Regulated Activities Conducted by Salaried Staff
T his is a subject of great concern to our member companies. We raised the matter and sought clarifications with the then Commissioner of Insurance back in 2015.
In August 2017, i.e. two months after its official commencement of operation, the Insurance Authority (IA) invited us to a meeting to discuss the way forward. It was agreed that the regulation of salaried staff should be principle-based and we undertook to propose a framework to assist insurers in complying with the letter and spirit of the law. With the assistance of our counsel Reed Smith Richards Butler, we have come up with a proposed framework for further discussion with the IA.
T o facilitate Members’ participation in the first RBC Quantitative Impact Study (QIS 1), we organized three briefings in August where IA’s Executive Directors shared their thoughts. We had a good turnout of about 460 participants. The information provided is useful and we now have more clarity on what is expected.
Noting the difficulty some General Insurance Members might have in completing the questionnaire for QIS 1, the GIC’s Task Force on RBC organized a workshop on 25 September 2017. Consultant KPMG assisted GIMs, in particular those with limited actuarial support, to go through the relevant templates step by step. We are doing all this to help enhance the industry’s overall readiness for the introduction of the RBC Framework.
Risk-based Capital (RBC) Framework Establishment of an Insurance Claims Database for the Prevention of Fraud (DB)
At a workshop held on 21 September 2017, our appointed service provider Shift Technology reported on the positive results of the proof of concept we conducted earlier on with the input of claims data from seven local motor insurers. They also showcased the application of similar technology in detecting health insurance fraud, citing experiences in other markets. About 100 representatives from over 50 Members Companies attended the workshop.
We are going to meet the Privacy Commissioner next month to brief him on the operation of the DB within the relevant Personal Data (Privacy) Ordinance. The DB is expected to go live in Q2 next year and we look forward to your continued support (Circular Ref: Mv096/17)
I n 2012, we introduced a platform together with the Commercial Crime Bureau (CCB) of the Hong Kong Police Force to coordinate the reporting of suspicious cases relating to motor insurance claims.
With the assistance of the Hon K P Chan, the CCB has expanded this reporting platform to include EC insurance claims. A briefing was held on 1 August 2017 to update Members on how this reporting platform works and how to gather admissible evidence to substantiate a fraud case. We also learned about the “Anti-deception Coordination Centre” set up by the CCB to provide instant telephone consultation service (18222) for the general public, including insurance companies, on suspicious deception cases.
InsurTech
T he IA has recently introduced the “InsurTech Sandbox and Fast Track Treatment”. We welcome this as a vital step to encourage insurance companies to try out new ideas and initiatives and help accelerate InsurTech development.
At IA’s invitation, we have suggested ways to improve the operation of these frameworks with a view to ensuring that they are fit for purpose.
The Task Forces under the General Insurance Council and the Life Insurance Council are now busy preparing proposals on e-cover note for motor insurance, framework for cloud computing, e-onboarding and identity authentication. There will be more updates in the months to come.
Marine Insurance
HKFI led a 21-member HK delegation to the International Union of Marine Insurance (IUMI) Annual Conference in Tokyo last week, the first time after HK became IUMI’s Asian Hub in October last year. Under the theme “Disruptive Times-Opportunity or Threat for Marine Insurers?”, the conference provided useful updates and insights on topical issues like cyber risks and blockchain.
Member Companies can now nominate their existing staff to join this work and earn programme and receive Government’s subsidy under the Pilot Programme to Enhance Talent Training for the Insurance Sector (Pilot Programme)!
The scope of the Pilot Programme has been expanded to cover new recruits of member insurers. Specifically, any staff who has joined the company for not more than 2 years and meets the relevant requirements will be entitled to a salary subsidy of $40,000 and have the chance to be selected for an overseas immersion programme. Top three performers will each receive a scholarship of $10,000 offered by the HKFI Educational Trust.
A briefing was held on 21 August 2017 to bring HR / training heads up to date on this new development. For details, please call HKFI Secretariat at 2861 9333 or VTC Secretariat at 3974 3669 / 2836 1793.
20 November 2017 will mark another important milestone in marine insurance – the Executive Certificate Programme jointly organized by HKU SPACE and HKFI will be formally launched at the Asian Marine Insurance Conference co-organized with Asia Insurance Review (www.asiainsurancereview. com/Events/Home/Asia/Marine2017). Officiating guests will include Secretary for Transport and Housing the Hon Frank Chan and IUMI President Dieter Berg. The Programme, which has gained ANZIIF’s recognition, will be rolled-out as the first IUMI recognized curriculum in Asia.
W ith funding support from the Financial Services and the Treasury Bureau (FSTB), the Pilot Programme has launched a “We Protect” campaign to highlight the core function of insurance in protecting people and the wide spectrum of professional jobs available in the insurance industry.
Thanks to the enthusiastic support from Member Companies and practitioners, we recruited some back office professionals in our talent hunt and portrayed them in the campaign. When you travel by MTR or road transport, look out for these cool and chic posters featuring our insurance professionals! More publicity campaigns are on the way. Stay tuned!
We met the Food and Health Bureau (FHB) and their consultant several times to discuss the Standardized Policy Terms and Conditions and Schedule of Benefits for the Standard Plan. Also we tried to address some new elements proposed lately by FHB including waiting period, coverage for congenital and psychiatric diseases, coinsurance for OGD tests, payment for surgery, etc.
Hong Kong Insurance Awards 2017
T his year, more than 100 quality entries were received from the industry competing for 15 categories. Thanks to the hard work of our honourable judges, top three finalists for each category were shortlisted (http://www.hkfi.org.hk/ hkia/2017finalists.html).
The finalists were interviewed individually by the panel of judges on 20 and 21 September and the final winners will be announced at the Prize Presentation Ceremony cum Gala Dinner to be held on 26 October at the InterContinental HK. Reserve your tables now at http://www.hkfi.org.hk/hkia/book. html for an evening of good fun and to join us in celebrating remarkable achievements of our industry members!
Membership News
Change of Company Name
● AIG United Guaranty Insurance (Asia) Limited (General Member) to Arch MI Asia Limited
HKFI Membership
As at 29 Sept 2017, the HKFI has 87 General Insurance Members and 48 Life Insurance Members.