Passage of the Amendment Bill for RBC
On6 July 2023, the Legislative Council passed the Insurance (Amendment) Bill 2023 to provide the legislative framework for the implementation of the Risk-based Capital (RBC) regime for the Hong Kong insurance industry.
Meanwhile, the Insurance Authority (IA) has started the preparatory work on drafting detailed requirements of the RBC regime to be followed by the public consultation on subsidiary legislation. Their target is to commence the RBC regime within 2024.
We welcome the passage of the Amendment Bill. Over the past years, our two Task Forces on RBC under General Insurance Council (GIC) and Life Insurance Council (LIC) have provided support to resolve many technical issues and we will continue working hand-in-hand with our regulator to ensure a smooth transition to the RBC regime.
Letter to the IA on Chatbots and AI
Chairmen
of the InsurTech Task Forces and Legal Working Groups under GIC and LIC and the Professional Standards Working Group under LIC had a productive discussion about the popularization of chatbots and the deployment of Artificial Intelligence (AI), as well as our future plans for addressing this rapidly-evolving issue.
In mid-July, HKFI issued a letter to Mr Peter Gregoire, IA’s Head of Market Conduct and General Counsel, in response to the latest Conduct in Focus published by the IA which outlined the regulatory lens over the use of Chatbots and AI. We fully acknowledged the regulatory approach and appreciated the clarity provided by the regulator. Our focus going forward will be on facilitating the deployment of chatbots and AI in a compliant manner. We will maintain an active dialogue with the IA.
Green Insurance
The Task Force on Green Insurance has been busy finalising the consultancy study report. At the meeting held on 30 June 2023, we gave a brief to Members of the Task Force on how to interpret the climate reporting framework and introduced various data initiatives pertinent to property and health insurance. We also shared our climate charter proposal.
Given the magnitude of the project and the need of knowledge building, we are going to launch the work streams in phases with appropriate training for Members. For the first phase, we will share our study on climate reporting framework and climate data frameworks to all Members. The study covers detailed guidance on climate reporting and potential roadmaps for climate data developments on property and health insurance. Our findings incorporate feedback received during consultations with the local insurers.
For the second phase, the focus will be on the introduction of the industry charter. Thanks to the constructive comments from our Members and stakeholders, which help to ensure the final output accurately reflects the latest market landscape and supports effective local implementation. We will engage our Members and stakeholders to secure broad-based support across the industry and an engagement session will be held to facilitate their understanding on the charter and solicit their participation. On this note, we look forward to having your undivided support!
Collection of Claims Data for Typhoons and Black Rainstorms
Extremeweather events can cause severe damage to property and infrastructure. To ascertain the actual loss due to these natural disasters, we have been collecting relevant insurance claims data of typhoons and black rainstorms over the past decade. In 2018, we began our collaboration with the Hong Kong Observatory (HKO) and expanded our scope of analysis. This year’s typhoon season has come, and we have started garnering data from the latest typhoon Talim. We greatly appreciate the continuous support of the General Insurance Members in providing such data which has proven to be valuable in helping us gain a more comprehensive understanding on Hong Kong's economic losses caused by typhoons and black rainstorms. This collaboration between the HKFI and HKO contributes to the collective efforts in managing and mitigating the impact of these weather events on the economy and society as a whole.
Incidentally, we have observed that there are some misunderstandings among the public and certain sectors regarding insurance coverage in the event of inclement weather conditions. To address these misconceptions and provide accurate information, we will strengthen education about the coverage provided by various insurance types during inclement weather.
Visit from Delegation of Central Bank of the United Arab Emirates
On26 July 2023, we received Dr Fatima Ahmed Ali Alhammadi, Director of Organisation Development of Human Resources Division in the Central Bank of the United Arab Emirates, and discussed a wide range of topics from talent development, business landscape to consumer education. We are pleased with their enthusiasm for Hong Kong, their appreciation of our public education efforts, and their desire to establish a closer working relationship with us. Going forward, we will keep up the momentum and identify future collaboration opportunities.
Webinar on Data Collection for EC / Motor Burning Cost Report 2022
Inorder to acquaint Member Companies with the above data request for 2022, S. Yu & Partners conducted the above briefings on 10 July 2023 through web conferencing. As the next step, Member Companies are encouraged to submit data for a more comprehensive market analysis. We look forward to your continued support to this annual data collection exercise.
EAIC 2024 Hong Kong Conference - Executive Board Meeting
Asian Insurance Congress (EAIC) 2024 will be held in Hong Kong in 24-27 September 2024. The EAIC Executive Board Members will come to Hong Kong to attend the Executive Board Meeting on 5-6 October 2023. EAIC sponsorship programme is now available. Take advantage of this platform to showcase your brand and contribute to the success of this prestigious event and increase your visibility, network with industry influencers, and make a positive impact for the future. Please contact sponsor@eaic2024.hk for details.
East
IFPCD ExCom Member List and What’s Next
Congratulations to the newly elected Executive Committee on Insurance Fraud Prevention Claims Database (IFPCD ExCom) Chairman Mr P L Chan, Deputy Chairman Mr Philip Kent and the Members. The membership for the new term 2023/2024 is as below:
Mr P L Chan (Chairman) China Taiping Insurance (HK) Co., Ltd.
Mr Philip Kent (Deputy Chairman) MSIG Insurance (Hong Kong) Limited
Mr Yuman Chan BUPA (Asia) Limited
Ms Eliza Cott Blue Cross (Asia-Pacific) Insurance Limited
Mr Elvis Fung AXA General Insurance Hong Kong Limited
Ms Susana Lee Prudential General Insurance Hong Kong Limited & Prudential Hong Kong Limited
Mr S K Li Sompo Insurance (Hong Kong) Co., Ltd.
Ms May Liu QBE Hongkong & Shanghai Insurance Limited
Mr Varun Madiyala HSBC Life (International) Limited
Ms Dorothy Ng Hong Leong Insurance (Asia) Ltd
Ms Linda Ng Dah Sing Insurance Company (1976) Limited
Mr Ted Wen BOC Group Insurance Co Ltd
Ms Kelly Wong AIG Insurance Hong Kong Limited
Ms Michelle Yuen Zurich Insurance Company Ltd
The IFPCD will continue striving for the best fraud detection solution for Members. If you are interested in joining IFPCD to fight against insurance fraud, please contact the Project Team at claimsdb@hkfi.org.hk
HKFI Annual Report 2022/23
Thelatest HKFI Annual Report has been published!
It provides an overview of what we have achieved in serving and supporting our Members over the past challenging 12 months. Scan the QR code or visit www.hkfi.org.hk/pdf/annualreport202223.pdf for the full version.
Summer Greetings
We will have a break in August and come back in September. Wishing you all a refreshing summer break!
Membership News
Change of Authorised Representative
General Insurance Member: Swiss Re Asia Pte, Ltd., Hong Kong Branch – Ms Daisy Ning Hiu Mei Life Insurance Member: China Life Insurance (Overseas) Company Limited – Ms Hu Qun
HKFI Membership
As at 31 Jul 2023, the HKFI has 81 General Insurance Members and 54 Life Insurance Members.