Direct Licensing Regime of the Insurance Authority (IA)
We submitted a comprehensive list of probable scenarios of regulated activities conducted by salaried staff to the IA in 2016 and suggested for their consideration in September 2017 a draft back office vs front office regulatory framework.
Right before the Chinese New Year, the IA produced a set of FAQs with illustrative examples to help clarify the legislative intent of the licensing regime and try to address concerns raised by Member Insurers. The GIC and LIC are reviewing the document and will share our initial observations with the IA. Upon receipt of further input from the IA, we will conduct a full Members’ consultation.
Insurance Fraud Prevention Claims Database (DB)
W ith the Steering Committee officially in place to oversee the development and governance of the DB, the Project Team is now preparing for the launch of the DB in full swing. Currently, a set of agreement, Code of Practice and operation manual are being prepared for Members’ onboarding. We will conduct a Members’ briefing in due course to bring you up to date on the way forward. Meanwhile, if you have questions about the DB, please contact the Project Team at 2238 7714 or 2531 1831.
At its last meeting held on 27 February 2018, the GC resolved to set up a Provisional Executive Committee (PEC) under the chairmanship of Mr Harry Wong to maintain the project momentum and ensure a smooth launching of the DB in Q3 2018.
Tax Incentives for Long Term Products
I n his budget speech for 2018/19, the Financial Secretary (FS) introduced new tax incentives for annuity products and MPF voluntary contribution.
We are pleased to note that the FS has taken into account the recommendations we have made in September 2017 on tax relief. We welcome the introduction of such tax incentives and believe that they will help raise public awareness of the role and function of annuity and attract higher take up rate. The tax allowance for MPF voluntary contribution will incentivize our working population to top up their MPF account for retirement purposes and make good use of this occupational retirement savings vehicle.
Going forward, we will set up a special committee to provide all the necessary professional input and expert advice to help the IA and Financial Services and the Treasury Bureau to work out an appropriate tax incentive scheme for the good of the HK community.
The FS also proposed to provide tax incentive for VHIS products. We welcome this policy decision by the Government and hope that it will help encourage more Hong Kong people particularly wage earners in their 20’s and 30’s to take out VHIS early for life time protection against unexpected medical bills.
To prepare for the launch of VHIS on 1 April 2019, we have recently met the Food and Health Bureau (FHB) to discuss the outstanding issues, e.g. the respective regulatory roles of FHB and IA, implementation timeline, migration arrangement, communication plan, public education, etc.
On regulation we understand that FHB will liaise with IA to work out a proper framework for handling consumers’ complaints. Going forward, we will invite FHB officials to come and brief Members on the latest VHIS framework, the standard Terms and Conditions and the related Code of Practice. On the last item we will invite IA officials to join the briefing session to ensure everyone is on the same page.
Cross-boundary Motor Insurance Arrangement in relation to the future Hong Kong-ZhuhaiMacau Bridge (HZMB)
A ccording to the news reports, the HZMB will be opened in mid-2018. To ensure drivers and car owners understand their legal obligations and facilitate their procurement of the relevant motor insurance in the three jurisdictions, the HKFI has been working closely with the IA in the past few months. A HZMB corner will be set up at HKFI website to provide information on legal requirements, list of insurance providers and claims procedures.
Tai Po Bus CrashWe were deeply saddened by the tragic accident which took away 19 precious lives and left more than 60 injured. Knowing that some of the victims might have taken out personal insurance and require assistance on their policies / claims, we have thus set up a hotline to help answer insurance-related enquiries and verify whether the victims have any kind of personal insurance. KMB and Office of the Chief Executive of HKSAR kindly helped pass on the hotline information to those in need
The Hong Kong Insurance Awards 2018
The Hong Kong Insurance Awards has become a signature event in the industry since its first launch in 2014. To mark the 30th Anniversary of HKFI, we are rolling out a special edition of the Awards this year. The Lifetime Achievement Award will be introduced to recognise the outstanding industry members who have made substantial achievements and impactful contributions to the insurance industry in Hong Kong.
An Award Presentation will be held in conjunction with the HKFI’s 30th Anniversary Celebration Dinner on 28 August 2018 with Chief Executive of HKSAR the Honourable Mrs Carrie Lam as the Principal Guest-of-Honour. Please pencil in this important date and stay tuned for more updates!
Membership News
Change of Authorized Representative
Hong Kong Insurance Market Research 2017
HKFI has commissioned Nielsen to conduct an industrywide market research in Hong Kong and Mainland markets to gauge general public’s perception of the insurance industry. Some of the findings are quite interesting and may help Members map out future business strategies. As such, a briefing was held last week to share with Members the noteworthy findings and highlight some food for thought.
Annual Reception 2018
T he Annual Reception this year will be held on 12 April 2018 at the Hong Kong Club. We are pleased to have Secretary for Financial Services and the Treasury Mr James Lau as our Guest-of-Honour. We look forward to catching up with you and other friends from across the industry at the reception!
Green Power Hike HKFI Cup 2018
T he annual fund-raising walkathon Green Power Hike was successfully completed on 3 February 2018. The HKFI Cup has been held for 14 consecutive years and we had 31 teams from the insurance industry joining this year.
Congratulations to Manulife on winning both 50 km race and the 25 km race and Bank of China Group Insurance Co., Ltd. the 10 km race. With the generous support from participating companies, the industry raised more than HK$370,000 this year to help funding projects on environmental education.
● Allianz Global Corporate & Specialty SE (General Member) – Mr Patrick Zeng
● Bupa (Asia) Limited (General Member) – Mr Angus Slater
● Min Xin Insurance Company Limited (General Member) – Mr Wu Xu Bin
● QBE Mortgage Insurance (Asia) Limited (General Member) – Ms Wendy Tsang
HKFI Membership
As at 28 Feb 2018, the HKFI has 87 General Insurance Members and 48 Life Insurance Members.