September 2013
Issue No. 204
Independence of Insurance Authority (IIA)
We had a constructive meeting with the Financial Services and the Treasury Bureau (FSTB) in mid-August. We reaffirmed our stance and reiterated our concerns on the representation on the IIA Board and the Industry Advisory Committees; role of the CEO; conduct requirements; pecuniary penalties and appellate mechanism. The path ahead is not going to be easy. But we will continue to engage the Government to ensure those concerns are properly addressed.
A Working Group has been set up among the FSTB, Insurance Authority (IA) and the three self regulatory organisations to plan for the transitional arrangement. After the appointment of the members of the Working Group, the first meeting will be held in October. We will keep you posted on the progress.
25th Anniversary & Launch of the Revamped Website
The gala dinner celebrating the HKFI's silver jubilee was successfully held on 8 August 2013 with an attendance of over 380 guests and representatives of Member Companies. To commemorate the event we set up a time capsule for the Federation. Six people from the industry were invited to put into the time capsule a memorable item of their choice to signify the past, present and future of the HKFI. They include Legislative Councillor Mr K P Chan, Commissioner of Insurance Ms Annie Choi, Insurance Agents Registration Board Chairman Mr Ambrose Cheung, Insurance Claims Complaints Panel Chairman Mr Michael Tsui, HKFI Chief Executive Mr Peter Tam and I as Chairman of the HKFI. The time capsule will be installed at the HKFI Conference Room and retrieved and opened in 15 years' time, i.e. 8 August 2028.
Another important moment of that evening was the launch of the revamped HKFI website. To make it more lively and interesting, we presented the new website through a "breaking news report". The footage and photos taken during the night are now available at the brand new HKFI website at: www.hkfi.org.hk/#!/mediacorner/gallery. Do take a minute to relive those delightful moments. I would also like to take this opportunity to register my most earnest gratitude for your support of the HKFI in the past 25 years!
Policyholders Protection Fund (PPF)
I am pleased to report that the IA has agreed now to make changes to address some of the key issues raised by the Taskforce of PPF, such as excluding all off-shore risks with the exception of travel, goods in transit and accident and health insurance; excluding marine and aviation insurance while maintaining statutory third party liability insurance for merchant ship and goods in transit and credit insurance businesses for SMEs; restricting the period of continuity of cover to 90 days but with refund of unexpired portion of premiums; and excluding Hong Kong Mortgage Corporation and Export Credit Insurance Corporation from PPF.
While we are pleased to see the IA responding favourably to some of our suggestions, we remain deeply concerned about the length of the continuity of cover, the implication of 1% levy cap on life insurance business, the off-shore risks remained in the PPF, etc. In this connection, we are conducting a survey to ascertain the impact the proposed PPF will have on Members' business.
Media Campaign on ILAS
Seeing the need to present a more balanced view on ILAS and highlight the merits of this product, Life Insurance Council has recently launched a multimedia campaign. Through delivering clear and succinct messages on TV commercials, radio segments and advertorials, we hope to promote the
benefits of ILAS to the wider public - it is a simple and effective vehicle
for regular saving with a wide range of fund choices to suit customer’s risk appetite and it offers death benefit, cooling off period and enhanced consumer protection to consumers.
To reinforce our message and align all broadcast and print messages, we have developed a slogan and icon.
Strengthened Cooperation between HK and Guangdong
On 11 September 2013, we paid a courtesy visit to China Insurance Regulatory Commission (CIRC) Guangdong Bureau and held a meeting with its Director General Mr Fang Yongbin ( 房永斌 ). We had a good exchange of views on ways to promote the overall integrated development of the our markets.
Specifically, we signed a MOU together with Guangdong Insurance Association, Guangdong Insurance Intermediary Association and Macau Insurers' Association. It is the first MOU ever signed by the HKFI with our counter-parts in other markets and it sets a good framework for us to work more closely together in the future.
Cross-strait, HK & Macau Insurance Business Conference 2013
The above conference was successfully held in Chengdu on 22 and 23 September 2013. More than 140 practitioners from the greater China region participated in this annual programme and the exchange was very fruitful. We look forward to your continued support for the conference next year!
Financial Sector Assessment Program (FSAP)
The International Monetary Funds' FSAP Mission Team visited Hong Kong and the HKFI on 6 September. We provided them with detailed information about our self-regulatory regime, consumer protection mechanisms and interaction with the regulators, etc. The FSAP report on our industry should be available in the first half of 2014. We will keep you informed of developments.
Mission Well
At the Inauguration Swearing-In Ceremony held on 21 August 2013, 23 third and fourth formers aged between 14 and 16 formed the fourth batch of “Junior Financial Secretaries (JFS)” under the Mission Well Community Project. They will receive intensive and multi-faceted training to enhance their financial literacy and develop proper attitudes towards life. They will also take up the important role of promoting positive financial and life planning concepts among their peers and to the public in various ways.
I am delighted to advise that the Mission Well Community Project has been endorsed by the Education Bureau's School-Business Partnership Programme. This would help raise the profile of this signature community programme of HKFI and enable it to reach out to more schools and our target audience.
International Union of Marine Insurance (IUMI)
The IUMI annual conference was held in London in mid-September. More than 500 delegates from around the globe attended this important event with the theme of "Marine Insurance - Building resilience and defining a sustainable future". The Hong Kong delegates from the Marine Insurance Association will share the information they have learnt from the Conference in due course.
At the closing session of the conference, Hong Kong Chief Delegate Ms Vivian Ho received the IUMI flag from the host in London, signifying that Hong Kong would officially be hosting the conference next year.
MEMBERSHIP NEWS
Change of Company Name
Thomas Lee HKFI ChairmanCOFACE Hong Kong Branch has changed its name to COMPAGNIE FRANCAISE D’ASSURANCE POUR LE COMMERCE EXTERIEUR, BRANCH IN HONG KONG.
ING General Insurance Company Limited has changed its name to FWD General Insurance Company Limited.
ING Life Insurance Company (Bermuda) Limited has changed its name to FWD Life Insurance Company (Bermuda) Limited.
Sompo Japan Reinsurance Company Limited has changed its name to Sompo Japan Nipponkoa Reinsurance Company Limited.
XL Insurance Company Limited has changed its name to XL Insurance Company PLC.
Change of Authorized Representative
Assicurazioni General S.p.A. - Mr Furmen Chiu
China Life Insurance (Overseas) Company Limited - Mr Hui Yee Hung
FWD General Insurance Company Limited - Ms Sze Chow Wan
Sompo Japan Nipponkoa Reinsuance Company Limited - Mr Toru Nagase
Sun Life Hong Kong Limited - Mr Wim Hekstra
HKFI Membership
As at 30 September 2013, the HKFI has 86 General Insurance Members and 42 Life Insurance Members.
