Independence of Insurance Authority (IIA)
In our submission to the Panel of Financial Affairs of the Legislative Council (Legco) on 5 July 2013, we highlighted the outstanding issues to be resolved: representation on the IIA Board and the Industry Advisory Committees; role of the CEO; conduct requirements; pecuniary penalties and appellate mechanism.
As the Financial Services and the Treasury Bureau (FSTB) is planning to present the bill to Legco by Nov 2013, we wrote to Prof K C Chan, Secretary of Financial Services and the Treasury, to reiterate our readiness to work with the Government to resolve these issues and help gather the industry's support before the legislation is introduced.
Regarding industry's representation on the future IIA Board, we can draw reference to the set-up of the proposed Travel Industry Authority Board. The Government has recommended that 8 out of 22, i.e. 36% of the board will come from the trade. And of these eight trade members, 3 will be nominated by the Travel Industry Council, the current self-regulatory body for travel agents.
Seen in this light, there is a valid and solid case for the Government to increase our industry's representation on the future IIA Board to no less than 25% as suggested by HKFI.
Policyholders Protection Fund (PPF)
Equally important is the proposed establishment of a PPF. The briefing held on 11 July 2013 attracted about 90 representatives from 48 Member Companies. After understanding the potential risks associated with off-shore risks, cap on levies, SMEs and the provision of continuity of cover, participants raised a series of pertinent questions.
The proposed PPF is intended to be launched by 2015. As such, members are urged to seize this window of opportunity to voice out their views and concerns to the FSTB and the IA accordingly. Meanwhile, we will also provide another written submission to the Administration.
Health Protection Scheme (HPS)
At the Legco's subcommittee meeting held on 8 July 2013, the Food and Health Bureau (FHB) presented some new ideas on the proposed HPS. Unfortunately, we were not given the opportunity to review or validate the figures provided by the FHB before they were submitted to the Legco.
In our last letter to the FHB, we stated clearly that the fundamental operating principles of the HPS must be properly addressed before dealing with the technicalities.
The Evolution of Qianhai: How Can Hong Kong Benefit
I addressed the above seminar organized by SCMP on 19 July 2013. Speaking as the Chairman of HKFI, I shared with the audience the advantages and potential of developing a captive insurance centre in Qianhai and how Hong Kong insurers can contribute to and benefit from this development.
HKFI Annual Report 2012/2013
The latest HKFI Annual Report was published in mid-July. Illustrated with a collection of pictures, it provides an interesting and comprehensive overview of the work accomplished by the HKFI in the past 12 months. An e-version is available online at: www.hkfi.org.hk/annualreport/.
The above campaign held in collaboration with RoadShow was a resounding success.
On 6 July 2013, more than 1,000 energetic participants from over 200 families took part in the charitable athletic game held at the Wanchai Sports Ground. Their enthusiasm was not dampened by the heat and occasional showers. Relive the fun and highlights of this event at www. roadshow.hk/hkfisd/?highlight.
All proceeds without deducting operation expenditures were donated to a charitable NGO "Treats" to help underprivileged children. To embody the spirit of sharing, we joined a cookery session on 27 July 2013 and had a marvellous time together with the kids and volunteers from Treats.
Cross-strait, HK & Macau Insurance Business Conference 2013
The above conference will be hosted by the Insurance Association of China at Jiuzhaigou Valley, Sichuan (四川九 寨溝) on 22 and 23 September 2013. Members will be invited to subscribe for the conference in due course. Meanwhile please pencil in the dates and we look forward to your participation and support!
Mission Well Community Project
25 third and fourth formers aged between 14 and 16 have been selected as the fourth batch of “Junior Financial Secretaries" (JFS) and started a series of intensive training. In addition to visiting us and familiarising themselves with the work of the HKFI and the insurance industry, they have also met the Hon Alan Leong and the Hon Emily Lau and Dr Law Chi Kwong to learn more about Hong Kong's housing policy, function of the Legco's Finance Committee and the work of the Community Care Fund.
Summer Greetings
In view of the summer holiday, the next issue of the Monthly Brief will be published in September 2013. Wishing you all a relaxing and refreshing summer break!
MEMBERSHIP NEWS
Change of Company Name
Hannover Rückversicherung AG has changed its name to Hannover Rück SE.
Change of Authorized Representative
Thomas Lee HKFI Chairman
United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd - Mr Andrew Jones
HKFI Membership
As at 31 July 2013, the HKFI has 86 General Insurance Members and 42 Life Insurance Members.
"Kids Day Out for Fun and Charity"