Independent Insurance Authority (IIA)
The Legislative Council's Bills Committee reconvened after the summer break and met on 20 October 2014. It transpired that the Administration intended to regulate the paid staff of insurance companies who have direct interaction with customers or policyholders on sales or advisory matters relating to insurance policies. This may affect a wide spectrum of salaried staff performing functions such as customer service, telemarketing, sales & distribution, marketing, underwriting and claims. We conducted a quick survey among all Member Companies on the impact this might have on their business operations. 103 Members have responded which included a vast majority of direct insurers. Our concerns were duly reflected to the Financial Services and the Treasury Bureau (FSTB) and the Insurance Authority (IA) at a meeting held on 30 October 2014. We are pleased to note that the Administration had indicated willingness to explore with us practical ways to address the concerns raised. The Task Force on IIA will come up with some suggested solutions and consult our Members before discussing this further with the regulator.
Risk-based Capital (RBC) Framework for Hong Kong
The three members briefings on RBC were over-subscribed. All sessions were moved to bigger venues to accommodate more participants. Thanks to the detailed explanation by Ms Annie Choi, Commissioner of Insurance, Members now have a better grasp of the major changes being considered and the potential impact on industry players, big and small.
The Task Force under the Governing Committee and the two Sub-groups set up by the General Insurance Council and the Life Insurance Council are now studying the issue in depth. We will keep you informed of developments.
Captive Insurance
At the invitation of the FSTB, I represented the HKFI at the 6th China Overseas Investment Fair held last week at the Beijing Exhibition Centre. Riding on the theme of the forum "Hong Kong Financial Services Support Mainland Company Going Global" (香港金融服務助推中國企業走出去), we took the opportunity to understand more the needs of mainland’s enterprises on captive insurance and show them the benefits of establishing captive insurance in Hong Kong.
Pilot Scheme on “Young Insurance Executive Development Program”
In a survey conducted by the Task Force on Apprenticeship Programme, about 30 General and Life Insurance Members registered their interest in providing placement opportunities in various fields. They include underwriting, claims, policy/pensions administration, product development, actuarial support, sales/marketing and customer servicing. We are making progress together with the Vocational Training Council in developing a suitable curriculum for the pilot scheme. Also, we are actively exploring ways to promote this programme to try and attract more entrants by, for example, providing scholarships through the HKFI Educational Trust.
In the meantime, the FSTB is putting together key recommendations on career navigation and training initiatives for the insurance sector. Details on Government’s support including financial subsidies should be available by the end of 2014.
From Compensation to Rehabilitation – A Social Review on Employees' Compensation Insurance System in Hong Kong
The Employees’ Compensation Insurance Residual Scheme Bureau has appointed the Department of Social Work and Social Administration of the University of Hong Kong to conduct the above study. The Review aims to provide a social assessment of work-related injury and death in Hong Kong, thus enabling policy makers to better understand the core issues in question and identify cost-effective measures to prevent work injury and reduce its economic and psychological burden on injured workers and their families. The study, to be completed in the summer of 2015, will examine the barriers and obstacles for injured workers to return to work and evaluate the effectiveness of the Multidisciplinary Orthopedics Rehabilitation Empowerment (MORE) programme.
Educational Campaign
We have launched a series of family-oriented programmes via Roadshow lately. Close to 160,000 people have visited the educational mini-site on insurance within the past 2 months and more than 83,000 people have played the online game on insurance know-how. Around 20 families with kids, selected by lots, participated in an outing to a farm on 19 October 2014. In addition to experiencing organic farming, producing handcrafts and making local snacks, they also learnt a lot from the talk on parental communications delivered by the Hong Kong Institute of Family Education.
For snapshots of this delightful and meaningful event, please visit www.roadshow.hk/ hkfi2014/activities_highlight.
Visitor
President and Chief Executive Officer of the International Insurance Society Mr Michael Morrissey visited the HKFI earlier this month to discuss ways to strengthen collaboration between our two organisations.
Green Power Hike HKFI Cup 2015
The HKFI is supporting the Green Power Hike for the twelfth consecutive year. A total of 183 teams from the insurance industry have participated in this annual charitable walkathon since 2004. The next Green Power Hike will be held on Saturday, 7 February 2015. We are appealing to you, your colleagues and agencies to continue supporting this meaningful cause.
For further details, please contact Ms Eva Sit at 3961 0219 or Ms Candy Yau at 3961 0209.
MEMBERSHIP NEWS
Change of Company Name
Sompo Japan Insurance Inc. (General Member) to Sompo Japan Nipponkoa Insurance Inc.
Change of Authorized Representative
Sompo Japan Nipponkoa Insurance Inc. (General Member) – Mr Koji Ichinowatari
HKFI Membership
Jimmy Poon HKFI ChairmanAs at 29 October 2014, the HKFI has 87 General Insurance Members and 43 Life Insurance Members.
Supplements were published in the Hong Kong Economic Journal (信報) , Economic Digest (經濟一週) and South China Morning Post. Highlights of the gala dinner are also showcased at RoadShow. More happy mementoes are available at www.hkfi.org.hk/insuranceaward2014/photogallery.html.
The prize presentation cum gala dinner for the inaugural Hong Kong Insurance Awards 2014 was successfully held on 9 October 2014. Three hundred guests including judges for the Awards, contestants and industry leaders gathered together to acknowledge and celebrate the success of the winners and the achievement of the insurance industry.
With your continuous support we are confident that this will become the most prestigious and well respected award for the insurance industry in Hong Kong.
