IA’s Direct Licensing Regime for Insurance Intermediaries
I nsurance Authority (IA) is conducting three public consultations on its draft guidelines (GLs) on Fit & Proper Criteria, CPD Requirements, Pecuniary Penalties and Maximum Number of Authorized Insurers. Based on input and comments from Members during the earlier stakeholders’ consultations, we are now preparing an industry submission to IA and will send members a copy of it for information.
Meanwhile, we met IA’s Market Conduct Division in early October and agreed to set up different working groups to manage and ensure a seamless handing over of IARB functions to IA next year.
Insurance Fraud Prevention Claims Database (IFPCD)
A townhall briefing will be held on 8 November 2018 for members to understand the onboarding procedures. We will provide an update on the establishment of the IFPCD and explain to you the registration process and requirements, rights and obligations of participating insurers, fees and charges, etc. For registration, please refer to Circular Ref: Mv089/18. You may also contact the IFPCD Project Team at HKFI at 2861 9306 for any specific details of the onboarding arrangement.
We have reviewed the revised draft Company Registration Rules and provided our comments to the Food and Health Bureau (FHB). In essence, we reiterated the importance of defining clearly the respective regulatory oversight among FHB, IA and Insurance Complaints Bureau. We have also provided input on how to streamline the registration rules to ensure efficacy.
On 31 October 2018, the second reading of the VHIS – Inland Revenue (Amendment) (No.4) Bill 2018 was passed by the Legislative Council. FHB will soon circulate the finalized Product Compliance Rules, Company Registration Rules and FAQs to members, to be followed by a townhall scheduled for Mid-November.
Risk-based Capital (RBC) Framework
R BC Task Forces recently invited IA to exchange views on the draft Guideline on Enterprise Risk Management (ERM) and the Second Round of Quantitative Impact Study (QIS 2) for RBC Framework. We have emphasized the importance of proper and timely communication with member insurers each step of the way particularly with regard to the implementation of ERM. We are pleased that the IA will announce the timeline for various projects under RBC and continue to consider all industry’s proposals on QIS 2 for proper moderation in QIS 3.
Life Insurance Members will wish to note that the IA has extended deadline for the voluntary exercise on “Own Assets with Guardrails” (OAG) approach later than the normal deadline of 30 November 2018 for QIS 2 submissions.
On 8 October 2018, we organized a briefing for KPMG to walk through QIS 2 templates with General Insurance Members with a view to facilitating their understanding of the exercise and completion of the relevant templates.
Quality Training @ HKFI
We have formed a Steering Committee chaired by former HKFI Chairman Mr Mike Lee to chart the way forward for HKFI to develop and introduce quality industry training. A Training Unit is also set up within the HKFI Secretariat to launch, promote and administer the future training programmes.
Under the Steering Committee, Expert Panels will be established to build our capacity and capability in delivering quality training to meet the needs of our industry. A “Quality Training @ HKFI” e-bulletin will be published periodically to update members on a series of training programmes on various topics to be rolled out soon, including VHIS, Deferred Annuity, etc. We can partner with your training team to run courses for your agency force or incorporate them into part of your in-house training.
Please contact our Senior Manager Lesley Cheung at 2861 9333 for details.
Issue No.260 Oct 2018
MIDAS – Digitized Motor Cover Note / Policy
We are pleased to report that the above project is progressing well. After the successful completion of two UATs by the Transport Department, we have arranged real customers to try out the brand new blockchain platform at TD’s Licensing Offices (LO). All parties involved including the LO officers found the authentication process smooth and fit for purpose.
Albeit the fact that there is no personally identifiable information stored at MIDAS, we requested a meeting with the Privacy Commissioner for Personal Data and presented to his team our privacy by design proposal to demonstrate our firm commitment to proper protection of data privacy.
We are now inviting members to sign up for MIDAS. A briefing will be held in mid-November to facilitate their participation. The official launch date will be announced soon. Stay tuned!
Improved Practice for ECI – Wageroll Reporting
T he two townhall briefings for insurance companies and brokers held on 16 October 2018 went well. With the support of Member Companies, IA, Confederation of Insurance Brokers and Professional Insurance Brokers Association, we will proceed to implement the “Improved Practice on ECI” on 1 January 2019.
The Improved Practice will require the proper collection of wageroll information and documentary proof from employers. The primary objective is to promote good market practice for accurate and full assessment of the risks involved in providing EC cover for the ultimate benefit of employers and employees. We will liaise with IA and the Labour Department to formulate a suitable public communication plan accordingly.
Hong Kong-Zhuhai-Macao Bridge (HZMB)
The HZMB was officially opened on 24 October 2018. Hong Kong vehicles crossing the HZMB are required to comply with the laws of these jurisdictions. The Accident Insurance Association and its Motor Subcom have worked closely with the IA and our counterparts in Macau and Guangdong to provide timely and necessary information for motorists in need of procuring the required motor insurance in the three jurisdictions. For details, please refer to the HZMB webpage on the website of the HKFI (https://www.hkfi.org.hk/hzmb/index.html).
New LIC Councillor
A Life Insurance Council (LIC) by-election was conducted lately to fill a vacancy. And Mr Yuman Chan from CIGNA Worldwide Life Insurance Company Limited is duly elected as our new LIC Councillor for the remaining term 2018 – 2019 .
Cross-strait, Hong Kong and Macau Insurance Business Conference 2018
T hemed “Developments and opportunities of insurance industry in the Millennials”, the above conference was successfully held in Macau on 25 – 26 October 2018. Over 160 delegates from the four markets participated in this annual event. The participants had a very fruitful exchange on various topical issues such as FinTech application, information security, opportunities brought by the Greater Bay Area and ageing population, etc.
Visitors
We received two delegations from the Mainland in October.
Mr Zhu Jinyuan, President of Insurance Association of China led a delegation to visit HKFI on 29 October 2018. We had fruitful exchange on industry development, training and education, consumer protection, etc.
On 24 October 2018, senior officials from the Bureaux of Financial Affairs of Guangzhou Municipality and Guangzhou Nansha Economic and Technological Development Zone visited the HKFI. They shared with us insights on how to strengthen industry collaboration and mutual co-operation in the Greater Bay Area.
Change of Company Name
● Wing Lung Insurance Company Limited (General Member) to CMB Wing Lung Insurance Company Limited
Change of Authorized Representative
● AIG Insurance Hong Kong Limited (General Member) – Mr. Tomi Latva-Kiskola
has 87 General Insurance Members and 49 Life Insurance Members.
Membership News HKFI Membership As at 31 Oct 2018, the HKFI
