IA’s Direct Licensing Regime
We have been busy reviewing and providing comments to the Insurance Authority (IA) on a raft of draft guidelines and codes, including the Explanatory Note on Licensing Requirements for Employees of Authorized Insurers and Consultation Paper on Guideline on Exercising Power to Impose Pecuniary Penalty in Respect of Regulated Persons
Published Under Section 83(1) of the Insurance Ordinance (Cap. 41).
It is most worrying to note that intermediaries subject to disciplinary action may not be given the chance of an oral hearing. This is one of the major concerns raised by the industry during the bill drafting stage and we will continue engaging our regulator to ensure procedural fairness is maintained under the new regime.
We helped the Food and Health Bureau (FHB) organize two Technical Workshops in September. Both were well attended and close to 270 participating member insurers gained a better understanding of the relevant product design and policy administration. We will consider holding another around of workshops if necessary.
The finalized version of the VHIS Certified Plan Policy Template and Code of Practice for Insurance Companies under the Ambit of the VHIS have been published. We are very concerned about the implementation of the proposed compliance rules. Firstly, it is important to ensure they are not excessive. Secondly, it is more sensible for this to be administrated by the Insurance Authority as the industry’s lead regulator.
Insurance Fraud Prevention Claims Database (DB)
T he project is making good progress. Under the guidance of the Steering Committee, we have finalized the DB framework and implementation plan. And we are now working on details of the onboarding arrangements.
Specifically, the Provisional Executive Committee has agreed to reduce the original onboarding charges by half and offer waiver for the first line of business for insurers signing up before Q1 2019. We are arranging a Townhall meeting in October and, at the same time, start onboarding meetings with insurers. Please contact the DB Project Team at HKFI at 2861 9306 to set up onboarding meeting for your company.
Digitizing Motor Cover Note / Policy –
Motor Insurance DLT-based Authentication System (MIDAS)
With the great support from the Transport and Housing Bureau and Transport Department, the user acceptance test (UAT) was conducted at the four Licensing Offices. Meanwhile, we also met with Commercial Crime Bureau, Traffic Unit of Hong Kong Police and IA to discuss the way forward. Watch this space for more updates on this first-ever industrywide blockchain solution!
Setting up of the HKFI Training Unit
A t the meeting held on 26 September 2018, the Governing Committee resolved to set up a Training Unit within the HKFI Secretariat. Under the supervision of a taskforce chaired by Mr Mike Lee, this special unit will proceed to plan for the launching of a series of industry-wide training on Ethics Management, VHIS, Deferred Annuity and related governance and compliance issues. General Insurance (GI) and Life Insurance (LI) expert panels will be set up to provide professional input on different topics to meet the training need of insurance intermediaries and practitioners.
IFRS 17
Risk-based Capital Framework
I n collaboration with HKFI, the Actuarial Society of Hong Kong conducted a briefing on 11 September for Chief Actuaries of Life Insurance Members (LIM) on the testing of “Own Assets with Guardrails” approach (“OAG”), a topdown discount rate approach in the Second Quantitative Impact Study (QIS 2). LIMs were invited to participate in a voluntary exercise to provide submissions to the IA together with QIS 2 data.
General Insurance Council and Life Insurance Council will continue to work closely with the IA to secure a proper way forward regarding QIS 2 and Pillar 2 Guideline on Enterprise Risk Management.
E arlier on we organized three HKFI Monthly Forums on IFRS 17 for GI insurers and reinsurers respectively. Two more have been scheduled for late October and late November 2018. Stay tuned for more details!
With the help of industry’s surveys and consultancy findings, we are trying to identify and highlight the key challenges faced by insurers. We will continue to liaise with IA and Hong Kong Institute of Certified Public Accountants on the proper way forward.
Hong Kong Industry Market Research
L ast year, we engaged Nielsen to conduct our first ever market research which was very well received by Members. The second round of research is now being conducted, which includes hot topics of the year, e.g. medical insurance. Apart from Hong Kong residents, the research will cover additional Mainland cities in the Greater Bay Area such as Shenzhen, Foshan and Dongguan. The research findings are expected to be ready by Q4 2018 hopefully in time for members’ marketing plans for next year.
Membership News
Change of Authorized Representative
Marine Insurance
International Union of Marine Insurance (IUMI) Annual Conference was held in Cape Town, South Africa last week. Under the theme “Managing emerging risks and exposures – think the unthinkable”, more than 500 delegates, including five from HKFI, had a fruitful exchange on how to deal with the new risks, creating value through digitalization, etc.
HKFI delegation met with IUMI new President Richard Turner and briefed him on the milestones and achievements of Hong Kong as the IUMI Asia Hub and the way forward. It was a good meeting and we raised the idea of appointing an IUMI Asia Hub Ambassador to promote IUMI in Asia.
● California Insurance Company Limited (General Member) – Mr Kwan Yiu Keung Ronald
HKFI Membership
As at 28 Sep 2018, the HKFI has 87 General Insurance Members and 49 Life Insurance
HKFI 30
The HKFI 30 Symposium and Gala Dinner cum Lifetime Achievement Award Presentation were successfully held on 28 August 2018!
Thanks to your support, more than 180 participants attended the Symposium in the afternoon with the HKSAR Financial Secretary the Hon Paul Chan as the Keynote Speaker. In the evening, we had over 430 guests joining the Gala Dinner with the HKSAR Chief Executive the Hon Mrs Carrie Lam as the Principal Guest-of-honour who kindly presented the Lifetime Achievement Awards to Mr William Woo and Mr Alwin Lam in recognition of their distinguished contributions to the industry over the years.
Our new corporate logo was also launched that evening to symbolize our embarkment on a new and exciting journey. For details, please visit https://www.hkfi.org.hk/hkfi30/hkfi30_logo.html .
More highlights of the joyous moments at the Symposium, Cocktail and Gala Dinner can be found at our websites. We look forward to your continued support in the next 30 years and beyond!