September 2014 Issue No. 214
Risk-based Capital (RBC) Framework for Hong Kong
The Insurance Authority has just released the Consultation Paper on a RBC Framework for the Insurance Industry of Hong Kong. The Governing Committee has already set up a Task Force led by Mr David Alexander to work on this important subject. Two subgroups are also set up under the General Insurance Council (GIC) and Life Insurance Council (LIC) to address their different concerns on RBC. They will review the consultation document and co-ordinate an industry response based on the feedback from member companies. At our invitation the Commissioner of Insurance has kindly agreed to attend three briefings in October/ November, two for General Insurance Members and one for Life Insurance Members. Details will be announced soon.
Health Protection Scheme (HPS)
At the relevant Legislative Council's Subcommittee meeting held on 12 September 2014, the Hon K P Chan reflected the grave concerns of the industry over the proposed HPS. Specifically we requested the Administration to adopt the latest compensation ratio of 69% to reflect more accurately the usage and function of medical insurance. We also queried on the viability of the basic standard premium rate at $3,600 bearing in mind an average of the 10% medical inflation in the past few years. In this connection, we suggested the Government to engage an independent actuarial consultant to validate the HPS model and relevant projection figures.
Hong Kong Insurance Awards
We are organising this for the first time and the response from Member Companies and industry practitioners has been most encouraging. Over 70 entries of remarkably high quality were received competing for 12 categories of awards. Thanks to the tireless efforts of the honourable judges, all winners were duly selected. A prize presentation cum gala dinner will be held on 9 October 2014 at the Harbour Grand. In addition to acknowledging the achievement of the winners and share their joy, there will also be an interactive panel discussion to be moderated by High Court Judge the Honourable Mohan Bharwaney. Panelists including President of the Hong Kong Institute of Certified Public Accountants Mr Clement Chan, Executive Director & Chairman of Hong Kong Professional and Educational Services Mr Ricky Szeto and IARB Chairman Mr Ambrose Cheung will look at insurance from a non-insurance angle (www.metroradio.com.hk/Campaign/2014/104/HKIA/).
New Councillors
Two by-elections were held to fill the casual vacancies following the resignation of Mr Marc Breuil and Mr Thomas Lee from the GIC and LIC respectively. Mr Dylan Bryant of Lloyd's and Ms Candy Yuen of HSBC Life (International) Ltd were duly elected Councillors.
Educational Campaign
Another burst of interactive educational campaign has just been launched via RoadShow and the social media!
We unveiled an online game for families with young children on insurance know-how (www.roadshow.hk/hkfi2014). By providing correct answers to simple questions on various types of insurance, winners will be entitled to a lucky draw for gift certificates. Families can also sign up for a family outing to a farm on 19 October 2014. Representatives from the Hong Kong Family Institute will share with participants some simple but effective communication skills with children and family members.
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Another new element of this campaign is the video clips starred by popular youtuber GingerLemonCoke. By correcting common erroneous insurance concepts the audience will receive some useful tips on the use and purchase of insurance. Check it out here at www.roadshow.hk/hkfi2014/video and share the clips with your agents and staff.
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A special vote of thanks to Mr Breuil and Mr Lee for their many years of remarkable contribution to the work of the two Councils.
In September we joined this seminar organised by the Investor Education Centre and share with more than 150 participants some insights on medical insurance and life planning.
Greater China Affairs
The 20th Cross-strait, HK and Macau Insurance Business Conference was held in Taipei on 24 and 25 September 2014. More than 160 delegates joined this signature event and exchanged views with practitioners from the Greater China Region.
Incidentally, Chairman of the Task Force on Prevention of Insurance Fraud & Claims Database Mr Allan Yu joined the third Cross-strait Conference on Prevention of Insurance Fraud held in Xi'an on 2 September and made a presentation on "Insurance Fraud in Hong Kong".
Mission Well Community Project
Thirty 3rd and 4th formers officially became the 5th batch of “Junior Financial Secretaries (JFS)” at the Swearing-In Ceremony held on 25 August 2014. 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.
Visitors
On 22 August 2014, three senior officials from Bahrain's Economic Development Board visited the HKFI to discuss ways to establish a cooperative relationship between our two insurance markets.
We have also received two delegations from the Mainland in September - one consisted of China Insurance Regulatory Commission's senior officials from various provinces and the other were medical insurance professionals from the Qianghai (青海) Province. Both were very keen to learn from us our self-regulatory regime and consumer protection mechanisms.
Tribute
We are saddened by the passing away of Mr Leung On Fook, Co-opted Member of the Insurance Agents Registration Board. Mr Leung was a staunch supporter of our self-regulatory regime and a prominent fore-runner of insurance education in Hong Kong. He will be fondly remembered.
MEMBERSHIP NEWS
Change of Authorized Representative
Direct Asia Insurance (Hong Kong) Limited (General Member) – Mr Mehmet Ismail Edip Okur
Friends Provident International Limited (Life Member) – Mr Tan Lai Hing
HSBC Insurance (Asia) Limited (General Member) – Ms Yuen Shui Fan Candy
HSBC Life (International) Ltd. (Life Member) – Ms Yuen Shui Fan Candy
Munich Reinsurance Company Hong Kong Branch (General Member) – Mr Christoph Hoch
The Pacific Life Assurance Company, Limited (Life Member) – Mr Hui Siu Kwong
QBE Mortgage Insurance (Asia) Limited (General Member) – Mr Frank Jahnke
HKFI Membership
As at 30 September 2014, the HKFI has 87 General Insurance Members and 43 Life Insurance Members.
Hon Laura Cha, Chairperson of the Financial Services Development Council as one of the key note speakers at the Opening Ceremony. In addition Secretary for Transport and Housing Professor the Hon Anthony Cheung and other government officials, industry practitioners had joined and shared with us their insights on the maritime insurance markets.
This annual conference hosted by the HKFI was a resounding success. The Hong Kong conference themed “Building Expertise for a Changing World” was attended by over 600 delegates and accompanying persons from 40 cities and countries overseas.
What’s more, we have organised two social functions Welcome Reception at Sky 100 on 21 September (Sunday) and The Hong Kong Evening at Jumbo Kingdom on 24 September respectively.
For mementoes of this important occassion, please visit http://www.hkfi.org.hk/#!/about-the-hkfi/gallery.
