirements apply with regard to the management structure of insurance companies in your jurisdiction?

As noted earlier, insurers in Macau may operate either as locally incorporated public limited companies or as branches of foreign insurers..

Locally Incorporated Insurers

Under the Macau Insurance Ordinance (MIO), a locally incorporated insurer must meet specific governance and management structure requirements:

• The Board of Directors must comprise at least three directors, and at least one director must be a Macau resident.
• Although the MIO does not impose a unique corporate governance model, insurers must maintain the governance bodies required under Macau company law, including:
• • Board of Directors
  • Supervisory Board (or a sole supervisor)
  • General Assembly of Shareholders
  • Company Secretary

These bodies collectively ensure oversight, accountability, and adherence to regulatory and corporate governance standards.

Branches of Foreign Insurers

Foreign insurers operating in Macau through a branch must appoint one or more General Representatives.

• At least one General Representative must be a Macau resident.
• General Representatives must possess sufficient authority to legally bind the insurer in Macau and are responsible for ensuring compliance with local regulatory obligations.

9.2 How are directors and senior executives appointed and removed? What selection criteria apply in this regard?

• Fit-and-Proper Assessment: Directors and supervisory members must pass AMCM's fit-and-proper assessment.
• Selection Criteria: Assessment criteria include the integrity, professional competence, financial soundness, and past performance of the management personnel.
• Approval Mechanism:
• • For locally incorporated insurers (public limited companies), directors and supervisory board members are appointed through board resolutions, in accordance with Macau company law.
  • For branches of foreign insurers, general trustees are also appointed through board resolution
• Special Registration: Before taking office, the following persons must be registered with the Monetary Authority of Macau (AMCM) under the Special Register (Arts. 47–51):
• • Members of the Board of Directors
  • Members of the Supervisory Board (or sole supervisor)
  • Individuals exercising effective management powers, even if not formally directors
  • General Representatives (for foreign branches)
• They may not perform any duties until registration is completed.

Removal of directors and senior executives follows the same governance framework as their appointment and is typically effected through a board resolution. Any change to the composition of the board of directors, supervisory board, company secretary, or any individual exercising effective management powers must be reported to and registered with AMCM, as such changes may affect the regulator's ongoing assessment of the insurer's suitability and governance standards.

9.3 What are the legal duties of directors and senior executives of insurance companies?

• Ultimate Compliance Responsibility: The board of directors and senior management retain ultimate responsibility for ensuring the company's operational resilience and regulatory compliance; outsourcing cannot diminish their accountability.
• Internal Control Responsibilities: Must establish and maintain effective monitoring procedures, business continuity plans (BCP), and exit strategies.

9.4 How is executive compensation regulated in your jurisdiction?

Under the Guideline of Notice no. 16/2013, it is required that variable (performance‑based) remuneration be closely linked to individual, departmental, and organisational performance while avoiding incentives that promote excessive risk‑taking.

Compensation structures should balance fixed and variable elements and consider long‑term value creation, risk‑coverage periods, and the difficulty of reducing bonuses during downturns.

Performance assessment must span multiple years to reflect long‑term risks, and when variable pay represents a significant proportion of total remuneration, a substantial portion should be deferred based on the time needed for related risks to materialise. Companies must also retain the right to reduce or claw back bonuses when misconduct or excessive risk‑taking harms financial stability, and guaranteed bonuses are discouraged.

Variable pay must align with the insurer's capital management strategy and financial soundness. Performance metrics should be clearly defined, objective, and include both financial and non‑financial criteria such as compliance, risk management, market conduct, and fair treatment of policyholders. Assessment should not overly emphasise individual results but also consider departmental and group‑wide performance.

Where variable pay includes equity‑based components, measures such as minimum vesting periods, holding requirements, and post‑departure share‑retention rules must ensure alignment with long‑term corporate interests.

Severance payments (e.g., "golden parachutes") must be properly governed, limited, and reflect the company's financial condition. No severance should be paid if the company is insolvent or if the employee's conduct contributed to such financial distress.

10 Change of control and transfers of insurance companies

10.1 How are the assets and liabilities of insurance companies typically transferred in your jurisdiction?

In Macau, the transfer of assets and liabilities of insurance companies, particularly insurance portfolios, is tightly regulated under the MIO:

1. Transfer of Insurance Liabilities
   Unexpired liabilities (premiums, claims reserves, or both) may only be transferred with prior approval from the AMCM. Once approved, the decision must be published in the Official Gazette and announced in one Chinese and one Portuguese newspaper. For life insurance, the transfer is prohibited if more than 20% of insured persons object.
2. Technical Provisions
   When liabilities are transferred (e.g., merger, demerger, portfolio transfer), only the portion of technical reserves necessary to support the transferred portfolio may be moved. This protects the solvency of both transferring and receiving insurers.
3. Corporate Restructuring
   Mergers, splits, or organisational changes involving insurers require prior approval by the Chief Executive, after consultation with AMCM. The factors for consideration include market stability, solvency, and policyholder protection.
4. Liquidation
   If the insurer is under liquidation, AMCM or the appointed intervention committee may oversee or mandate transfers of assets and liabilities to protect policyholders. Assets devoted to cover technical provisions form special property that must first satisfy policyholder claims.

Overall, portfolio or liability transfers in Macau are highly supervised, require regulatory approval, involve public disclosure, and emphasise policyholder protection and solvency stability.

10.2 What requirements must be met in the event of a change of control?

According to MIO, any direct or indirect acquisition or increase of a qualified shareholding in an insurance company requires prior approval from AMCM.

As defined in MIO, "qualified shareholding" refers to any shareholding representing, directly or indirectly, 10% or more of the share capital or voting rights of the insurance company, or a shareholding that can exert significant influence on management.

Any acquisition or subsequent increase that reaches or exceeds the threshold through one or more transactions requires prior AMCM approval.

Any subsequent cumulative increase or decrease exceeding 5% must also be reported to AMCM for prior approval, unless the nature of the transaction makes prior approval impossible, in which case notification must be given within 30 days.

Acquisition or increase of a qualified shareholding without AMCM's prior approval results in the prohibition of exercising voting rights associated with that shareholding and may lead to the annulment of resolutions adopted using those votes, as well as potential administrative sanctions.

In addition, changes to the share capital of an insurance company also require prior approval from the Chief Executive, following consultation with AMCM.

The insurer itself must immediately notify AMCM once it becomes aware of any acquisition, increase, or reduction of a qualified shareholding.

11 Consumer protection

11.1 What requirements must insurance companies comply with to protect consumers in your jurisdiction?

Insurance activities are also regulated by the Consumer Protection Law (Law No. 9/2021), except the provisions on distance contracts, off‑premises contracts, and prepayment contracts do not apply to insurance contracts.

According to the Consumer Protection Law, insurance companies are prohibited from engaging in misleading or aggressive commercial practices, such as providing incomplete or incorrect information during marketing.

11.2 What other measures has the state implemented to protect consumers in the insurance sector?

Macau has introduced a range of measures to enhance consumer protection in the insurance sector through industrial guidelines. Recently, one of the major reform is the introduction of IIAO, which significantly strengthens protections by imposing higher licensing and qualification requirements for intermediaries, requiring suitability assessments, and increasing penalties for misconduct.

Furthermore, there is a robust framework that has also reinforced conduct obligations for intermediaries. Insurance intermediaries must provide suitable advice based on the client's circumstances, handle client funds correctly, avoid acting without policyholder consent, and refrain from misleading or anti‑competitive practices. These requirements aim to improve the quality and transparency of insurance sales and distribution.

Macau further protects consumers by offering multiple dispute‑resolution channels. Consumers may negotiate with insurers directly, use the Financial Consumption Dispute Mediation Scheme, jointly operated by AMCM, the Macau Consumer Council and the Macau World Trade Center Arbitration Center, providing a specialized mediation channel for handling financial consumption disputes including insurance.

12 Data security and cybersecurity

12.1 What is the applicable data protection regime in your jurisdiction and what specific implications does this have for insurance companies?

The primary data‑protection regime in Macau is the Personal Data Protection Law (Law No. 8/2005). commonly known as the PDPA. This law establishes the legal framework governing the processing, storage, transfer and security of personal data across all sectors, including insurance.

Specific impacts on insurance companies include:

• Confidentiality and Compliance Obligations: Insurance intermediaries and insurance companies have a statutory obligation to comply with personal data protection laws and regulations and must strictly maintain the confidentiality of client information.
• Limitations on Outsourcing: When insurance companies outsource business, contracts must explicitly include terms regarding data protection, confidentiality, and liability attribution.
• Cross-Border Data Transfer: When making cross-border outsourcing arrangements, insurance companies must additionally consider risks related to data transfer and, where applicable, notify clients.
• Cloud Service Requirements: According to the Insurance Industry Cloud Outsourcing Guidelines effective in 2025, when using cloud services, insurance companies must enhance due diligence on service providers to ensure their compliance with the requirements of the Personal Data Protection Law.

12.2 What is the applicable cybersecurity regime in your jurisdiction and what specific implications does this have for insurance companies?

Insurance companies must comply with Law No. 13/2019 "Cybersecurity Law" and its supplementary regulations "Cybersecurity – Management Standards Framework" and "Cybersecurity – Incident Warning, Response and Reporting Standards", where insurance companies are also covered.

Besides, they must also comply with Law No. 8/2005, the "Personal Data Protection Law," as well as Law No. 11/2009, the "Law on Combating Computer Crime," which addresses criminal liability for computer-related offenses.

Regarding the outsourcing and cloud service, AMCM has issued the "Insurance Industry Outsourcing Guidelines" and the "Insurance Industry Cloud Outsourcing Guidelines" (effective May 1, 2025), which impose stringent requirements on the information security and operational resilience of insurance companies.

When undertaking significant outsourcing or cloud service arrangements, insurance companies must conduct comprehensive Due Diligence, assessing the supplier's information security standards, technical capabilities, and financial soundness. They are also required to notify AMCM within 30 days of signing the contract.

Outsourcing contracts must explicitly specify the data location, security control measures, audit rights, and Exit Strategies. These provisions must also comply with the requirements of Macao's Personal Data Protection Law.

13 Financial crime

13.1 What provisions govern money laundering and other forms of financial crime in your jurisdiction and what specific implications do these have for insurance companies?

The Macau insurance industry is bound by Law No. 2/2006 (Prevention and Suppression of Money Laundering Crimes) and Law No. 3/2006 (Prevention and Suppression of Terrorist Financing Crimes). Furthermore, AMCM also issued regulatory guidelines for insurers and insurance intermediaries under Notice No. 15/2014, as subsequently amended by Notices Nos. 13/2016 and 08/2019, which establish detailed AML/CFT obligations such as customer due diligence, ongoing monitoring, record‑keeping, suspicious‑transaction reporting and internal control requirements. These guidelines form the core of the sector‑specific AML/CFT framework applicable to insurance institutions in Macau, ensuring alignment with FATF‑style international standards.

In order to combat insurance fraud activities, in 2014, AMCM signed a cooperation agreement with regulatory authorities in Hong Kong and Mainland China, establishing an information-sharing framework to enhance the monitoring of cross-border insurance fraud

14 Competition

14.1 What specific challenges or concerns does the insurance sector present from a competition perspective? Are there any pro-competition measures that are targeted specifically at insurance companies?

Macau law strictly prohibits insurance companies from engaging in unfair competition, particularly disseminating false information about insurance companies, to avoid harming their reputation or gaining private advantage by providing clients with incorrect information.

Article 17 of the FSA stipulates that financial institutions are prohibited from obtaining a dominant position in the financial market or restricting competition through agreements or other means. Furthermore, under Article 19 of the MIO, the regulator will also assess whether any of the insurer's development plans conflict with one another and whether they can sustain fair and healthy market competition when considering an application for a new license.

The Macau Commercial Code also details various types of unfair competition practices, generally applicable to all companies and not only to insurance companies, including:

Acts Causing Confusion: Prohibits the use of methods likely to cause confusion among consumers regarding the origin of products or the identity of entities.

Misleading Acts and Disparagement: Prohibits engaging in misleading advertising or acts that damage the commercial reputation of competitors.

Exploitation of Another's Reputation: Prohibits the unfair exploitation of another party's commercial symbols or achievements for gain.

Pro-Competition Measures and Market Opening:

Guangdong-Hong Kong-Macau Greater Bay Area (GBA) Initiative: In accordance with the GBA development outline, the government has implemented measures to promote financial openness, allowing Macau insurers to establish after-sales service centers in Mainland Chinese cities within the GBA. This helps enhance market efficiency, optimize customer experience, and foster market competition.

Insurtech Sandbox: Under FSA, AMCM may grant temporary permits to eligible entities (including insurance companies and technology firms) to test innovative projects in a controlled environment. This is considered a progressive approach to driving technological advancement and market competition within the industry.

15 Restructuring and insolvency

15.1 What provisions govern insolvency in your jurisdiction and what specific implications do these have for insurance companies?

The insolvency regulatory framework for the insurance companies is primarily constituted by the MIO, FSA and the Civil Procedure Code (CPC). Insurance companies are subject to the ongoing supervision of AMCM.

The following outlines the regulatory content and its specific impact on insurance companies:

Definition and Procedures for Insolvency

A company is deemed insolvent under Macao law when it is in a state of cash flow insolvency, meaning it is unable to meet its financial obligations as they come due. Key indicators of this condition include persistent failure to settle debts, the departure of senior management from Macao due to a liquidity crisis, the abandonment of the company's principal place of business, or evidence of misconduct such as asset dissipation or fraudulent reporting of liabilities.

Regulatory Intervention and Liquidation Process

When an insurance company's financial condition deteriorates to a degree that threatens policyholder interests or financial stability, the Chief Executive, acting upon the advice of AMCM, may initiate a statutory intervention. This typically involves the appointment of a receivership committee to assume control of the company's operations. Following intervention, the company is prohibited from underwriting new business, renewing existing policies, or increasing policy limits. Concurrently, all debt enforcement proceedings and legal actions against the company are automatically suspended to allow for an orderly resolution.

Specific Impact on Insurance Companies

• Cessation of Business Operations: Upon the initiation of liquidation proceedings, the insurance company is mandated to immediately cease all new underwriting activities. This prohibition extends to the renewal or extension of any existing insurance or reinsurance contracts, as well as any increase in the coverage amounts of such contracts. The company enters a state of operational freeze, permitting only activities directly related to the wind-down process.
• Suspension of Enforcement Proceedings: A critical protective measure is triggered by the appointment of a receivership committee. In accordance with Article 107 of the MIO, this appointment mandates the suspension of all enforcement and legal recovery actions against the insurer.
• Status of Insurance Contracts: The bankruptcy declaration itself does not serve as an automatic termination event for in-force insurance policies. However, the bankruptcy administrator is vested with the discretionary power to unilaterally terminate these contracts.

16 Trends and predictions

16.1 How would you describe the current insurance landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Macau's insurance sector is undergoing rapid and comprehensive modernization, driven by regulatory upgrades, technological evolution and deeper regional integration. A cornerstone of this transformation is the IIAO, effective since 1 August 2025, which reinforces governance standards, elevates professional requirements and brings Macau's regulatory framework closer to international best practices. Complementing this shift, the AMCM has introduced new guidelines on outsourcing and cloud outsourcing, strengthening operational resilience, enhancing oversight of third‑party arrangements and further bolstering policyholder protection.

Referral business is another key trend. As Hong Kong tightens its rules, Macau is seeing increased interest from insurers and intermediaries seeking more flexible referral arrangements. In response, the AMCM introduced Guidelines for Life Insurance Referral Business (effective 20 November 2025) to enhance transparency and consumer protection.

The market is also preparing for the implementation of a risk‑based capital (RBC) regime, expected by 2027, which will reinforce solvency and risk governance.

On the development side, Macau's new Investment Fund Law and its strategy to build a wealth management industry with local characteristics are expected to expand demand for specialised insurance solutions for asset managers. Regional integration—particularly with Hengqin—will support cross‑border insurance products, especially medical, retirement, and motor coverage.

In the next 12 months, Macau is expected to continue refining referral business practices, preparing for RBC implementation, and advancing discussions on pension reform, including moves toward a mandatory provident fund (MPF) style system.

17 Tips and traps

17.1 What are your top tips for insurance companies operating in your jurisdiction and what potential sticking points would you highlight?

Macau's insurance sector is rapidly evolving, requiring insurers to be proactive and forward‑looking. Companies should prioritise robust governance and a strong compliance culture. This is particularly relevant under the IIAO, where elevated compliance obligations may pose particular challenges for smaller operators; increased regulatory and conduct risks in referral arrangements, where insurers must rigorously prevent unlicensed activities and mis‑selling; and additional operational pressures arising from stricter outsourcing requirements.

Insurers should also begin preparing for the upcoming risk‑based capital (RBC) regime, expected by 2027, by upgrading risk models, reassessing capital strategies and embedding stronger risk management frameworks. At the same time, they should capitalise on new business opportunities arising from Macau's wealth‑management push and the deepening integration with the Greater Bay Area, especially cross‑border medical, retirement and specialty products that cater to Mainland Chinese clients.

Besides, the ongoing pension reforms, particularly any transition toward an MPF‑style system, may require significant structural and strategic adjustments by insurers.

Overall, insurers that invest early in compliance, technology, and GBA‑aligned product innovation will be best positioned to navigate regulatory expectations and capture new growth opportunities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.