February 2015 Issue No. 220
New HKFI Members
On behalf of the Governing Committee, I would like to extend a warm welcome to BE Reinsurance Limited and Berkshire Hathaway Specialty Insurance Company as HKFI General Insurance Members.
HKFI Annual Reception 2015
The HKFI Annual Reception will be held on Thursday, 16 April 2015 at 6:00 pm at the Garden Lounge of the Hong Kong Club. Secretary for Labour and Welfare Mr Matthew Cheung will be our principal Guest-of-Honour. We look forward to seeing you that evening.
Voluntary Health Insurance Scheme (VHIS)
Since the release of the Government's consultation document on the proposed VHIS, we have been busy meeting various stakeholders explaining the grave concerns of the industry and suggesting a practical
and viable way forward. They included Legislative Councillors from various political parties as well as independent members, Hong Kong General Chamber of Commerce, Hong Kong Medical Association, etc.
On 6 February 2015, Deputy Chairman of our Task Force on Health Care Reform Ms Elaine Chan, Chairman of the Medical Insurance Association
Mr Terry Tsang and General Committee Member of the Insurance Claims Complaints Bureau (ICCB) Mr Mike Lee attended the public hearing at the Legislative Council. They presented the industry's concerns on VHIS from various perspectives. Our submission to the Legislative Council is available at www.hkfi.org.hk/pdf/en/download/VHIS_20150212_E.pdf.
On 9 February 2015, we organised an industry forum for 200 representatives of Member Companies and industry bodies. At this forum attended by Dr Ko Wing Man, Secretary for Food and Health, participants raised many good questions and comments and we had positive exchange of views.
forum for 200 representatives of Member this
We are pleased to note that Dr Ko acknowledged the concerns of the industry and invited us to come up with practical solutions to improve the VHIS. On this, the Task Force on Health Care Reform is in the process of seeking Members' comments/input on how to modify the proposed scheme and make it commercially viable and sustainable. For a synopsis of the industry forum and the HKFI's presentation on its concerns on VHIS, please refer to Circular (Ref: Mv015/15).
Independent Insurance Authority (IIA)
While awaiting their feedback on our suggested wording on some clauses of concern, we have forwarded to the Financial Services and the Treasury Bureau (FSTB) an independent legal advice from Richard Gordon QC, an internationally renowned London counsel, on the issues of best interests and the disciplinary process. We will set up a meeting with the FSTB and the Insurance Authority (IA) in the near future to discuss these issues in greater depth and explore workable solutions.
Policyholders' Protection Fund (PPF)
Discussion with the Administration on PPF has been progressing well. In early 2015, we wrote to the Commissioner of Insurance expressing our concerns on some outstanding issues, i.e. the proposed levy cap for the Life Scheme, continuity of cover, refund of pro-rata premium of unexpired policies, offshore risks, coverage for SMEs, increasing the limit of indemnity for compulsory classes of business (other than EC and Motor), aggregate claims limit, etc. We are awaiting response from the FSTB and the IA.
Insurance Claims Complaints Bureau (ICCB) 25th Anniversary Cocktail Reception
On 5 February 2015, ICCB celebrated its Silver Jubilee with Professor the Hon K C Chan, Secretary for Financial Services and the Treasury, as the officiating guest. Since its inception in 1990, ICCB handled 7,000 complaints and facilitated settlements of HK$56 million.
In recognition of the remarkable contribution of the long-serving voluntary members, the Hon K P Chan presented souvenirs to Insurance Claims Complaints Panel Chairman Mr Michael Tsui who has served the ICCB since 1994 and seven Honorary Secretaries who have offered their services for over 15 years. For details, please visit http://www.iccb.org.hk/25anniversary/index.html.
Green Power Hike 2015
On 7 February 2015, 50 teams competed for the HKFI Cup. Congratulations to Manulife (International) Limited on winning both the 50 km and the 10 km races and Convoy Financial Group on the 25 km race. With the generous support from participating companies, the industry raised a total of HK$600,000 this year to help funding projects on environmental education.
Teenagers’ Poll on Ten Top Financial News in the Year of Horse
The Junior Financial Secretaries carried out a poll on the Top Ten Financial News in the Year of Horse among secondary schools students in Hong Kong. A total of 6,572 responses were received and the results were announced on 17 February 2015. The top three news receiving the highest votes were:
1. Alarming food scandal concerning McDonald’s Hong Kong importing rotten meat from Shanghai Husi Food (54.12%);
2. Occupy Central's impact on the economy and people's livelihood (50.97%);
3. iPhone 6's frenzy release and associated speculation for parallel trading (49.97%). Details are available at http://missionwell. bgca.org.hk/common/listdet.aspx?center=0702&id=6231.
Lunar New Year Greeting
On behalf of the HKFI Governing Committee, may I wish you and your family a Healthy and Successful Year of the Ram! Gong Xi Fa Cai and Yang Yang De Yi!
MEMBERSHIP NEWS
New Authorized Representative Berkshire Hathaway Specialty Insurance Company (General Member) - Mr Marc Breuil
HKFI Membership
As at 27 February 2015, the HKFI has 88 General Insurance Members and 43 Life Insurance Members.
Jimmy Poon HKFI Chairman