2013 Extraordinary General Meeting (EGM) & Christmas Cocktail Party
The EGM will be held at 5:30 pm on Friday, 13 December 2013 in our conference room (please refer to Circular Ref: Mv115/13 for details). This will be followed by our traditional Christmas Cocktail Party. I look forward to seeing you all there.
Independence of Insurance Authority (IIA)
One of the outstanding issues of major concern is the role of CEO as Responsible Officer (RO) of insurance agents' business conduct. Whilst we understand the stance of the Insurance Authority (IA), we have serious reservation on the feasibility of the CEO taking up the dual role as RO. In this connection, we have submitted a formal proposal to the Commissioner on the possibility of following a similar set of procedures and criteria in appointing an actuary in a life insurance company, i.e. allowing each insurer appointing an executive officer as the RO whose responsibilities will focus on ensuring compliance of internal controls and procedures by its tied agents. Such officer must be a fit and proper person with relevant and sufficient experience and approved by the IIA.
Other issues relating to the transitional arrangement are currently being dealt with by the IIA Working Group set up by the FSTB. Latest progress is available at FSTB's webpage at: http://www.fstb.gov.hk/fsb/iia/.
Policyholders Protection Fund (PPF)
At the meeting with the IA and the Financial Services and the Treasury Bureau (FSTB) on 8 November 2013, we made some breakthroughs on a number of key areas. However, there remain some outstanding issues which will adversely affect the operation of our business and the interests of the policyholders, in particular on the proposed 1% levy cap for the life scheme and the continuity of cover for the general scheme. We will continue our constructive dialogue with the IA and the FSTB with the aim of finding a sensible and professionally sound solution.
Battle against Insurance Fraud
At the referral of the Task Force on Prevention of Insurance Fraud & Claims Database, the Commercial Crime Bureau (CCB) has successfully handled a case. The policyholder concerned was found guilty and jailed for two years for fraud related to the deliberate concealment of information when buying two life insurance policies for her baby. The ruling of the District Court has sent out a strong and clear message to the public that insurance fraud is a serious criminal offence. The reporting mechanism between the HKFI and the CCB in combating insurance fraud is working well. We hope to see closer collaborations with the law enforcement bodies to protect the legitimate interests of insurance companies and policyholders.
Population Policy
The Steering Committee chaired by the Chief Secretary for Administration released a consultation document on population policy and launched a public engagement exercise until 23 February 2014. A Task Force has been set up under the co-chairmanship of the GIC and LIC Chairmen. We will address those issues of direct relevance to our industry, i.e. develop a silver hair market, attract overseas and Mainland talents, improve injury management as part of the strategy to upgrade the supply of quality labour needed for the robust economic development of Hong Kong.
2014 Budget
On behalf of the HKFI, I met the Financial Secretary (FS) earlier this week and relayed to him the industry's concerns over the key industry initiatives for example, the health care reform. Also I took the opportunity to seek the FS' support in the areas of strengthening co-operation between Hong Kong & Mainland on areas like fraud prevention, promoting Hong Kong as the international maritime centre, etc.
International Union of Marine Insurance (IUMI) Conference 2014
The IUMI Conference, to be held at the InterContinental Hotel, Tsimshatsui from 21 to 24 September 2014, will be the event of the year. And we have just received some most encouraging news - the Hon CY Leung, HKSAR Chief Executive, has accepted our invitation to be the guest of honor and will address the Opening Ceremony on Monday, 22 September 2014.
The official website www.iumi2014hk.com has been launched providing more conference details. You will find an exciting sponsorship programme with different exposures and entitlements. We look forward to your staunch support in making this signature event a resounding success! If you have any questions regarding the sponsorship programme or the conference, please contact the secretariat at enquiry@iumi2014hk.com.
Task Force on Greater China Affairs
Subsequent to the signing of a MOU with our counterparts in the Pearl River Delta, we have entered a new mode of cooperation with our business partners in the Mainland. Following the Cross-strait, HK & Macau Insurance Business Conference held in September 2013, we are also expecting to expand our scope of exchange with Insurance Association of China, Taiwan Insurance Society and Macau Insurers' Association. Recognising the need to step up cooperation in the region, the Task Force on CEPA has been renamed as Task Force on Greater China Affairs to take up tasks with wider spectrum. And the Task Force will continue to be chaired by Mr Jimmy Poon.
Mission Well
16 teams of secondary school students joined the "Journey of Life of Risks and Adventures" Competition and three finalists competed for the championship on 23 November 2013. Participating students are required to make smart choices on life planning and risk management in every stage of their life journey.
Congratulations to the winning teams and we believe that these youngsters will be able to help spread the message of prudent life planning among their peers.
Thomas Lee HKFI Chairman
MEMBERSHIP NEWS
Change of Authorized Representative
FWD General Insurance Company Limited - Mr Wai Chi Hung
FWD Life Insurance Company (Bermuda) Limited - Mr David Wong
Zurich Assurance Ltd - Ms Paula Choi
Zurich Life Insurance Company Limited - Ms Paula Choi
HKFI Membership
As at 2 December 2013, the HKFI has 86 General Insurance Members and 42 Life Insurance Members.