Regulation of Insurance Agents
S tepping into the second half of 2018, we at the HKFI are working closely with the Insurance Authority (IA) to ensure a smooth transition of the SRO regime into the direct licensing and supervision framework. Particularly, we are most concerned about proper arrangements for handing over to IA cases being investigated by the Insurance Agents Registration Board (IARB) a year from now. In this connection, we have engaged IA’s Market Conduct Executive Director Mr Stephen Po for more in-depth discussion.
Incidentally, we have completed a Members’ consultation on conduct requirement under the future Direct Licensing Regime. All in all, Members are concerned about the lack of clarity regarding the respective roles and obligations of insurance agents and brokers and require clearer definitions / illustrative examples on the conduct requirements. We will continue a constructive dialogue with IA to work out a proper way forward.
Continuing Professional Development (CPD)
I n mid-May all registered persons (RPs) received an SMS from IARB reminding them to complete the outstanding CPD hours. They will receive an email with updated CPD records again in July alerting them that this year’s assessment period will end on 31 July 2018. RPs who fail to compile with the CPD requirement will be subject to “deregistration for 3 months” as a starting point.
The IARB takes CPD compliance seriously and conducts random checks to verify compliance. For the 2017 assessment year, 38 RPs are disciplined due to non-compliance found in the random check and were deregistered for 1 year.
Ethics Management Training
I n its latest proposal, IA has identified ethics management / regulation as core CPD subject under their Direct Licensing Regime. These new changes are very much in line with HKFI’s Vision 2028 and the Ethics Management Training Programme we are currently developing in conjunction with the Hong Kong Securities and Investment Institute. Watch this space and look out for updates in our e-newsletter.
In July we will be launching this CPD programme on a trial basis. If your RPs are interested, please sign up at https://event.hkfi.org.hk/event or send enquiries to training@hkfi.org.hk (Circular ref: Mv047/18).
Insurance Fraud Prevention Claims Database (DB)
A t the follow-up meeting with the Food and Health Bureau (FHB), we focused on the technical details of VHIS, in particular those relating to Flexi Plan arrangements, migration and policy ownership. To facilitate FHB’s consideration, we presented to them the results of our market practice survey for reference. Response of the FHB has been positive. The revised Standard Terms & Conditions, Code of Practice, product compliance manual and company registration rules will soon be circulated to Members for comments.
We have invited the FHB to conduct a townhall to update Member Companies on the latest proposed framework, working timeline, tax deduction arrangement, etc.
We are most encouraged by the progress made in the past month – the Privacy by Design Proposal was carefully reviewed and unanimously endorsed by the Steering Committee. We will present our proposal officially to the Privacy Commissioner in July.
At the same time, the Provisional Executive Committee (PEC) has reviewed the draft Code of Practice and Participation Agreement. Taking into account their comments, the Project Team has modified the two drafts, which were adopted by the PEC at the meeting held earlier this week.
Going forward, we will start inviting Members to subscribe for the DB. The search functions for motor insurance will be available in early 2019, to be followed by medical and personal accident insurance. More lines of business will be launched by phases thereafter. Please contact our Project Team at 2238 7714 or 2531 1831 to set up the onboarding meetings now.
Risk-based Capital
We are in close communication with the IA on the industry views regarding the second round of Quantitative Impact Study. In particular, Life Insurance Members will be consulted through a quick survey on their views on Time Value of Options and Guarantees.
To facilitate better understanding of Pillar 2 of RBC Framework, we invited KPMG to conduct a supplementary training session on 3 July 2018 to take us through the Draft Guideline on Enterprise Risk Management and its possible impact on General Insurance Members (Circular ref: Mv046/18).
Consultation on Periodic Payment for Future Pecuniary Loss in Personal Injury Cases
T he captioned consultation proposed by the Law Reform Commission was considered by the Legco’s Panel on Administration of Justice and Legal Services on 25 June 2018. The GIC has set up a Task Force to look into this proposal which has far-reaching impact on our industry. The Hon K P Chan presented our grave concerns to the Panel and suggested conducting a careful study of possible alternatives.
With the assistance from the IA, we will meet the Chairman of the relevant Subcom of the Law Reform Commission in early July to voice our concerns and recommend a proper way forward.
TVB Programme - “Accidents Do Happen”
T o coincide with HKFI 30, we are sponsoring an infotainment series produced by TVB Jade, “Accidents Do Happen”. This brand new 30-minute series of 8 episodes will cover various types of accidents which we may encounter in our daily lives and provide tips on how to manage and mitigate such risks. Our title sponsorship will provide a subtle reminder of what insurance can do to help in such scenarios (Circular ref: Mv048/18)
Watch the programme at 20:00 every Saturday between 30 June and 18 August 2018 at TVB Jade! Related clips and promos will also be available at BigBigChannel.
Delegation to Shenzhen on InsurTech
T o better understand the cutting-edge solutions being used in the Mainland and how they could be applied to facilitate InsurTech development in the Hong Kong context, we organized a visit to Ping An Technology and Tencent on 7 June 2018. We, 23 members from the Federation and two representatives from IA, found the trip fruitful and inspiring.
A post-event survey was conducted to ascertain the need of insurers from company and industry perspectives. Based on their feedback, the two InsurTech Task Forces under the GIC and LIC will discuss the way forward.
Digitizing Motor Cover Note / Policy – Motor Insurance DLT-based Authentication System (MIDAS)
We are pleased to report that with the staunch support of Members and their agencies, the development of MIDAS is progressing as planned. Upon completion of the platform development, we will proceed with the UAT with key stakeholders in July. More details will be made available when MIDAS is ready to go live. Stay tuned!
T hanks to the hard work of our esteemed judges, winners of the Lifetime Achievement Awards for the General Insurance and Life Insurance have been duly selected. The award presentation will be held in conjunction with the “HKFI 30” Gala Dinner on 28 August with the Chief Executive of HKSAR the Honourable Mrs Carrie Lam as the Principal Guest-of-Honor.
More surprises and exciting programmes are being lined up at the event. Don’t miss out on the chance to be party to this historic moment. Book your tables now at https://www.hkfi.org. hk/hkia/book.html to enjoy the early bird discount!
Membership News
HKFI Membership
As at 29 Jun 2018, the HKFI has 87 General Insurance Members and 49 Life Insurance Members.
