2017 Extraordinary General Meeting (EGM) & Christmas Cocktail Party
A s approved at the EGM held on 13 December 2017, the membership subscription fees next year for both General Insurance Members and Life Insurance Members will remain unchanged.
Direct Licensing Regime for Insurance Intermediaries
Based on the response from Member Companies, we have prepared a submission to the Insurance Authority (IA) on the draft codes / guidelines to be introduced under the direct licensing regime for insurance intermediaries.
The EGM was followed by our traditional year-end cocktail party. We had more than 160 members and friends of the industry sharing this joyful evening with us. For highlights of the evening, please visit http:// www.hkfi.org.hk/#!/media-corner/album/319.
In essence, the HKFI is supportive of proposals which improve and upgrade the professional standard of our intermediaries including the introduction of core subjects for CPD training and e-learning for better outcomes. At the same time, we reiterate the importance of a smooth transition to the new licensing regime for the existing insurance intermediaries and the industry being able to continue to attract new blood.
Centralised Insurance Claims Database for the Prevention of Fraud (DB)
We are going to set up a Steering Committee to oversee the development and administration of the DB. The objective is to reassure the public that the construction of the DB fully adheres to the cardinal principle of data privacy protection by design and there is a proper and effective governance structure on transparency, risks control and risks mitigation.
The SC will consist of majority of non-industry members from a wide spectrum of professional fields – legal, data privacy, medical, technology, consumer protection, academic, etc. We will provide more details on this and the implementation roadmap and timeline early next year.
We have been in close dialogue with the Food and Health Bureau and its consultants to ensure the industry’s views and concerns are well taken into account. Meanwhile, the FHB has formulated a Code of Practice under the Ambit of VHIS. It is being reviewed by our relevant working group.
To ensure Members are aware of the key features of the Code, the FHB will conduct a briefing on 9 January 2018 to explain the details and answer questions. For registration details, please refer to Circular Ref: Mv122/17.
Issue No.251 Dec 2017
Policyholders’ Protection Schemes (PPS)
S ince our last consultation on PPS in early 2016, the IA has recently revived the discussion. For life business, the IA proposed a new “custodian trust” approach to reduce the likely financial strain to the PPS and thus dissipate the potential increase of the levy from the initial 0.07% to the 1% cap. For general business, there remain concerns over the continuity of cover for policies, refund of unexpired premiums for policies, coverage of offshore risks and definition of SMEs, etc.
To get members up to speed, we invited the IA and the Financial Services and the Treasury Bureau to conduct a briefing for all Members on 19 January 2018 (Circular Ref: Mv119/17, Mv121/17 and Mv126/17).
HealthTech
ABriefing-cum-demo session on “Can tech help? –Preventive and screening solutions that may lower medical cost” was jointly held by the Medical Insurance Association and Hong Kong Science and Technology Parks on 8 December 2017. HealthTech startups introduced affordable screening and early diagnosis technologies to close to 100 practitioners. Participants were all very impressed. More Tech-related information sessions will be arranged for Members in the near future. Stay tuned!
– Insurance Contracts (IFRS 17)
The International Accounting Standards Board’s IFRS 17 will become effective on 1 January 2021. The implementation of IFRS 17 will present many challenges to Hong Kong’s insurers particularly those with limited actuarial support. While the Hong Kong Institute of Chartered Public Accountants (HKICPA) is yet to announce the implementation date of IFRS 17 in Hong Kong, HKFI conducted a members’ consultation and wrote to HKICPA to express Members’ serious concerns about the practicality of the proposed implementation date of 1 January 2021. HKFI will meet HKICPA shortly and organise two briefings for GI and LI Members in Cantonese and English in 2018 respectively. Registration details will be announced in due course.
InsurTech & RegTech
The FinTech Task Force under the Life Insurance Council met the IA this week. We now have a better understanding of IA’s position on a range of tech-related issues including e-onboarding, cloud computing, etc. The Task Force will continue to work closely with the IA to facilitate application of technology in business and operations to improve market efficiency for the benefit of consumers.
Digitizing motor cover note
The Accident Insurance Association has met the tenderers for evaluation. After conditionally selecting the vendor, a briefing will be held in due course to explain how this e-platform works, its benefits to participating Members and what they need to do to facilitate the implementation of e-cover note, etc.
Christmas Greetings and New Year Wishes
At this festive time, we want to thank you once again for your support and guidance during the year. Wishing you and your family a Merry Christmas and a most Joyous and Prosperous 2018!
● Cigna Worldwide General Insurance Company Limited (General Member) – Mr Chan Yu Man
● Cigna Worldwide Life Insurance Company Limited (Life Member) – Mr Chan Yu Man
HKFI Membership
As at 22 Dec 2017, the HKFI has 87 General Insurance Members and 48 Life Insurance Members.
Membership News
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