Monthly Brief 2017/10 EN

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Collection of Levy for Insurance Authority (IA)

S tarting from 1 January 2018, the IA will collect premium levy from policyholders through insurance companies. It is of paramount importance for millions of policyholders to understand their legal obligation to pay such a levy. We are pleased to note that the IA has set up a dedicated webpage, rolled out TV and radio announcements and issued a leaflet providing handy information. For details, please visit www.ia.org.hk/en/ aboutus/role/financial_arrangements.html.

Direct Licensing Regime for Insurance Intermediaries

T he IA officially came into operation on 26 June 2017. They are targeting to implement the above regime within two years. A Working Group has been restructured recently to discuss the relevant draft rule / codes / guidelines for the regulation of intermediaries and the transfer of data and records from the SROs. HKFI and the Insurance Agents Registration Board are represented on the Working Group to provide input to ensure a smooth transition to the new regime.

Regulated activities conducted by salaried staff

I n the light of the legal advice provided by our counsel Reed Smith Richards Butler and the set of scenarios put together by Member Companies, we have proposed a list of back office duties in broad categories for exemption from the licensing requirement. The list is now being reviewed by the IA and the general consensus is to adopt a principle-based approach. We will keep you posted on developments.

Centralised Insurance Claims Database for the Prevention of Fraud (DB)

T he Project Team conducted two briefings for the IA CEO and the Privacy Commissioner and their senior executive teams in mid-October 2017. In addition to showcasing the results of the Proof-of-concept exercise and the fraud detection capability of our appointed vendor Shift Technology, we also presented the data privacy protection framework of our DB. We are fine tuning the proposed framework to take account of the constructive response and feedback from the regulators.

We remain on target to launch phase 1 of our DB in the first half of 2018 covering motor, medical and personal accident lines of business.

Digitizing motor cover note

A fter months of consultation, the Food and Health Bureau (FHB) has come up with a draft Standardised Policy Terms and Conditions for VHIS. While we are pleased to note that the FHB has taken into account some of our concerns and suggestions, there are still outstanding issues which needed to be resolved, e.g. regulatory authority, migration arrangement, etc.

The FHB has kindly agreed to brief Members on details of the latest VHIS framework and answer questions. Information of the briefing will be made available soon.

Membership News

HKFI Membership

Subsequent to the cracking down of the bogus website selling fake cover note late last year, the Commercial Crime Bureau, the IA, the Transport Department and HKFI met to find ways to prevent / eliminate such illegal act and facilitate application / renewal of vehicle licences. It was agreed that the problem could well be tackled with the help of technology.

The Accident Insurance Association has thus invited suitable vendors to build an electronic platform for relevant parties to authenticate cover note. Stay tuned for more updates on this InsurTech project!

As at 31 Oct 2017, the HKFI has 87 General Insurance Members and 48 Life Insurance Members.

Issue No.249 Oct 2017

Insurance Complaints Bureau (ICB)

T he name of the Insurance Claims Complaints Bureau (ICCB) will be changed to ICB to better reflect its expanded service scope. The proposed change has already been approved by the Companies Registry and it will be formalized by a special resolution at the General Meeting to be held on 13 December 2017

Hong Kong Maritime Week

T o support the 2nd Hong Kong Maritime Week (HKMW) to be held in the fourth week of November, HKFI and Asia Insurance Review are co-organizing the 5th Asia Marine Insurance Conference on 20 and 21 November and support other events, including, HKMW Orienteering Race, Asian Logistics and Maritime Conference, etc. Our Members will enjoy a very preferential rate at the Asian Marine Insurance Conference. For further details of the Conference and the HKMW, please visit www.hkmw.hk/english/event.html.

W inners of the 15 categories were unveiled at the Prize Presentation Ceremony cum Gala Dinner of the Hong Kong Insurance Awards 2017 on 26 October 2017!

The event was well attended with more than 320 guests, including our distinguished panel of judges, the top three finalists, contestants and many community and industry leaders. Thanks to your participation, it was a delightful evening of recognizing and celebrating the remarkable achievements of our industry. Highlights of the joyous moments can be found at http://www.hkfi.org.hk/hkia/press21.html. We look forward to your continued support in the future!

Winners of Hong Kong Insurance Awards 2017

Outstanding Claims Management Award

AIA International Limited

Outstanding Customer Services Award

Prudential Hong Kong Limited

Outstanding Training & Development Award

AXA Hong Kong

Outstanding Corporate Social Responsibility Award

Prudential Hong Kong Limited

Outstanding Integrated Marketing Strategies Award - Corporate

AIA International Limited

Outstanding Integrated Marketing Strategies Award - Product/Service

Manulife (International) Limited

Outstanding New Media Marketing Strategies Award

AIA International Limited

Outstanding Online Platform Award

FWD Life Insurance Company (Bermuda) Limited

Most Innovative Product/Service Award

Insur8 - Swiss Re International SE

Most Innovative Product/Service Award

- Health Specialty

ONEdna - HSBC Insurance (Asia) Limited

Outstanding InsurTech Innovation Award

FWD General Insurance Company Limited

Outstanding Reinsurance Scheme Award

RGA Reinsurance Company

Outstanding Professional of the Year - Corporate

Ms Elaine Chan

Zurich Insurance (Hong Kong)

Outstanding Agent of the Year

Mr Kinson Ng

Prudential Hong Kong Limited

Outstanding Young Professional of the Year

– Intermediary

Mr Steven Wang

AIA International Limited

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