This is my first Monthly Brief message to you, and I look forward to your continued support as we are stepping into another challenging year ahead.
New Registration Portal for Insurance Agents
I am pleased to announce that, as a further step to enhance our services to insurance companies and Registered Persons, we have launched the above e-platform today (https://registration.hkfi.org.hk/). From now on, Registered Persons may choose to complete their renewal of registration online and/ or settle the payment of registration fees for new, renewal and additional applications online via PPS (Circular Ref: RC9/8958). Member Companies are encouraged to make use of this environmental friendly portal for future renewal of registrations.
Proposed Establishment of a Policyholders’ Protection Fund (PPF)
On 17 May 2011, we organized a briefing for more than 40 Member Companies to hear first-hand updates from the Commissioner of Insurance Ms Annie Choi on the above subject. Questions and comments were raised by the floor on levy rate, fund management, etc.
The Task Force on PPF will meet with the Motor Insurers’ Bureau of Hong Kong and the Employees’ Compensation Insurers Insolvency Bureau to go over areas of common concerns.
Based on your feedback, we will submit our consolidated comments to the Government. Member Companies are also encouraged to make their own submissions before the deadline on 24 June 2011.
Proposed Establishment of a Financial Dispute Resolution Centre (FDRC)
We have reassessed our position taking into account the proposed independence of the Insurance Authority (IA). In the light of further discussion with the IA, it is concluded that a partially carved out proposal may be workable, i.e. the Insurance Claims Complaints Bureau (ICCB) will continue to resolve disputes relating to claims. Any complaints outside the ambit of the ICCB should go to the FDRC. This might involve the signing of a memorandum of understanding between the HKFI and the FDRC to spell out the delineation of respective roles and duties. As an alternative, we suggest the setting up of an ombudsman system to save the potential costs arising from arbitration and the envisaged lengthy process.
The Competition Law
The Task Force on Competition Law has gauged Members’ comments and reverted back to the Government on our stance on the subject. Generally speaking, we are supportive of the Competition Bill as another step towards developing Hong Kong’s regulatory and business environment to be world class.
Nonetheless, we have concerns about the detailed interpretation of the proposed regulations. These include some unclear definitions such as “substantial market power”, whether industry organization and exclusivity agreements between manufacturers and distributors are anticompetitive, the need to clarify and simplify the practical arrangements for consideration for exemption, etc. We also requested a 6 to 12 months transitional period for stakeholders to get themselves familiar with the law and prepared for its implementation.
May 2011 Issue No. 179
General Insurance
How to Help Develop Hong Kong into a Maritime Centre –from the Insurance Perspective
The Task Force on the above subject and the Marine Insurance Association have been busy working on the project and I am pleased to report that much progress has been made.
The Task Force has invited local universities and think tanks to submit proposals on the Consultancy Study on How to Position Hong Kong as a Maritime Centre for the Asia Pacific Region. The study will commence this summer with a view to publishing the results by early 2012.
On 3 May 2011, Task Force Chairperson Ms Agnes Choi joined the brainstorming session organized by the Hong Kong Maritime Industry Council on Hong Kong’s Position as an International Maritime Centre and there was a fruitful exchange of views among all stakeholders.
A one-day seminar entitled “Managing the Logistics Transportation Challenges in China & Hong Kong” will be held on 25 June 2011 at the Polytechnic University. Speakers will include experienced insurance practitioners and representatives from the field of logistics and transportation. We expect more than 200 insurance practitioners will join this first ever CPD course organized by the HKFI on marine insurance (Circular Ref: M-2979).
New Look of the Online Fire Survey Report
As our continuous endeavour to upgrade services for our Members, the Fire Insurance Association has enhanced the Fire Survey Report at the HKFI website. By employing the Google Map Technology, the old industrial buildings, godowns and target buildings are now shown on the map of Hong Kong. Users will find it easier to locate the buildings with interactive visual images. Together with the useful information including occupancy, maintenance condition, security, and the exposure of fire hazards, underwriters will have a better understanding of such buildings when assessing the risks.
Sharing at the Travel Industry Council of Hong Kong Members Forum
On 12 May 2011, HKFI Chief Executive Mr Peter Tam joined the above forum and explained the current selfregulatory regime of the insurance industry. Participants found the information and views shared by Mr Tam useful and constructive.
Life Insurance
Enhanced Regulation of Mandatory Provident Fund (MPF) Sales and Marketing Activities
The Financial Services and the Treasury Bureau invited us to comment on the above subject. In principle, the Life Insurance Council is generally supportive of the proposed regulatory enhancements but there is concern about the implementation and interpretation of the regulatory requirements by different Frontline Regulators.
Specifically we can see potential risk of fragmentation and duplication of intermediary oversight. We believe that the MPF Schemes Authority should be empowered centrally to deal with MPF-related misconduct cases
and apply, where appropriate, a standard set of disciplinary sanctions for the sake of consistency.
All in all, we believe that a right balance should be struck to ensure consumer rights are properly protected without compromising consumer choice by unnecessarily limiting distribution activity.
Alex Chu HKFI Chairman
As at 1 June 2011, the HKFI has 86 General Insurance Members and 42 Life Insurance Members.
HKFI Membership
MEMBERSHIP NEWS
