Establishment of the Independent Insurance Authority (IIA)
The new licensing regime under the IIA will be “activitybased", in that all persons who engage in "regulated activities" will need to be licensed. This includes licensing of the employees of insurers who may not previously have had to be licensed. There are, however, certain exemptions from the licensing requirements for staff of insurers under section 123, many of which were included at the suggestion of the HKFI.
In this connection, we have prepared some FAQs to assist Member Companies to understand the new licensing requirements. We are also collecting further questions from Member Companies in this regard (Circular Ref: AY/SL/ec/15-032). We will then approach the Government and the Provisional Insurance Authority and seek clarification, with a view to producing a set of comprehensive guidelines well in advance of coming into force of the new licensing regime.
Policyholders’ Protection Fund (PPF)
In February 2015, we wrote to the Commissioner of Insurance on a raft of outstanding issues regarding the PPF. We were disappointed to receive a reply from the Insurance Authority in mid-August 2015 rejecting the majority of our recommendations.
We strongly believe that it is important not to inadvertently create systemic risks to the industry so we will engage a legal expert to help further explain our position to the Administration.
Setting up of an Insurance Claims Database
B
uilding an industry-wide insurance claims database is on top of our agenda. The idea, borrowed from overseas markets like the UK, is to help combat insurance fraud to protect public interest. As a first step, we will engage Member Companies to obtain their support and map out our way forward.
We have also started dialogue with the new Privacy Commissioner Mr Stephen Wong to ensure we strike the right balance between protection of personal data and the free flow of information as required under this project.
Developing Hong Kong into a Financial Technology
(Fin Tech) Hub
Hong Kong as an international financial hub is lagging somewhat behind other regional markets in terms of digital technology. In support of Government’s latest initiative in tackling this problem, we have set up a task Force on Fin Tech Hub. The Task Force led by Mr Lennard Yong has identified six key areas to work on and will come up with some concrete recommendations.
Guides for Insurers and Agents on Contracting Procedures
T here has been concern that individual insurance agents might not fully understand the contractual terms before they sign the contract/agency agreement with insurance companies, which may result in unnecessary disputes. To address this, the HKFI has devised two sets of Guides for Insurers and Agents respectively. Also it is suggested that new individual agents be given a copy of the Chinese version of the contract for reference.
Hong Kong Insurance Awards 2015
Congratulations to the top three finalists for each of the 13 award categories! They met the panels of judges on 16 and 17 September (http://www.hkfi.org. hk/hkia/2015finalists.html) for the final phase of adjudication.
The winner of each award will be formally announced at the Prize Presentation-cum-Gala Dinner to be held on 29 October 2015 at the InterContinental HK. Prominent guests and members of the judge panel will join this event and present the trophies to the deserving winners. Reserve your tables now at http://www.hkfi.org.hk/hkia/tablebooking.html to celebrate the top-notched performance of our industry!
Seminar on the English Insurance Act 2015
In collaboration with the Hong Kong Insurance Law Association, we are organising this CPD seminar on 19 October 2015 to exchange views on the potential impact of the Insurance Act 2015 on the Hong Kong insurance market. Professor Robert Merkin will be the keynote speaker and he will be joined by other renowned academia and legal and insurance experts on the discussion panel. It will focus on policy terms and coverage as applied to both general and life insurance. Seats are running out fast. Sign up for it now (Circular Ref: SL/ec/15-031). This is one of the many high level seminars/conferences we are going to organise as part of our 5-year plan under HKFI’s Vision 2028. Stay tuned as more exciting programmes will be lined up.
Young Insurance Executive Development (YIE) Programme
T he third cohort of the YIE programme will commence next month. To attract more potential youngsters to join the industry, we have launched a publicity campaign to educate the public on the various career opportunities the industry is offering.
Besides publishing printed and online ad in one of the most popular recruitment platforms, we have arranged a famous Metro Radio host chit-chatting with veteran insuranceinsurance practitioners, teachers and trainees of the YIE Programme in an 8-episode programme (http://www.metroradio.com.hk/Campaign/2015/997/HKFI/).
We have also conducted a career talk at The Hong Kong Polytechnic University – Banking & Finance Career Fair 2015 which attracted more than 70 students. More talks will be lined up with universities and tertiary institutes to promote insurance as a good career for young graduates.
To attract new blood to the industry, we have launched an insurance career programme in partnership with the Hong Kong Federation of Youth Groups ( 香港青年協會 ). Through interactive game and case studies, high school students will get to know that insurance offers a promising future for young people seeking a long term professional career.
Cross-strait, HK & Macau Insurance Business Conference
I am delighted to report that the above conference, held from 10 to 11 September 2015, was a resounding success. More than 170 insurance practitioners from HK, Mainland, Taiwan and Macau participated in this annual event to discuss topical issues on financial technology innovation. Our sincere appreciation to the speakers and moderators for their thought-provoking presentations and sharing of insightful ideas. I would also like to thank all delegates for their support and active participation. Photos and mementos are available at: http://www.hkfi. org.hk/#!/media-corner/album/169. The next conference will be held in the Harbin, Heilongjiang. We look forward to your continued support and participation.
Visitors
Professor Lou Xiangming and his academic team at at the Guangdong University of Finance paid us a visit on 14 August 2015. They shared with us information on the latest developments of the new Free Trade Zones and their thinking on what can be done to promote the mutual interests of the insurance markets in Hong Kong and the Mainland.
On 24 September 2015, President-elect, Chief Executive and Lead Representative in Asia of UK’s Institute and Faculty of Actuaries visited the HKFI and we had a good exchange of views on the latest regulatory changes in Hong Kong including IIA, PPF and Risk Based Capital framework.
Dah Sing Life Assurance Company Limited (Life Member) - Mr
HKFI Membership
As at 9 Sept 2015, the HKFI has 88 General Insurance Members and 45 Life Insurance Members.
Mike Lee HKFI Chairman