2018 Extraordinary General Meeting (EGM) & Christmas Cocktail Party
T he EGM will be held at 5:30 pm on Monday, 17 December 2018 at Club Lusitano to consider and approve the subscription fee scales for 2019 (Circular Ref: Mv106/18). This will be followed by our traditional Christmas Cocktail Party. We look forward to seeing you all there.
Insurance Fraud Prevention Claims Database (IFPCD)
On 8 November 2018, we conducted a townhall briefing for about 200 representatives from 65 companies with the presence of senior executives from the Insurance Authority (IA). The onboarding has started. So far, 30 insurance companies have confirmed their intent to join the IFPCD.
With effect from 1 December 2018, participating insurers so ready can start uploading their claims data onto the IFPCD; see media release (https:// www.hkfi.org.hk/#!/media-corner/media-release)
Please contact our Project Team at 2861 9392 or claimsDB@hkfi.org.hk for onboarding details.
This project aims to protect the interest of honest policyholders. We thank all stakeholders in particular the IA for their support from day one.
IA’s Direct Licensing Regime
We have been busy reviewing and commenting on a raft of draft guidelines (GL) and rules issued by IA. Earlier this month, we have submitted a position paper relating to the draft GLs on fit and proper Criteria and CPD for intermediaries. In essence, we are pleased to note that IA has positively taken into account some of our comments and recommendations, e.g., increasing CPD hours and mandating core CPD subjects. That said, there remain certain outstanding concerns over the entry requirements.
Currently, we are preparing position papers on GL on pecuniary penalties for licensed insurance intermediaries and the Draft Insurance (Maximum Number of Authorized Insurers) Rules. These are issues of significance to your operations in the future. Please send us your comments before the consultation deadline (Circular Ref:Mv092/18).
Action is in hand to transfer our SRO functions to IA next year. And we have set up working groups with IA to work out a detailed implementation plan to ensure a seamless and smooth transition. Topics like setting a cut-off date for receiving complaints and agents’ registration, transfer of physical files and computer records, handling CPD reporting for 2018 assessment, etc. are being discussed. All these would involve a huge amount of administrative and communication work beforehand. As such, we have requested IA to provide a reasonable buffer of six months to allow sufficient time for an orderly handover. The latest response of IA, we are pleased to report, is positive.
Quality Training @ HKFI
F rom the first issue of “Quality Training @ HKFI” e-Bulletin (Circular Ref:Mv107/18) , you can see the curriculums we have developed to help you prepare for imminent changes in our regulatory landscape, i.e. ethics management, regulatory training relating to Direct Licensing, data privacy, prevention of corruption and fraud. We will also be providing courses on hot topics like VHIS, deferred annuity and voluntary contribution for MPF Schemes.
Several Members have approached us individually to organize tailor-made training programmes for their agents / salaried staff on these subjects. If you also want to know more what we can do for you, please contact us at training@hkfi.org.hk or call our Senior Manager Ms Lesley Cheung at 2861 9333.
T he Food and Health Bureau (FHB) has released the updated version of VHIS Documents on its official website. We have also circulated the relevant documents to Members (Circular Ref: Mv103/18). Insurers can apply to be VHIS Provider with effect from 1 December 2018.
We are in close dialogue with FHB on VHIS data collection. Our key objective is to ensure the data requirement is reasonable, manageable and fit for purpose. We will keep you updated on the discussion outcome and public communication plan accordingly.
International Financial Reporting Standard 17 – Insurance Contracts (IFRS 17)
We wrote to Mr Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), requesting a postponement of the implementation of IFRS 17 for two years to 1 January 2023. The IASB subsequently decided on 14 November 2018 to delay the implementation by one year to 1 January 2022.
We welcome IASB’s decision as a step in the right direction. However, we remain very concerned about the implementation challenge under the revised timeline. On this we will continue to work with IA and related stakeholders to reach a common view on the proper way forward. Meanwhile, we will continue our efforts to provide assistance to our members in particular the SMEs in getting prepared for the required changes.
Financial Education Champion Award
