2016 Extraordinary General Meeting (EGM)
The EGM held on 19 December 2016 unanimously approved the $20M funding for establishing the Centralised Insurance Claims Database to help combat insurance fraud. Your support is much appreciated. Upon completion of the
“proof of concept (POC)” by March / April 2017, we will give you a further update on progress.
2016 Christmas Cocktail Party
The EGM was followed by our traditional yearend cocktail party. We had a record turnout of over 180 members and friends of the industry, including the HKSAR Chief Executive the Honourable C Y Leung. For viewing the highlights of the evening, please visit http://www. hkfi.org.hk/#!/media-corner/album/247.
Members’ Consultation of the Proposed Holistic Consumer Protection Framework
The Insurance Claims Complaints Bureau (ICCB) also held its EGM on the same day. And the Bureau’s Chairman Mr Mike Huddart reported that of the feedback received from 42 members:
● 100% indicated their support for the proposed new framework.
● Over 87% supported the idea of offering free mediation services to consumers while insurers will pay for their own mediation costs on per case basis.
With this positive response from members, the ICCB will proceed accordingly. As part of the holistic framework, the ICCB will work with the HKFI to introduce an industry best practice guide on consumer protection.
I n early December, Secretary for Food and Health Dr Ko Wing Man revealed that at this stage, the proposed VHIS will not include Guaranteed Acceptance (GA) and High Risk Pool (HRP).
To put the record straight and avoid any misunderstanding, we issued a media release on 9 December 2016 reaffirming the industry’s support for GA with the following in place:
● The setting up of a HRP to be fully funded by the Government.
● The Administration to commit the required funding upfront to match the liability of policyholders joining the HRP for life. Year by year funding, i.e., pay as you go, is neither feasible nor sustainable.
● The Food and Health Bureau (FHB) to build a viable business model for HRP to ensure its sustainability and come up with practical and transparent guidelines for all stakeholders, including consumers.
●
Participating insurers to assume the role of administering the HRP in accordance with the parameters and rules set by the Administration.
Issue No.240 Dec 2016
Independent Insurance Authority (IIA)
O n 14 December 2016, the IIA conducted the first session of its Future Task Force of the Insurance Industry (FTF). Close to 60 representatives from the HKFI joined the meeting and shared views on the wider application of InsurTech, how to improve the image of insurance, IIA’s role in promoting Hong Kong as the regional insurance hub.
On the transitional arrangement, we have identified a list of outstanding issues and will follow up with the FSTB / OCI / IIA accordingly. Internally, we have restructured our management team to ensure we are well equipped to meet the challenges in migrating to the new IIA regime and beyond.
Industry-wide Ethics Management Training
One of the missions under the HKFI’s Vision 2028 and its Five-year Plan is to promote and organise quality insurance training, education to nurture talent and enhance the industry’s professionalism. Our initial study points to the immediate need to step up ethics management training for all industry practitioners.
At a briefing session held on 6 December 2016, we shared HKFI’s vision in uplifting the industry standard by standardising industry-wide CPD training on ethics management. The participating CEOs and training heads supported our vision and indicated their readiness to be part of the programme. A Task Force on Ethics Management Training led by Mr Stuart Harrison has been set up to conduct further studies and chart the proper way forward.
Club 2028
A nother new initiative under Vision 2028 is developing HKFI into an industry think tank. To drive this, we have formed the Club 2028 comprising a group of young and experienced executives recommended by Member Companies. Their first project is a study on “How to rebuild / improve the industry image and attract talents?” Supported by a consultant, the project team will conduct an in-depth analysis to identify the the gaps between public perception of
insurance as an industry and what the industry can offer in reality and recommend ways to address the gaps identified holistically. We expect to announce the findings in the second quarter of 2017.
Membership News
HKFI Membership
As at 23 Dec 2016, the HKFI has 91 General Insurance Members and 50 Life Insurance Members.
Given the different business needs and focuses of the life and non-life insurance markets, the Governing Committee has decided to set up two FinTech Task Forces under the General Insurance Council (GIC) and Life Insurance Council (LIC). They are chaired by Mr Harry Wong (GIC) and Mr Stuart Fraser (LIC) respectively.
The LIC’s FinTech Task Force has identified seven top priorities and set up project teams dedicated to the key areas including regulator engagement, customer engagement, digitise onboarding, etc. The GIC’s Task Force will meet the Hong Kong Applied Science and Technology Research Institute (ASTRI) in early January 2017 to explore the application of the latest cyber security technology in support of members’ business operations across the board.
Talent Development for the Insurance Industry
T he Young Insurance Executive Development
(YIE) Programme has started recruiting student-trainees for the March 2017 cohort. This is a great opportunity to bring in and groom new talent for back office operations particularly in areas like underwriting and claims management. If your company wants to know more about the recruitment exercise, please contact Ms Lesley Cheung of the HKFI Secretariat at 2861 9333.
So that undergraduates can get a better understanding of our industry and insurance as a career, the Pilot Programme to Enhance Talent Training for the Insurance Sector will be introducing a Summer Internship Programme (SIP). Under the SIP, the Government will make a maximum monthly contribution of 75% or $7,000 (whichever is the lower) for an internship period of up to 2 months. The remaining sum and cost for guidance and coaching will be borne by the participating insurers (Circular Ref: Mv122/16; website: www.instalent.org.hk). We hope to see more insurance companies making good use of this platform to help attract new blood into our industry.
Christmas Wishes and New Year Greetings
Thank you for your support and guidance during the year. May 2017 bring you good health and prosperity!
Ronnie Ng HKFI Chairman
/ InsurTech
