Independence of the Insurance Authority
As the Insurance Authority is set to become independent in 2013/2014, we need to get ourselves prepared, manage the process of change and ensure that the HKFI stays relevant and effective. At its last meeting held on 31 October, the GC decided to set up a Steering Committee to help chart the future course of the HKFI, oversee the transitional arrangement and ensure a smooth migration to the post IIA era. We will keep you posted on progress and consult you on any major proposed changes.
Disclosure of Intermediaries Remuneration
The Task Force led by Ms Agnes Choi has reviewed the disclosure of commission by insurance brokers in the context of the Prevention of Bribery Ordinance (PBO). The relevant legal advice from lawyer and counsel has been circulated to all Member Companies.
In essence, it is proposed that a broker should sign a declaration to the insurer to confirm that he has advised the customer that he will receive a commission if the customer takes up the insurance policy. Based on legal advice, we have prepared a proposed template of declaration for Members’ reference. For details, please refer to Circular Ref: Mv013/11.
Competition Bill
The Commerce and Economic Development Bureau has amended the above Bill to address the concerns of the business sector. The Task Force on Competition Law is reviewing the contents of the revised Bill.
Incidentally, we had a lunch meeting with Mr Andrew Wong, Permanent Secretary of Commerce and Economic Development, at which we had a good and frank exchange of views on this subject. It was agreed that a Members briefing will be arranged in due course.
Health Care Reform
To step up public education on medical insurance, we will launch a brand new publicity campaign through one of the most popular mobile advertising platforms. Medical insurance practitioners will be delivering practical medical insurance tips televised at 4,800 buses in the territory via RoadShow. Such TV segments will also be broadcast at the HKFI website.
To reinforce the effect, a high frequency educational programme on medical insurance tips will be run at Commercial Radio during the same period of time.
Privacy Campaign for the Insurance Industry
Partnering with the Office of the Privacy Commissioner for Personal Data, we launched a tailor-made programme for the insurance sector to promote best practices in personal data protection. A total of 37 seminars have been held for more than 2,000 insurance intermediaries since May 2010.
The campaign is a great success and as a next step, we are going to publish an information booklet entitled How Insurance Practitioners Can Protect Customers’ Personal Data to assist insurance practitioners to understand the application of the provisions of the Personal Data (Privacy) Ordinance in their daily work. Complimentary copies are provided to Member Companies on a first come first served basis. Please refer to Circular Ref: SL/sl/11-057 for details.
Election Committee Subsector Elections
The above election will be held on 11 December 2011. Nominations will be open from 8 to 15 November 2011. Nomination form is available for downloading at the Electoral Affairs Commission’s website at: www.eac.gov.hk/pdf/2011ecse/REO_ N_1(2011_ECSSE)(SF).pdf.
Suspected Fraudulent Claims
The Employees’ Compensation Task Force has recently met with the Hong Kong Construction Association (HKCA) to exchange views on the increasing trend of suspected fraudulent cases, prolonged sick leave and making double claims by the same injured worker at different construction sites, etc. We are pleased to learn that HKCA agreed to start collecting relevant data and explore with the Task Force on possible joint-operation to tackle such malpractice.
New LIC Councillor
I would like to welcome Mr Lennard Yong of ING Life Insurance Company (Bermuda) Limited to join the Life Insurance Council as Councillor. In the recent by-election, Mr Yong was elected to replace Mr Wim Hekstra, who has resigned from the LIC due to work relocation. On behalf of the LIC, I would like to thank Mr Hekstra for his past contribution.
Educational Leaflet on Anti-money Laundering (AML)
To help intermediaries to explain to clients as to the need for insurance companies to collect specific information for AML, the Professional Standards Working Group under the Life Insurance Council is currently compiling an information leaflet.
Visitors
We have received two groups of visitors from the greater China region during the month.
On 14 October 2011, representatives of the Taiwan Insurance Guaranty Fund visited the HKFI. They briefed us and officials from the Insurance Authority on the structure and modus operandi of the Fund. The experience they shared with us would be useful for our deliberation on the setting up of the Policyholders’ Protection Fund in Hong Kong.
We also received delegation of 18 from the Ningbo financial sector last week. In addition to updating them the latest market situation in Hong Kong, representatives of the Marine Insurance Association have presented them with an overall market overview of marine insurance in Hong Kong.
Presentation at ANZIIF
I represented the HKFI and delivered a talk entitled “The Hong Kong Insurance Market - an Overview & Major Trends” at the 6th Annual General and Life Insurance Conference of the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) on 28 October 2011.
East Asian Insurance Congress (EAIC) 2012
The Executive Board met last week in Kuala Lumpur and decided that the 26th EAIC be held between 29
October and 2 November 2012 at the Kuala Lumpur Convention Centre. The theme will be “Transforming the East Asian Insurers –Time for Action Now”.
MEMBERSHIP NEWS
Change of Authorized Representatives
First American Title Insurance Co - Ms Yvonne Ip
The Pacific Life Assurance Company Limited - Mr Sum Wai Kei
HKFI Membership
Alex Chu HKFI ChairmanAs at 1 November 2011, the HKFI has 87 General Insurance Members and 42 Life Insurance Members.
