Message from HKFI Chairman
I am honoured to be elected as HKFI Chairman for the 2017/2018 term.
With the Insurance Authority officially replacing the Office of the Commissioner of Insurance (OCI) on 26 June 2017, we as an industry are embarking on a new journey of transformation to a better future. The HKFI will continue to play an instrumental role as the progressive voice of the industry. I am looking forward to your continuing wise counsel and unwavering support.
Stuart Harrison HKFI Chairman
Independent Insurance Authority (IIA)
T he Government announced the appointment of five senior executives of the IIA:
● Mr John Leung – Chief Executive Officer;
● Ms Carol Hui – Executive Director, Long Term Business;
● Mr Simon Lam – Executive Director, General Business;
● Mr Stephen Po – Executive Director, Market Conduct; and
● Mr Raymond Tam – Executive Director, Policy and Development.
We look forward to working closely with them to ensure a smooth transition to the new regulatory regime for the benefit of all stakeholders.
As regards the collection of policy levy for the IIA, the second draft note was released in mid-May. We are now inviting comments from Members on the latest version of the proposed collection mechanism (Circular Ref: Mv056/17).
Risk Based Capital (RBC) Framework
OCI invited us to provide comments on the draft Life Prescribed Capital Requirement (PCR) under the Quantitative Impact Study (QIS). The Task Force on the subject has thus organized an Open Meeting on 4 May 2017 to discuss the areas of potential controversy contained in the draft. Representatives from 19 for Life Insurance Members (LIMs) participated.
On 9 May 2017, the Task Force submitted an industry response to OCI setting out our key concerns. Also, we recommended adopting a simpler approach by defining stress-based for all risk modules, indicating a date of transition to the new standard, taking into account the impact and complexity of implementing IFRS 17 promulgated by the International Accounting Standards Board, etc.
Cyber Security Information Sharing Platform (CISP)
The CISP is jointly launched by the HKFI and the Hong Kong Applied Science and Technology Research Institutes (ASTRI). It has the full support of the Commissioner of Insurance who has kindly written to encourage all authorized insurers in Hong Kong to join the CISP for effective exchange of alerts or warnings on cyber-attacks, better preparedness of insurers and timelier actions to strengthen the preventive, detective and recovery processes. For details, please refer to Circular Ref: Mv057/17.
A t the first Consultative Group meeting held on 9 May 2017, the Food and Health Bureau (FHB) briefed industry representatives (including four from the HKFI) and stakeholders from different interest groups on the core objectives and work plan of the VHIS consultancy studies.
Our Healthcare Task Force already met FHB’s appointed consultant and reiterated industry’s concerns over key issues relating to the proposed VHIS product approval process, definition of products eligible for tax concessions, case-based exclusions for pre-existing conditions, guidance note on regulatory compliance, communications with the public, etc.
To ensure the smooth launching of the Scheme and secure maximum buy-in from the members of the public, we will work closely with FHB’s consultants in search of workable solutions.
Issue No.245 May 2017
Consultation on Strengthening the Regulation of Person-to-Person Telemarketing Calls
T he Commerce and Economic Development Bureau has just launched the captioned consultation inviting public views on suggested options:
● “Trade Specific Self-regulatory Regime” – the establishment of codes of practice by trade associations, encompassing tailor-made best practices in making telemarketing P2P calls in specific trade(s).
● “Call-filtering Applications in Smartphones” –Telemarketers are not prohibited to make telemarketing calls but their calls will be automatically filtered.
Development and Usage of Digital Certificates in Hong Kong
T he Office of the Government Chief Information Officer (OGCIO) is now conducting a consultancy study to explore effective measures to facilitate the wider use of digital certificates in Hong Kong.
On 22 May 2017, the Government’s appointed consultants briefed our FinTech Task Forces on details of the study. We had a good exchange of views on how to promote the wider adoption of digital certification services and e-identity in the insurance space.
Young Insurance Executive Development Programme (YIE)
YIE Programme is recruiting young talents to join the upcoming July cohort. Eight member companies are providing 15 positions for YIE trainees. To equip the talents with the industry know-how and the expected attitude of an industry practitioner, HKFI Chief Executive Mr Peter Tam and Dr Tai Sik Kwan, Visiting Lecturer at PolyU’s Department of Logistics and Maritime Studies provided a briefing on 31 May. The participating talents were appreciative of the professionalism and diversity of industry development and career opportunities respectively. They showed a high level of enthusiasm and eagerness to join the industry.
● “Do-not-call Register” operates on an “opt-out system” –subject to legal sanction, either civil or criminal.
It is understood that not a lot of Member Companies conduct P2P calls marketing activities. And we are gathering views from those affected and will provide a consolidated feedback to the CEDB in due course (Circular Ref: Mv054/17).
Establishment of an Insurance Claims Database for the Prevention of Fraud
T hanks to the hard work of the Project Team of data scientists from our appointed vendor Shift Technology in the past four months, the Proof of Concept (PoC) exercise is near completion. Details of the project outcomes will be presented to all Members together with the proposed legal framework in due course. Stay tuned for more update!
Hong Kong Insurance Awards 2017
We are delighted to launch the Hong Kong Insurance Awards 2017 with our new partner the South China Morning Post (SCMP), the leading English newspaper in town.
New elements / categories have been introduced for the prestigious Awards. This year, we have expanded the scope of entries to include consultancies, law firms and relevant service providers who are an integral part of the success of the industry. Details are available at the official website at www.hkfi.org.hk/hkia/index.html. For enquiries, please contact SCMP’s Ms Zelma Cheung at 2565 2494 / 6100 7273 or at email zelma.cheung@scmp.com.
Send in your applications before the submission deadline on 31 July 2017. An Awards Presentation Ceremony cum Gala Dinner will be held on 26 October 2017 at the InterContinental hotel.
Membership News
Change of Authorized Representative
● AXA General Insurance Hong Kong Limited (General Member) – Mr. Christopher Read
● Bank of China Group Insurance Company Ltd. (General Member) – Mr. Zhuo Cheng Wen
● HSBC Insurance (Asia) Limited (General Member) – Mr. Edward Moncreiffe
● HSBC Life (International) Limited (Life Member) – Mr. Edward Moncreiffe
● Starr International Insurance (Asia) Limited (General Member) – Mr. Ross Matthews
● Zurich International Life Limited (Life Member) – Mr. Richard Clairmonte
HKFI Membership
As at 31 May 2017, the HKFI has 88 General Insurance Members and 48 Life Insurance Members.
