New Members
On behalf of the Governing Committee, I would like to welcome Gan Eurocourtage as General Insurance Member and SCOR Reinsurance Co (Asia) Ltd as Life Insurance Member of the HKFI.
HKFI Annual Reception 2012
The HKFI Annual Reception will be held on Monday, 26 March 2012 at 6:00 pm at the Garden Lounge of the Hong Kong Club. Professor the Honourable K C Chan, SBS, JP, Secretary for Financial Services and the Treasury, will be our principal Guest-of-Honour. We look forward to seeing you that evening.
2012 Chief Executive Election Forum for the Insurance Sector
The above forum held on 21 February 2012 was well attended with about 80 participants from Member Companies, intermediary bodies and the Insurance Subsector of Election Committee. The three candidates Mr Henry Tang, Mr Albert Ho and Mr C Y Leung in turn presented their election platforms and answered questions from the floor. Some issues of particular concern to the industry were raised. They included the problem of ageing population and universal retirement protection scheme, health care reform, and how to facilitate Hong Kong’s development into a regional insurance and reinsurance hub, etc.
The 2012 Chief Executive Election will take place on 25 March 2012.
Proposed Establishment of a Policyholders’ Protection Fund (PPF)
The Financial Services and the Treasury Bureau (FSTB) has released the Consultation Conclusions and Final Proposals on PPF. While we agree with the way forward on most areas, we have serious reservations on the proposal for the non-life scheme to provide for continuity of coverage until natural expiry of the
affected policies in an insurer under provisional liquidation or in liquidation. Also, we would like to see selective inclusion of the small and medium enterprises in certain classes under the proposed scheme. As these proposals will have tremendous and long-term impact on the operation and levy of the fund, we are now seeking legal advice and will present our arguments and recommendations to the Administration once again in consultation with the General Insurance Council.
Proposed Independence of the Insurance Authority
The Task Force on the above subject has submitted the consolidated comments on the consultation conclusions to the FSTB. And we will be meeting the Insurance Authority (IA) some time in March to find out where things stand and the way forward. We will keep Members apprised of progress.
Definition of “Hospital” in Medical Insurance Policies
To help the insuring public better understand the definition of "hospital" in a medical insurance plan, the Medical Insurance Association has come up with a detailed description entitled "Know more about Hospital", complemented by a list of local hospitals that meet the definition of "Hospital" commonly adopted in medical insurance contracts (www.hkfi.org.hk/en_med_HospitalDefinition.html#Hospital).
Also, Member Companies are urged to explain to the claimants concerned why their claims are turned down rather than solely citing the definition of "Hospital".
Battle against Insurance Fraud Related to Traffic Accidents Claims
On 8 February 2012, the Commercial Crime Bureau (CCB) of the Hong Kong Police Force conducted a briefing for our Members on how to report suspected fraudulent claims related to traffic accident. Starting 1 February 2012, such cases should be reported to the HKFI first on a standard form, i.e. Motor Related Suspicious Claims form. The Task Force on Insurance Scam will then scrutinize the documentary evidence provided and, where necessary, invite Members concerned for detailed discussion of the case. The case will be referred to the CCB for investigation if there is prima facie evidence of crime being committed (Circular Ref: Mv016/12).
Sanction Rules Enacted by US, EU and UN
The Reinsurers’ Forum organized a briefing on 2 February 2012 and invited a legal expert to explain to over 80 Members’ representatives the background, compliance and implementation of the sanction rules. In view of the fact that there are marked differences in various sanctions rules imposed by each jurisdiction, we are now seeking the IA’s recommendation on how to reconcile these discrepancies. The IA is also requested to advise insurers on how to tackle the statutory requirement in satisfying claims for compulsory classes like employees’ compensation and motor insurance.
Mandatory Provident Fund Schemes (MPF)
The Hong Kong Trustees’ Association, Hong Kong Investment Funds Association and the HKFI have set up a Cross Industry Group (CIG) to promote the MPF system which seeks to protect the well-being of the Hong Kong population upon retirement. The CIG has appointed a professional consultant to conduct a research on fee structure and fund performance in other countries. The findings are expected to be available in the second quarter of 2012.
MEMBERSHIP NEWS
Change of Authorized Representatives
Malayan International Insurance Corporation Limited - Mr Patrick Joseph G Santos
New Authorized Representatives
Gan Eurocourtage - Mr Tse Sang San SCOR Reinsurance Co (Asia) Limited - Mr George Leung
HKFI Membership
Alex ChuAs at 1 March 2012, the HKFI has 88 General Insurance Members and 43 Life Insurance Members.
HKFI Chairman The Toa Reinsurance Company Limited - Mr Chow Ka YinI would like to express our heartfelt appreciation to the CCB for this initiative and their ready assistance to combat traffic accident related insurance fraud.