February 2011 Issue No. 176
New Registration Portal for Insurance Agents
As a further step to enhance our services to insurance companies and insurance agents, we have developed a brand new registration portal which provides:
- complete online registration renewal services for existing registered persons;
- online PPS payment option for both existing and new registered persons; and
- user-friendly e-forms for new registered persons to facilitate the filling in of information related to agent registration.
The new registration portal is expected to be launched in March 2011. A briefing will be held on 18 March 2011 to introduce to insurance companies this new service in detail. A user guide will also be uploaded at this portal for ease of reference. Member Companies are encouraged to make use of this one-stop portal for all future registrations.
Mission Well Community Project
On 8 February 2011, HKFI Deputy Chairman Mr Alex Chu and I joined 19 Junior Financial Secretaries (JFS) selected by the Mission Well Community Project at a meeting with the Financial Secretary the Honourable John Tsang.
The JFS expressed their views on the 2011/2012 budget. They conveyed their concerns to the Financial Secretary and suggested solutions to address the problems related to the overheated property market, environmental protection and aging population. For details of the JFS’ submission in Chinese, please visit www.hkfi.org.hk/en_ media_20110208.htm.
Qualifications Framework (QF) for Insurance Sector
HKFI Deputy Chairman Mr Alex Chu, HKFI Chief Executive Mr Peter Tam and I have recently been appointed by the Education Bureau as members of the Insurance Industry Training Advisory Committee to advise on the establishment of a QF for the insurance sector and identify the training needs of the industry. We will continue to work closely with the QF Secretariat to ensure that the project is off to a good start.
General Insurance
Insurance Claims Arrangement under Travel Alert for Egypt
Following the Government’s raising the Outbound Travel Alert (OTA) for Egypt to black, we issued a media release on 1 February 2011 to explain how travel insurance policies would apply under such circumstances. We also reaffirmed insurance companies’ commitment to expedite the processing of valid claims.
The statement clarified that most travel insurance policies would indemnify travelers of the "irrecoverable deposits and charges paid" for cancelled or shortened tours provided that they were taken out before the OTA was issued. In this connection, affected travelers are advised to first check with their travel agencies or airlines, hotels and vendors to recover the amount paid. For any irrecoverable prepaid deposits/costs or additional transportation costs and accommodation expenses necessarily incurred thereafter, policyholders may seek reimbursement from the insurers concerned according to the actual terms and conditions of individual policies. The above message has been relayed to the Security Bureau and the Travel Industry Council. We will work closely with them and other stakeholders to ensure the interests of the insured policyholders and our industry in respect of OTA are duly protected.
Combat Fraudulent Motor Insurance Claims
In December 2010, we had a meeting with the transport industry to discuss their concerns about the level of insurance premiums for their vehicles’ compulsory third party liability cover. It was agreed to tackle fraudulent claims as it can help lower the level of premiums.
The issue was followed up and discussed at the joint meeting of the Legislative Council’s Panel on Financial Affairs and Panel on Transport held on 28 February 2011. GIC Chairman Mr Harry Wong attended the meeting and presented the industry’s views. In essence, we reiterated that the most effective way to lower the level of premiums is to reduce accidents and eliminate fraudulent claims, in particular those related to back pain and psychiatric impairment.
Furthermore, we support all relevant governmental departments working together to find ways to reduce traffic accidents especially those related to drink/drug driving, combat fraudulent claims and champerty and to secure the support of the Hospital Authority in tightening the control over the granting of prolonged sick leaves.
Life Insurance
Model Agency Agreement
It was reported in the press recently that some insurance agents had contractual disputes with their principals. This is a matter involving contractual relationship and any such disputes, therefore, should be resolved by reference to the contractual terms as agreed between the parties involved.
In any case, we have written to all Life Insurance Members bringing this to their attention so that the matter could be addressed accordingly.
We are in the final stage of developing a Chinese version of the Model Agency Agreement. It will be ready for consultation with Member Companies very soon.
