January 2011 Issue No. 175
Healthcare Reform
On 7 January 2011, we submitted an industry position paper to the Food and Health Bureau in response to its consultation document “My Health, My Choice”. In essence, we support Government’s initiative to address the long-term healthcare problem and look forward to the successful launching of a sustainable scheme which will benefit the community and meet the objectives as set out in the above document.
It is important to ascertain whether the suggested age-based risk premium ratings are broadly in line with those currently adopted in the market and commercially sustainable. On this, our Task Force on Healthcare Reform will consider engaging an independent actuarial consultant to conduct an in-depth study.
Self-regulatory Scheme for Person-to-Person (P2P) Marketing Calls
The Task Force on P2P Marketing Calls Self-Regulation Scheme has issued a Code of Practice on Person-to-Person Marketing Calls. The Code aims to provide guidance to Member Companies on making P2P telephone calls for outbound marketing activities. It will come into effect on 1April 2011. Members are advised in the interim to provide appropriate training for their front line staff and outsourced telemarketers to ensure that they have a clear understanding of the Code.
Report on Public Consultation on Review of the Personal Date (Privacy) Ordinance
We have forwarded comments on the above report to the Government. Our comments focused primarily on some technical aspects of direct relevant to the daily operation of Member Companies. We fully support the strengthening of personal data protection. And we believe that our priority should be on public education. While appropriate sanctions and penalties are essential, we think that more should be done to promote proper business conduct and best practices.
Green Power Hike HKFI Cup 2011
On 29 January 2011, 28 teams from the insurance industry joined the Green Power Hike and competed for the HKFI Cup. Congratulations to Manulife (International) Limited on winning both the 10 km race and the 25 km race and Convoy Financial Group winning the 50 km race. Our industry has raised a total of HK$280,000 for the charity event this time. Our special thanks go to the participating companies. Their generous support is deeply appreciated.
New Panel Members of the Insurance Agents Registration Board (IARB)
I am pleased to report that Mr Chan Wing Kai, Director of Social Services of the Hong Kong Council of the Church of Christ in China, and Mr Wilson Fung, Immediate Past President of the Hong Kong Institute of Certified Public Accountants, have kindly accepted our invitation to sit on IARB as panel members. I am confident that with their years of profound experience as IARB members, both will be able to help relieve the increasing workload of the IARB particularly in respect of oral hearings.
Appeals Tribunal
On behalf of the HKFI, I would like to thank Mr Kelvin Lee, solicitor, for kindly agreeing to join the Appeals Tribunal as member for a term of two years. The Appeals Tribunal now has greater capability to handle the increasing number of appeal cases related to disciplinary action taken by the IARB.
Competition Law
The Task Force on Competition Law organized a briefing for Member Companies on 24 January 2011. We invited Mr Huen Wong, President of the Law Society of Hong Kong, to give us an overview of the relevant bill from a legal perspective. The Task Force will prepare a formal submission and seek Members’ comments before presenting it to the Government.
General Insurance
Third Party Risks Insurance by Owners' Corporations
The Building Management (Third Party Risks Insurance) Regulation has come into force on 1 January 2011. We have been providing information and professional advice to owners' corporations on enquiries relating to the procurement of third party risks insurance. I am pleased to report that all enquiries to us have been satisfactorily addressed.
On 14 January 2011, General Insurance Council Chairman Mr Harry Wong, Accident Insurance Association Chairman Ms Ronnis Pun and HKFI Chief Executive Mr Peter Tam attended the meeting of Legco’s Panel on Home Affairs. We took the opportunity to highlight the work we have done to assist those owners’ corporations in need and explain the differences between a conventional public liability policy and the policy as required by law. We also affirmed our industry’s commitment to working with all stakeholders to ensure the smooth implementation of the new Regulation.
Life Insurance
New Councillor
The Life Insurance Council (LIC) has held a by-election to fill the casual vacancy arising from the resignation of Ms Luzia Hung. Ms Charity Au of BOC Group Life Assurance Company Limited is elected LIC Councillor. Let us extend a warm welcome to Ms Au.
Updated Requirements Relating to Sale of ILAS Products
In view of the Securities and Futures Commission's (SFC) introduction of Product Key Facts Statements (KFS) and Enhanced Disclosure Requirements for Investment Linked Assurance Scheme (ILAS) products, the LIC has issued the Updated Requirements relating to the Sale of ILAS Products (Cir Ref: Mv001/11 and Mv015/11).
Insurers are given a transitional period of 12 months until 25 June 2011 to comply with SFC’s new requirements. During this period, the SFC has adopted the streamlined procedures to facilitate the processing of applications for authorization of the Product KFS and revised offering documents in respect of the existing ILAS that continue to be marketed on or after 25 June 2011. The LIC has arranged a briefing on 18 February 2011 for the SFC to help familiarize Members with the streamlined procedures (Cir Ref: Mv014/11).
As for ILAS products procured under the Capital Investment Entrant Scheme (CIES), the revised Financial Needs Analysis requests prospective policyholder to indicate whether CIES is one of the purposes for taking out ILAS. Insurers are required specifically to conduct post-sale calls if the answer is affirmative.
Lunar New Year Greetings
May I wish you all a most Prosperous and Successful Year of the Rabbit! Kung Hei Fat Choi!
MEMBERSHIP NEWS
Change of Authorized Representative
Ms Debbie Sin, Clerical Medical Investment Group Limited
Mr Wilson Tang Chee Ping, Hang Seng Insurance Company Limited
Mr Wilbur Lo, Hannover Ruckversicherungs-AG
Mr Kenneth Cheung Chi Wan, The Pacific Insurance Company, Limited
Mr Lobo Law, QBE Hongkong & Shanghai Insurance Limited
Mr Roy Mark Halliday, Standard Life (Asia) Limited
Ms Cheryl Finney, Transamerica Life (Bermuda) Limited
Mr David John O’Brien, Transamerica Life Insurance Company
HKFI Membership
Allan Yu HKFI ChairmanAs at 1 February 2011, the HKFI has 87 General Insurance Members and 42 Life Insurance Members.
