June 2012 Issue No. 191
Meeting the Media
On 6 June 2011, HKFI Deputy Chairman Mr Thomas Lee, General Insurance Council (GIC) Chairman Mr Jimmy Poon, Life Insurance Council Chairman Mr Roger Steel and I met with a group of journalists from the local paper media. We briefed them on the work and challenges of the HKFI and the latest market situation. The subsequent media coverage was generally very positive. We will continue to communicate with the mass media through various channels.
Independence of the Insurance Authority
We understand from the Office of the Commissioner of Insurance that a second round consultation with the industry on the key legislative provisions will take place this summer. Our latest discussion with the Commissioner of Insurance has indicated that the exercise is progressing well and the proposed legislative framework and related draft provisions should be ready by August/September this year. The industry will be given three months to study the draft and provide comments.
Health Care Reform
The Government has appointed PricewaterhouseCoopers (PWC) to carry out a consultancy study on the proposed Health Protection Scheme. We have written to the Food and Health Bureau (FHB) to express our concerns about the proposed time line, scope, methodology and guiding principles for this exercise. Also, our Task Force on Health Care Reform has suggested an early meeting with the FHB and PWC to revisit and brainstorm ideas on these issues.
Health care reform is a hugely complex exercise. As an industry we remain firmly committed to working closely with all stakeholders including the Government to promote voluntary medical insurance as one of the essential building blocks of health care reform.
Development of the Renminbi (RMB) Insurance Market
The RMB life insurance market has registered a remarkable growth in recent years. For 2011, new business premium totalled RMB 8.2 billion, representing a two-fold increase as compared with 2010. Recently four life insurers in Hong Kong have obtained approval on a pilot scheme basis to invest in the Mainland’s interbank bond market. We welcome the opening up
of more and better channels of investment for RMB life insurance products. On 15 June 2012, the Task Force on RMB Life Insurance Products held a briefing to update Members on the latest developments and the way forward.
Building Third Party Risks Insurance
Owners’ corporations (OCs) of two buildings in Kowloon claimed that they were unable to procure the above insurance. Thanks to the assistance of the Home Affairs Bureau, the Accident Insurance
Association conducted site inspection of these buildings and the results would been conveyed to the OCs concerned for appropriate follow up action. In order to obtain the required insurance cover, OCs are urged to remove any unauthorized building works and improve the maintenance of their buildings accordingly.
Mandatory Provident Fund (MPF) Schemes
With the passage of the MPF Schemes (Amendment) (No. 2) Bill 2011 on 21 June 2012, the statutory regulatory regime for MPF intermediaries and the Employee Choice Arrangement (ECA) will come into effect on 1 November 2012.
Under the ECA, employees can transfer once per calendar year the accrued benefits derived from their own mandatory contributions made during current employment to a trustee and scheme of their choice.
For the 2.3 million employees currently on the MPF Scheme, it is of vital importance that they know their rights under the ECA and are able to make informed decisions. In this connection, we plan to publish an informative booklet by autumn this year to educate the public on key points they should consider when making the relevant decisions.
Seminars and Briefings
To keep Members abreast of the most current and topical issues, the GIC organized a number of seminars/briefings during the month. They include two seminars held in conjunction with the Actuarial Society of Hong Kong on Regulatory Solvency Assessment in the US and General Insurance Market Update. Representative of Lloyds International Regulatory Affairs briefed us on various international sanctions and their implications for our industry at the Seminar on Sanctions. Two briefings were also held to bring members up to date on the Multidisciplinary Orthopaedics Rehabilitation Empowerment – MORE Program and Data Request Package for 2011 Survey of Prevailing Medical Fees by Private Service Providers.
Visitors
The Macau Insurers’ Association (MIA) visited us on 27 June 2012 to exchange views on the latest market development, explore ways to enhance communications between the two markets and discuss the organization of the Cross-strait, Hong Kong & Macau Insurance Business Conference 2012. We took the opportunity to present the MIA with a souvenir in celebration of its 25th anniversary this year.
On 22 June 2012, we spoke to over 20 delegates from the China Insurance Regulatory Commission on the self-regulatory regime of the HKFI and the Insurance Claims Complaints Bureau.
26th East Asian Insurance Congress (EAIC) 2012
The above conference will be held between 29 October and 2 November in Kuala Lumpur, Malaysia. The theme this year is “Transforming the East
Asian Insurer - Time for Action Now”. This conference will also mark the 50th Anniversary of the EAIC. Sign up for the conference now and celebrate the Golden Jubliee of EAIC! For online registration, please go to the EAIC 2012 website at: http://eaic2012kl.com/index.html. Early bird registration ends on 31 July 2012.
MEMBERSHIP
Change of Authorized Representative
Chartis Insurance Hong Kong Limited - Mr Marc Francois Alexandre Breuil
Membership
As at 29 June 2012, the HKFI has 88 General Insurance Members and 43 Life Insurance Members.
