2018/2019 Council Elections
T he General Insurance Council (GIC) and Life Insurance Council (LIC) are conducting elections for the next term. Results will be officially announced at the commencement of the new term on 30 April when the AGM is held.
Insurance Fraud Prevention Claims Database (DB)
We are pleased to report that Member Companies are showing immense interest in the DB. Onboarding meetings are being held with individual insurers and more are scheduled for the weeks to come. When your company is ready to meet the Project Team to better understand the onboarding process, please contact us at 2238 7714 or 2531 1831.
The newly formed Provisional Executive Committee (PEC) will start reviewing the service agreement, Code of Practice, Onboarding Toolkit and operation manual to prepare for the launch of the DB later this year.
Policyholders’ Protection Scheme (PPS)
Direct Licensing Regime for Insurance Intermediaries
T he Insurance Authority (IA) plans to launch an e-portal for the future administration of intermediaries registration – electronic licence applications, notification of changes by licenses, reporting of CPD and renewal of licence for intermediaries.
Two briefing sessions were held on 21 March 2018 with close to 200 representatives from 58 Members participating. A raft of valid questions and serious concerns over the new portal were raised
HKFI is supportive of any initiatives that are environmental friendly and help streamlining the administrative procedures. That said, we are also conscious of the practicality of the portal and whether it facilitates adoption by the endusers, i.e. appointing insurers and insurance intermediaries. As such, we are now collecting views from Members to ensure the portal is fit for purpose (Circular Ref: Mv021/18).
T he GIC and LIC have set up respective Task Forces to look at the issues in greater depth.
The LIC Task Force wrote to the IA and proposed postponing the legislative process for PPS as it would take time to suitably address the 1% levy cap issue and in view of the implementation of the Risk-based Capital Regime. We also registered the industry’s concerns about the proposed Custodian Trust Approach and asked IA to provide further explanations
The GIC Task Force, on the other hand, will ascertain members’ views on other outstanding issues including the accumulation of offshore risk, the definition of SME, etc
International Financial Reporting Standard 17 (IFRS 17) – Insurance Contracts
T he current Task Force expanded its membership and formulated views for the Hong Kong Insurance Implementation Support Group set up by the Hong Kong Institute of Certified Public Accountants. To facilitate better understanding and preparation of General Insurance Members (GIMs), we have invited PwC to conduct a briefing on IFRS 17 in Cantonese on 18 April 2018. GIMs, in particular those with limited actuarial resources, are strongly recommended to sign up for the session (Circular Ref: Mv022/18)
T he Medical Insurance Association (MedIA) is conducting a survey to collect information about high-end products, with special focus on lifetime benefit limit, amount of deductible and tax concession. This is to ensure our future discussion with Food and Health Bureau (FHB) on Flexi Plans is well based and reflects the market norm. Based on the results, we will work out, in collaboration with FHB, the relevant details so that the industry will have sufficient time to design suitable Flexi products and make appropriate migration arrangement for customers (Circular Ref: ME518).
Meanwhile, we are inviting the FHB to conduct another round of townhall meeting to ensure our Members are kept abreast of the latest VHIS framework, regulatory oversight and migration arrangements.
Executive Certificate in Marine Insurance
Tax Concessions for Premiums of Deferred Annuity Products
T he Special Committee set up by the LIC on the above subject held its first meeting with the Financial Services and the Treasury Bureau (FSTB) and the IA on 28 March 2018. After understanding the parameters set out by the Administration, the Special Committee provided professional input from the service providers’ perspective and shared some relevant references from overseas jurisdictions.
We are pleased to note that the Administration is receptive to our advice. The Special Committee will continue to work closely with the FSTB and IA to come up with a practical package of proposals for the good of Hong Kong.
T he Marine Insurance Association launched its first ever professional training programme on 24 March 2018.
This 45-hour programme is unique in more ways than one – it is the first time we partner with HKU SPACE; the relevant subjects are recognized and accredited by ANZIIF; it is endorsed by the Financial Incentive Scheme under FSTB’s Pilot Programme to Enhance Talent Training for the Insurance Sector; each student who is insurance practitioner will be eligible to receive a subsidy of $6,000 from Government. And more importantly, the programme is fully supported and endorsed by the International Union of Marine Insurance (IUMI), the world’s leading marine insurance institution.
To note the special occasion, IUMI President Dieter Berg recorded a video message to welcome 39 students at the kick-off ceremony.
Hong Kong Insurance Awards 2018
T his year, to celebrate the 30th Anniversary of HKFI, we are launching a special edition of the Awards - the Lifetime Achievement Award. We are forming a judging panel of notable community leaders in various fields to help select two most deserved nominees from the general insurance and life insurance sectors respectively. Details will be announced and nominations will open soon in April. Stay tuned for more updates!
Membership News
Change of Authorized Representative
Annual Reception 2018
T he above event will be held on 12 April 2018 at the Hong Kong Club. Due to the change of schedule of our Guest-of-Honour Secretary for Financial Services and the Treasury Mr James Lau, the reception starting time has been advanced to 5:30pm while the official proceeding will begin at 6:00pm. Looking forward to seeing you at this fabulous event!
● AXA General Insurance Hong Kong Limited (General Member) – Mr Martin Rueegg
● Bank of China Group Insurance Company Limited (General Member) – Ms Liu Huijun
● California Insurance Company Limited (General Member) – Mr Clifford Yang
● Munich Reinsurance Company Hong Kong Branch (Life Member) – Mr Lam Yat Tung, Simon
HKFI Membership
As at 29 Mar 2018, the HKFI has 87 General Insurance Members and 48 Life Insurance Members.