September 2011
Issue No. 182
New Member
On behalf of the HKFI, I extend our warmest welcome to Partner Reinsurance Europe Limited for joining us as a General Insurance Member.
Health Care Reform
Mr David Alexander, Chairman of the HKFI’s Task Force on Health Care Reform, attended a special meeting of the Legislative Council’s Panel on Health Services on 8 August 2011 to reaffirm our support in principle for the proposed scheme. Going forward, we will step up our work on standardizing policy terms/wordings and promoting public education on medical insurance.
On consumer education, our latest initiative is to publish a weekly column on medical insurance in the Economic Digest （《經濟一 週》） , one of the most reputable financial magazines in Hong Kong. Each week, we focus on one aspect of medical insurance and provide readers with in-depth information by way of real case studies, Q&A, etc.
Proposed Independence of the Insurance Authority (IIA)
The Government has yet to announce details of the implementation of the above proposal. On receipt of the details, we will consult Member Companies on the way forward.
Personal Data Privacy
The Task Force on Review of Personal Data Privacy Ordinance has been in close liaison with the Office of Privacy Commissioner for Personal Data (PCPD) on two important issues. The first involves the draft Guidance Note on the Proper Handling of Customers’ Personal Data for the Insurance Industry (GN). While we fully support the exercise, we expressed concern to the PCPD Office that the GN seemed to add more restrictions over and above what is set out in the Six Data Protection Principles. We submitted our consolidated comments and requested clarification/guidelines for compliance purposes.
Another subject of grave concern is the introduction of Data User Return Scheme (DURS). Two briefings were conducted for the Task Force and Member Companies. In principle, we support DURS if it is reasonably implemented with no adverse impact on normal commercial activities. However, we
have reservations about its effectiveness in strengthening personal data protection. We also foresee technical difficulties in complying with the requirements such as the onerous administrative workload involved in regularly updating the database. The Task Force is more than ready to discuss with the PCPD Office on our views.
New Insurance Mediation Pilot Scheme (NIMPS)
We launched the NIMPS in 2006 to promote the use of mediation in resolving employees’ compensation claims disputes. Having successfully resolved 9 disputes through mediation and 25 by direct negotiation, NIMPS has served its purpose of showing the benefits of mediation and how it should work in the context of Hong Kong. We have decided to bring this pilot scheme to a close and leave it to the market to develop a commercially viable and sustainable model, thus allowing mediation to take root in Hong Kong for the benefits of all, in particular the injured workers.
A ceremony will be held on 3 November 2011 to wrap up the Scheme. The Honourable Matthew Cheung, Secretary for Labour and Welfare, has kindly accepted our invitation to be the principal guest of honour. Also present will be His Honour Judge Barnabas Fung and representatives of mediation bodies and labour unions. Representatives of injured workers, mediators, insurance companies participated in the Scheme will share their personal experience in the use of mediation.
Development of RMB Business in Hong Kong
Since the signing of the revised Settlement Agreement on the Clearing of Renminbi (RMB) Businesses in Hong Kong in July 2010, the life insurance industry has come up with an array of RMB products and played a constructive role in contributing to the long-term establishment of an offshore, one-stop RMB hub in Hong Kong.
Currently, there are around 10 companies issuing RMB life insurance products. They provide better access for Hong Kong customers to a broader range of insurance products to meet their needs. RMB new business premium accounted for around 7% of the new business premium, or around HK$4 billion, in 2010.
However, the lack of investment vehicles in RMB for local insurers is hindering the growth of this type of insurance business. Hence we have kept in close touch with the Financial Services and the Treasury Bureau, the Insurance Authority and the Hong Kong Monetary Authority to explore ways to allow access by Hong Kong life insurers to the Mainland inter-bank bond market or any other potential investment channels.
Cross-strait, Hong Kong & Macau Insurance Business Conference 2011
The above conference is one of the highlights in the HKFI calendar. This year, the conference will be held in Taipei between 15 and 16 November 2011. Interested Members are reminded to sign up for this annual event (Circular Ref: AC/SL/sl/11-043).
International Conferences
Two important international conferences were held this month. The 25th Pacific Insurance Conference (PIC) held in Singapore was a resounding success. More than 300 CEOs, senior executives and prominent speakers from the life insurance sector joined this biennial event, among which 62 were from Hong Kong. The next PIC will be held in Hong Kong between 27 and 30 October 2013.
Another significant event held during the month was the International Union of Marine Insurance (IUMI) 2011 Conference. About 700 delegates from 37 countries including five from Hong Kong attended this signature annual event of the marine insurance industry in Paris last week. Ms Joanne Chan and Mr Raymond Ng of the Marine Insurance Association spoke at two presentation sessions of the conference. Hong Kong will play host to this international conference in 2014.
HKFI Public Relations Digest
We issued the first ever PR Digest in August to recap the timely and effective communication work the HKFI has done in the recent years to promote insurance and build consumer confidence in the products and services provided by Member Companies. The summary also highlighted some major projects we undertook and the samples of public education programmes we have initiated (Circular Ref: PT/SL/sl/011-042). We will continue our efforts to deliver better results.
Qualifications Framework (QF) in Insurance Industry
The Education Bureau (EDB) established an Insurance Industry Training Advisory Committee to facilitate the implementation of QF in the industry. A team of professional writers has been engaged in developing the competency standards in general insurance and life insurance. It is expected that the competency standards will be completed by end 2012.
The EDB has also launched the QF Support Schemes, providing various forms of subsidies to stakeholders, such as accreditation grants to companies and training providers to encourage them in seeking accreditation of their programmes and becoming QF-recognized qualifications. For more details, please visit www.hkqf.gov.hk.
Visitors
We have received visitors from close and afar during the past two months.
In early August, a group of 40 law students from different universities in the Mainland and Hong Kong visited our office under an exchange programme arranged by the Legal Education Trust Fund. They were here to learn more about the alternate dispute resolution mechanisms currently adopted by the insurance industry.
On 2 August, I spoke to a group of senior managers from Taikang Life Insurance and exchanged views with them on various issues relating to the development of life insurance market and distribution channels.
Mr Robert Whelan, CEO of the Insurance Council of Australia, paid us a visit last week. We exchanged views on our insurance markets and explored further opportunities to strengthen our working relations.
MEMBERSHIP NEWS
Change of Company Name
Alex Chu HKFI ChairmanThe Ming An Insurance Company (China) Limited Hong Kong Branch has changed its name to Minan Property And Casualty Insurance Company Limited, Hong Kong Branch.
Change of Authorized Representatives
ING Life Insurance Co. (Bermuda) Limited - Mr Lennard Yong Minan Property And Casualty Insurance Company Limited, Hong Kong Branch - Ms Chen Min
New Authorized Representative
Partner Reinsurance Europe Limited - Mr Philip Nye
HKFI Membership
As at 30 September 2011, the HKFI has 87 General Insurance Members and 42 Life Insurance Members.
