Issue No. 212
HKFI Chairman’s Message – May 2015
I am writing to you for the first time as HKFI Chairman. Thank you for rendering your continued support in the past years. I look forward to working more closely with you in the future to address a variety of challenging industry issues.
New Member
On behalf of the Governing Committee, I would like to extend a warm welcome to Euler Hermes Europe as our General Insurance Member.
Establishment of the Independent Insurance Authority (IIA)
As you are probably aware, the Bills Committee on the Insurance Companies (Amendment) Bill 2014 had the first meeting on 27 May 2014. Lawmakers showed keen interests in this subject and raised a range of questions/concerns on the representation of the Governing Board, the absence of a disciplinary committee, the pecuniary penalty for misconduct, the rights and interests of insurance agents, etc. Thanks to the Hon K P Chan, the industry's key concerns were forcefully articulated, thus setting a proper context for upcoming deliberations at the Bills Committee. Given the importance and complexity of the subject and its far-reaching impact on our industry and the insuring public, we have commissioned Reed Smith Richards Butler to conduct a clause by clause legal review of the Bill.
At the same time, in conjunction with the Hong Kong Insurance Law Association (HILA), we organised a forum on 13 May 2014 to study the Bill from five angles - conduct requirements, checks and balances, penalties and appeals, industry involvements and other issues. Close to 90 legal professionals, industry practitioners and representatives of industry bodies participated and we had vigorous and in-depth discussions.
The synopsis of the discussion outcome will be cleared by the Task Force on IIA before we present it to the Bills Committee. On this, we are now working closely with the Hon Chan and will provide him all the necessary support to ensure the industry's concerns are duly heard and understood by the lawmakers.
Vision 2028
With the introduction of the above Bill and the envisaged establishment of the IIA in 2015, the HKFI is about to enter a new era. To ensure the Federation stays relevant and effective, advances the legitimate interests of the industry, helps contribute to the socio-economic growth of Hong Kong and meets the expectation of our Member Companies and stakeholders, we are formulating a long term blue print to provide a clear focus for our work going forward. In celebrating our 25th anniversary last August, we installed a time capsule scheduled to be opened up in 15 years' time, i.e. 2028. Accordingly, we are going to launch "Vision 2028" with a view to charting a new pathway for the HKFI in the years ahead. Meanwhile, the most important task of the HKFI and our secretariat remains to be working closely with the Government and all stakeholders to ensure a seamless transition to the IIA regime.
Hong Kong Insurance Awards 2014
I am delighted to announce the HKFI and Metro Finance (FM. 104) are jointly launching the Hong Kong Insurance Awards 2014.
The first of its kind for the local insurance market, the Hong Kong Insurance Awards aims to raise professional standards across the industry, acknowledge top notched performance and innovation and commend outstanding accomplishment in education and social responsibility. Through the adjudication of the expert panel of judges drawn from the industry, academia, marketing, IT and social welfare, insurance companies/teams and individual practitioners will be duly selected for 16 categories of awards. A prize presentation cum gala dinner will be held in October 2014. More details will be available in the coming weeks. Don't miss the chance to compete for excellence!
Guidance Note on Underwriting Class C Business (GN)
The Life Insurance Council is committed to strengthening protection for customers of Investment-linked assurance schemes (ILAS).
With this in mind and the fact that treating customer fairly is a global trend and consistent with the goal of our industry, the LIC supports the relevant GN proposed by the Insurance Authority (IA). A briefing was held on 20 May 2014 to ascertain Members' views on the way forward.
To ensure the GN is enforceable with clarity and well-defined specifications, the LIC is now working closely with the IA on its contents.
Arbitration - Reinsurance/Insurance-Alternative Disputes Resolution
On 19 May, more than 60 representatives from 42 HKFI member companies and HILA attended the induction course on the above subject. We are pleased to note the keen interest shown by participants.
Riding on this, we are organising the second part of the event in partnership with the HILA and the Hong Kong International Arbitration Centre.
On 11 June 2014, a panel discussion will be held to brainstorm the need for a specialist insurance and reinsurance mediation and arbitration service in Hong Kong, the sort of arbitration rules we need, etc.
Renowned academia Professor Rob Merkin will chair the panel discussion with representatives from the HKFI, Department of Justice, Financial Dispute Resolution Centre, insurance companies and legal profession. Don't miss this rare opportunity of learning more about arbitration and helping to shape the future of insurance arbitration in Hong Kong (Circular Ref: Mv060/14)
Visitor from International Association of Insurance Supervisors (IAIS)
The Governing Committee received IAIS Deputy Secretary-General Ms Catherine Lezon yesterday and discussed a wide range of issues relating to the work and role of the IAIS, changes in the Hong Kong's regulatory landscape, how we at the HKFI could contribute to the work of the IAIS, etc.
Jimmy Poon HKFI Chairman
MEMBERSHIP NEWS
New Authorized Representative
Change of Authorized Representative
Lloyd’s – Mr. Dylan Bryant
Manulife (International) Limited - Mr. Nigel Ke
Standard Life (Asia) Limited - Mr. Neal Armstrong
HKFI Membership
As at 29 May 2014, the HKFI has 87 General Insurance Members and 43 Life Insurance Members.
Euler Hermes Europe - Mr. Fabrice Desnos