New membership
et’s extend a warm welcome to two of our new Life Insurance Members:
● Bowtie Life Insurance Company Limited
● Taiping Reinsurance Company Limited
Focus of Work for 2019
In his note to you dated 21 January 2019, HKFI Chief Executive provided a report on how HKFI prepares for the transition after our SRO functions are handed over to the Insurance Authority (IA). This includes:
i. a Framework of Collaboration with IA which defines clearly how HKFI is going to support IA in fulfilling its missions in the years ahead;
ii. a strategic plan setting out key areas of our work focus for the next 12 months, i.e. handing over of IARB functions to IA; upgrading training on ethics management, compliance and topical industry issues; promoting best market practices; implementing industry-wide projects to improve the market landscape; facilitating healthy growth of the market and research and public education.
Insurance Fraud Prevention Claims Database (IFPCD)
January is a busy month for many and especially so for the IFPCD Project Team. Our work is multifold:
i) onboarding insurers for the first three lines of business, namely, motor, medical and personal accident;
ii) establishing the Executive Committee (ExCom) among participating insurers; and iii) raising public awareness on insurance fraud and how the IFPCD helps protect honest policyholders and their interests.
We are pleased to note that good progress has been made on all fronts. The ExCom will hold the first meeting on 15 February 2019 to replace the existing Provisional ExCom and spearhead the phased implementation of the IFPCD (Circular Ref: Mv008/19). In the coming weeks, we will introduce an online publicity campaign on how policyholders are victimized by insurance fraud. Incidentally, we have also conducted a briefing for Hong Kong Confederation of Insurance Brokers and Professional Insurance Brokers Association to explain to their members how the IFPCD works so they can communicate with their clients accordingly.
IFRS 17
T he Food and Health Bureau (FHB) met medical insurers last week and provided an update on product certification and advice on how to expedite the process. We are working closely with FHB to facilitate product applications to ensure a level playing field for all participating insurers and the provision of sufficient choice of VHIS compliant products for consumers from day one (Circular Ref: Mv010/19).
As VHIS will be launched in less than three months’ time, we are stepping up our efforts in providing relevant compliance training to frontline intermediaries. So far, more than 10,000 intermediaries have signed up for in-house and public class training on VHIS. If your company would also like to train your agents / brokers / staff on VHIS, please contact our Training Unit at 2861 9333.
Incidentally, the IA is consulting us on its draft Guideline on Medical Insurance Business, which will cover all types of medical insurance policies based on the principle of fair treatment of customers (Circular Ref: Mv006/19). The draft guideline will take effect on 1 April 2019 in alignment with the launch of VHIS.
H KFI continues to liaise with the Hong Kong Institute of Certified Public Accountants (HKICPA) on assisting our member companies in getting prepared for the upcoming migration to IFRS 17. With technical support of HKICPA, we are planning to develop prototype models of compliance using employees’ compensation and motor insurance products as examples. We will step up efforts of collaboration with HKICPA to provide the necessary support to insurers before, during and after the transition. Stay tuned for more updates.
Tax Concessions for Qualifying Deferred Annuities Policies (QDAP)
T he relevant enabling legislation was gazetted in early December 2018. The LIC’s Special Committee on Deferred Annuities convened a meeting in mid-January 2019 to discuss the outstanding issues surrounding the certification process, the criteria and the required application documents for QDAP, the template for annual summary and the handling of existing policyholders with a deferred annuity product. Collective feedback has been forwarded to IA.
On public education and communication, with the kind assistance of the Hon K P Chan, we held a meeting with Financial Services and the Treasury Bureau, IA, Mandatory Provident Fund Schemes Authority and the Investor and Financial Education Council to align the key messages on QDAP and MPF tax deductible voluntary contributions and better coordinate the education efforts among the parties concerned. For intermediary compliance training, HKFI’s Training Unit has already developed a CPD curriculum. Please contact Ms Lesley Cheung at 2861 9333 for information.
Hong Kong Insurance Market Research 2018
We commissioned Nielsen to conduct the second industrywide market research in Hong Kong and Mainland markets to gauge general public’s perception of the insurance industry. A briefing was held on 30 January 2019 to share the noteworthy findings which may help Members map out future business development strategies. The session was well attended by 120 representatives from 54 Member Companies.
More detailed analytics are available for Members’ subscription. Please contact Ms Yuki Ma at 2861 9318 if you are interested in subscribing for more research findings.
Multidisciplinary Orthopaedics Rehabilitation Empowerment (MORE) Programme 2.0
T he MORE program was launched in conjunction with the Department of Orthopaedics and Traumatology of The Chinese University of Hong Kong in 2011. Over the years, more than 520 cases have gone through the MORE programme. The results showed that early rehabilitation management could facilitate early return to work for the benefit of injured workers and their families.
To make the programme impactful and sustainable, the General Insurance Council has endorsed in principle to scale it up to MORE 2.0. This new service model will integrate education, service and research to change and improve the way we manage workrelated injuries in Hong Kong.
Green Power Hike HKFI Cup 2019
T he annual fund-raising walkathon Green Power Hike was successfully held on 12 January 2019. The HKFI Cup has been held for 15 consecutive years and we have 35 teams from the insurance industry joining this year.
Congratulations to Manulife (International) Limited, FWD Life Insurance Company (Bermuda) Limited and The Tokio Marine and Fire Insurance Insurance Company (Hong Kong) Limited on winning the 50km, 25km and 10km races respectively. With the generous support from participating companies, the industry raised a total of HK$435,200 in 2019 to help fund projects on environmental education.
Membership News
Change of Authorized Representative
● Assicurazioni Generali S.p.A (General & Life Member) – Mr. David Fontaine
● MSIG Insurance (Hong Kong) Limited (General Member) – Mr. Philip Kent
● Standard Life (Asia) Limited (Life Member) – Mr. Sean Deehan
● Swiss Re International SE, Hong Kong Branch (General Member) – Mr. Sandeep Gopal
HKFI Membership
As at 31 Jan 2019, the HKFI has 86 General Insurance Members and 50 Life Insurance Members.
Chinese New Year Greetings
We wish you all a Healthy and Prosperous Year of the Pig!