The insurance sector is considered an essential component of Macau SAR’s financial market, playing a key role in fostering close collaboration between Guangdong, Macau, and Hengqin, as well as in promoting the economic diversification of the SAR.
In recent years, the Macau government has been working on the improvement of Macau’s financial legal environment by establishing new legislation and amending existing regimes, including the Financial System Act, the Trust Law, and insurance-related laws. The entry into force of the amended Insurance Intermediary Activities Ordinance (IIAO) on August 1 2025 will continue that progress.
As a result of the above efforts, over 50% of new insurance policies were taken out by non-resident customers during 2023. Furthermore, around 7,600 people were engaged in insurance intermediary activities in Macau in 2024.
Currently, insurance-related issues are regulated by:
The Macau Insurance Ordinance (Decree Law No. 27/97/M), as amended by Law No. 21/2020;
The IIAO (Decree Law No. 38/89/M), which will be amended by Law No. 15/2024;
The regime for insurance contracts, regulated in the Commercial Code; and
The regime for private pension plans and private pension funds (Decree-Law No. 6/99/M).
The IIAO had not been reviewed and amended since 2003.
Macau insurance sector updates: licensing and supervision
The latest amendment to the IIAO introduces changes to address modern developments in two areas – the licensing system and supervision of the insurance sector – as follows.
The licensing system:
Classification of licence categories – the new legislation clarifies and refines the definitions of the concepts of an insurance agent, insurance broker, and insurance salesman, and clearly classifies the four categories of insurance intermediary licences.
The concept of “principal” – newly introduced, this refers to insurance entities that appoint agents or employ salespeople to carry out intermediary activities. It is also stated that insurance salespeople can only work for one principal.
A higher threshold for market entrance – in addition to only allowing Macau residents to apply, applicants are required to have at least a secondary school qualification, with working experience and technical training no longer accepted as qualifying criteria for obtaining the licence, unlike under the old legislation. Other factors, such as having a criminal or an administrative offence record, are also evaluated.
The validity period of the licence – extended from one year to two years.
Prohibition on licence transfers – the new legislation states that the transfer of a licence is forbidden.
Supervision of the insurance sector:
Scope of application – the IIAO applies to all means of intermediary activities relating to insurance products in Macau, including those carried out online. The IIAO also includes potential customers within the scope of the definition of “customers”, to enable better monitoring of intermediary activities.
Prior approval from the Monetary Authority of Macau (AMCM) – this is required in the event of a change to the structure of the dominant share capital, but notification at a later point is permitted for changes that do not involve controlling shareholders.
The duties of intermediaries – the new IIAO classifies general duties for all intermediaries, as well as specific duties of insurance agents, brokers, and salespeople.
Supervision powers of the AMCM – the AMCM serves as the supervisory authority, with the power to inspect related documents and equipment at any time, as well as to enforce preventive measures such as seizing documents or items in the event of violation acts.
Classification of administrative offences – these are graded light, serious, and very serious, with fines of up to MOP10 million for very serious offences.
Insurance and financial legislation in Macau: what comes next?
The integrated development of the Greater Bay Area is very much on the agenda, and there have been calls for the execution of insurance contracts in the cooperation zone. In response, the AMCM is working on setting up pilot schemes in Hengqin that will give access to insurance services such as insurance renewal, indemnification, and insurance withdrawal, as well as investigating the possibility of executing insurance contracts outside Macau.
In the meantime, the Macau government and the Legislative Assembly will continue to work on draft legislation for the Securities Act and Investment Funds Act.
