Monthly Brief 2015/11 EN

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2015 Extraordinary General Meeting (EGM) & Christmas Cocktail Party

The EGM will be held at 5:30 pm on Wednesday, 16 December 2015 at HKFI's conference room to consider and approve the new subscription fee scales (please refer to Circular Ref: Mv128/15 for details). This will be followed by our traditional Christmas Cocktail Party. We look forward to seeing you all there .

Competition Ordinance

The consultant appointed by the Task Force has already identified the case studies of accepted insurance activities from other markets which are relevant to the Hong Kong context and is examining the HKFI practices as a trade association. As the Ordinance will come into full force on 14 December 2015, the Task Force will organise another briefing at which the consultant will draw the attention of Members to some crucial areas. Details of the briefing shall be available in due course.

Meeting with the Secretary for Justice

Establishment of a Centralised Claims Database for the Prevention of Fraud

In some insurance markets, it is estimated that close to 10% of property / casualty insurance industry’s incurred losses and loss adjustment expenses is lost due to insurance fraud. The US data show that fraud steals US$80 billion a year across all lines of insurance. Such massive loss will push up the premium level and honest customers will suffer.

Experience from the overseas markets such as the UK, USA, Canada, Australia, etc, also shows that an industry wide claims database can help strengthen insurance industry's collaborative capabilities in detecting, deterring and preventing fraudulent claims to protect the interests of honest consumers.

In this connection, the setting up of a claims database has been chosen as a top priority item in our 5-year plan under HKFI’s Vision 2028. The results of the HKFI Member Survey conducted earlier this year also indicated an overwhelming support from Members. The Governing Committee has thus allocated a budget for the necessary consultancy study to ascertain the feasibility of the project and work out legal issues related to data privacy.

For the above work, we have set up a Provisional Board with Mr Allan Yu as Chairman. We aim at appointing the project consultant before the end of 2015 to start the ball rolling. And we shall keep you fully and timely informed of progress.

We had a lunch gathering with the Honourable Rimsky Yuen, the Secretary for Justice, last week and had a good exchange of ideas over a range of current legal issues of relevance to the insurance industry. We are most grateful to Mr Yuen for his insightful advice.

Visitors

This important project is primarily meant for the good of the insuring public at large, and we will proceed cautiously to ensure it is sustainable, legally sound and delivers the objects as intended.

W e received two senior officials from the Beijing Municipal Bureau of Financial Work and Shijingshan Financial Services Office last week. In addition to briefing them on the objective and functions of our self-regulatory regime in Hong Kong, we also shared information and observations on the market developments of both cities.

Issue No.228 Nov 2015

Educational and Publicity Campaigns

W e published the first “Smart Tips on Insurance” booklet series in 2007. More than 1.3 million copies of booklets covering ILAS, travel, building and household insurance, MPF and medical insurance have been issued so far.

In line with the theme of our publicity programme this year – career in insurance – we will, through Next Magazine, issue more than 130,000 copies of comic strip booklet featuring the professional job nature of underwriting, claims and risk management. Through the animated brush strokes of popular cartoonist Cuson Lo, we hope to arouse the interest of the younger generation in picking insurance as a career of their first choice.

Focus Group for Insurance Agents

I n September, we started issuing e-bulletins “What You Need to Know about IIA” to all registered insurance agents who have provided us with a valid email address and update them on the latest development.

Frequently Asked Questions (FAQs) on Initiative on Financial Needs Analysis (FNA)

F ollowing the issuance of the FNA in July 2015, the LIC has collected comments / questions from the Life Insurance Members (LIMs) and finalised the FAQs on FNA to facilitate compliance by LIMs. The current version of the FAQs issued on 13 November 2015 (Mv126/15) is the result of ongoing discussions between the IA and the LIC.

To better understand what sort of industry information insurance agents would need and want to know, we

conducted our first focus group meeting and gathered very constructive suggestions. More focus group meetings will be conducted in the months ahead. If you are registered insurance agents and are interested in providing your views, please sign up at: http://182.173.76.121/hkfi_ email/index.html

We are pleased to note that the IA has taken into account a number of suggestions from the LIC with a view to striking a good balance between customer protection and practical business operations. After implementing the FNA on 1 January 2016, LIMs are welcome to forward their observations and comments to us. The LIC will keep the matter under review and seek further dialogue with the IA if necessary.

As at 30 Nov 2015, the HKFI has 88 General Insurance Members and 45 Life Insurance Members.

Membership News Change of Authorised Representative
Inusrance Company (Hong
Ltd. (General Member) - Mr Wong Tak Keung
-
Wai Yee
HKFI
Mike Lee HKFI Chairman
Paofoong
Kong)
Zurich International Life Limited (Life Member)
Ms Choi
Paula
Membership

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