May 2013
Issue No. 201
This is my first message to you as HKFI Chairman. Thank you for your continued support and I look forward to working more closely with you in the coming year to address a fairly large number of challenging industry issues.
Four key areas contained in Government’s proposal are of major concerns to the industry - the continuity of coverage for non-life policies until expiry upon an insurer’s insolvency, the provision of cover to SMEs, no cap in the levy and off-shore risks. In light of experience in other markets and based on legal advice, we will make a submission to the Administration to formally express our views with a view to finding sensible solutions. You will be kept informed of developments.
Policyholders' Protection Fund (PPF) Health Care Reform
The Task Force on Health Care Reform has been playing an active role in assisting the Food and Health Bureau and its consultant PricewaterhouseCoopers to come up with a viable Health Protection Scheme (HPS) designed to offer a better choice for consumers. A briefing was held on 30 May 2013 to update Members on the latest progress.
In principle, we support the introduction of the HPS alongside with our existing products to uphold freedom of choice for consumers. Among other things, we have stressed the importance of greater transparency on fees charged by medical providers and securing firm commitment of the
Government to finance the high risk pool to ensure its long-term sustainability.
We issued a media release and held a press briefing in the past week to
elaborate the industry's stance and our concerns over the proposed way forward for the HPS.
Marine Insurance
The Study on "How to Position Hong Kong as a Maritime Centre for the Asia-Pacific Region" (www.hkfi.org.hk/ en_media_20130429.html) has received some very favourable responses from the stakeholders including the Subgroup on Maritime under the Economic Development Commission. We are particularly encouraged to note that the Secretary for Transport and Housing has found the report findings and recommendations of value to the Maritime Industry Council. Going forward, the HKFI will step up efforts to work in closer partnership with these bodies to help develop and promote Hong Kong as an International Maritime Centre.
On this we have had a very constructive luncheon discussion with the Honourable Cheung Chi Kong, Member of the Executive Council and Executive Director of the One Country Two Systems Research Institute, as well as academia from the City University of Hong Kong.
Our other endeavor, as you know, is to host the most
prestigious marine insurance international event - the International Union of Marine Insurance (IUMI) Annual Conference - in Hong Kong in September 2014. Coincidentally, the IUMI Secretary-General Mr Lars Lange was in town last week. I am pleased to say that he is impressed by the meticulous preparatory work the HKFI has done so far and the enthusiastic support from local marine insurers.
Enhanced Customer Protection on ILAS
We have received enquiries from Member Companies and intermediaries concerning the implementation of the above initiative. So the LIC has prepared, with input from the Insurance Authority (IA), a set of FAQ for Members' reference.
To ensure the objectives of strengthening customer protection mechanisms are understood by the frontline sales persons, the LIC together with the IA have conducted two rounds of forums with a very good turn-out.
Multidisciplinary Orthopaedics Rehabilitation Empowerment (MORE) Programme
I am delighted to report that the MORE Programme, sponsored by the General Insurance Council, has achieved the target of 100 successful cases. Some of the injured workers have been able to resume modified duties after a few weeks of treatment. The results are indeed very encouraging. Dr Sheung-wai Law in charge of the programme will share detailed analysis of the 100 cases in a briefing to be held on 10 June 2013 (Circular Ref: Mv053/13).
HKFI 25th Anniversary Gala Dinner
To celebrate the silver jubilee of the HKFI, we are going to hold a gala dinner on 8 August 2013 at Conrad Hong Kong. The Honourable John Tsang, GBM, JP, Financial Secretary, will officiate at this memorable occasion. We have also lined up commemorative programmes and activities during the dinner. Member Companies are invited to support this event and subscribe for tables (Circular Ref: TL/SL/sl-13-027).
To mark this vital milestone in the history of the HKFI, we are now revamping the HKFI official website and plan to launch it in August 2013.
"Kids Day Out for Fun and Charity"
Another major event to celebrate the 25th anniversary of the HKFI is the above game day jointly organized with RoadShow, one of the most popular out-of-home advertising platforms. On 6 July 2013, we will hold an athletic game for children aged under 10 and their families at the Wanchai Sports Ground. All proceeds without deducting operation expenditures will be donated to
charitable NGO "Treats" to help under-privileged children. Enrolment is now under way online at: http://www. roadshow.hk/hkfisd/ and via RoadShow on public buses. Join us at this meaningful fun day out and show your support for the needy!
Taking the opportunity, some of us will also appear on the RoadShow and provide smart tips for taking out various types of insurance.
Industry Conferences
On 28 May 2013, I addressed the 7th Asian Insurance CFO Summit organised by the Asia Insurance Review and shared with participants an overview of the current market and some regulatory issues affecting the role and function of CFOs.
Coincidentally, Mr Allan Yu, Chairman of the Task Force on the Independence of the Insurance Authority, spoke at the Actuarial Society of Hong Kong's Risk Management Regional Conference held on 7 May 2013 in Macau.
MEMBERSHIP NEWS
Change of Company Name
Thomas Lee HKFI ChairmanAmerican International Assurance Company (Bermuda) Limited has changed its name to AIA International Limited.
Change of Authorized Representative
QBE General Insurance (Hong Kong) Limited - Mr Lee Pak Kee
HKFI Membership
As at 3 June 2013, the HKFI has 86 General Insurance Members and 42 Life Insurance Members.