Greetings from HKFI Chairman
I n my first monthly brief, I would like first of all to thank you for your great support over the years. The next 12 months will be full of challenges as we enter the new regulatory era. With your continued support and guidance, I am confident of a smooth transition to the new IA regime and HKFI’s ability to provide quality service to its membership in the years ahead.
Praveen M Daswani HKFI Chairman
Commencement Day, Cut-off Date of 26 August 2019 for Agents Registration
A s you know, the Insurance Authority (IA) will take over from the three Self-regulatory Organizations (SROs) and commence the direct licensing regime (DLR) with effect from Monday, 23 September 2019. In our latest circular, you were informed of the action plan we initiated early this year in preparation for the transition. Things are progressing well and we are grateful for the ready support of the IA.
To ensure all registration / renewal applications will be completed before the commencement of the DLR, we have set 26 August 2019 as the cut-off date for receiving registration applications and accepting online renewal services. This was announced to all appointing insurers and their agencies / agents on 24 May 2019 (Circular Ref: A2-002/02-J78605). For those who wish to complete their registration / renewal before the DLR kicks in, they must make sure their applications are received by the IARB on or before 26 August 2019.
IFRS 17
A post-launch meeting was held between VHIS Office and HKFI in mid-May to review the implementation progress of VHIS and finalize the data reporting logistics. To facilitate reporting by insurers, a technical meeting was held on 31 May 2019 to review and refine the reporting templates. Where necessary, we will invite VHIS Office to conduct a workshop in late June 2019 to explain to the parties concerned further details of the data reporting exercise.
Private Health Insurance
We are intensifying our efforts to assist members in getting better prepared for the new reporting standards. The IA and the Hong Kong Institute of Certified Public Accountants will participate in our upcoming 6th Monthly Forum to provide an update on ways to tackle the IFRS 17 implementation challenges. We will have consultants joining the Forum to demonstrate solutions tailor-made to help address the envisaged issues. (Circular Ref: Mv052/19).
The Consumer Council released a study entitled “Creating Sustainable Value for Private Health Insurance Market in Hong Kong” and made 14 recommendations.
We welcomed the Council’s suggestions on enhancing transparency, promoting good market practices and strengthening public and intermediary education. In areas like standardization of policy terms and conditions, improving the format and contents of application forms and enhancing public and intermediary education, the industry in fact has done substantial work and made considerable progress. We are reviewing the other recommendations and will consider the feasibility and timing of implementing necessary changes for the benefit of consumers.
Investment-Linked Assurance Scheme (ILAS)
E arlier this year, we presented to the IA some ideas as to how to reform ILAS products for the benefit of customers. In this term, the ILAS Working Group under Life Insurance Council will be focusing their efforts on educating the public about the value propositions of ILAS for protection and investment return and proper training of agents. In addition, we will encourage product innovation in the market to meet the varying needs of consumers.
Formation of Task Forces, Working Groups and Special Committees
T he majority of our technical work is supported by various task forces and working groups set up under the Governing Committee, Life Insurance Council, and General Insurance Council. Lately we have written to all members, inviting nominations to join these bodies to contribute ideas and expertise (Circular Ref: Mv051/19). The objective is to further enhance the transparency of our work and encourage more of you to volunteer your time in support of the various ongoing and new initiatives of the Federation.
The Hong Kong Insurance Awards 2019
We are delighted to launch the Hong Kong Insurance Awards 2019 with our partner South China Morning Post (SCMP). Send in your applications before the submission deadline on 31 July 2019!
This year, we have teamed up with the Equal Opportunities Commission, Investor and Financial Education Council and Cyberport to jointly roll out three new categories on Equal Opportunity Employers, Financial Education and Digital Transformation respectively.
Details are available on our official website at www.hkfi.org.hk/hkia . For enquiries, please contact Ms Zelma Cheung of SCMP at 2565 2494 / 6100 7273 or Ms Maggie Leung of HKFI at 2861 9332.
Visitors
Time for Celebrations
On 1 April 2019, two tax concession insurance products –VHIS and Qualifying Deferred Annuity Policy (QDAP) – were launched. It is the first time tax concession is offered to personal line of insurance products in Hong Kong. Both projects required professional input from the industry and support of the Administration / respective regulators. This is a classic example of Public Private Partnership (PPP) with a common objective of meeting the needs of the public.
Here we want to express once again our industry’s heartfelt appreciation of the clear and firm policy and technical support provided by the IA, Financial Services and the Treasury Bureau, and Food and Health Bureau each step of the way. To celebrate and mark this collaborative PPP effort, we invited all parties involved to a drinks gathering on 27 May 2019.
IUMI Asia Forum
In our capacity as the secretariat of the International Union of Marine Insurance (IUMI) Asia Hub, HKFI supported the Shanghai Institute of Marine Insurance in organizing the second IUMI Asia Forum in Shanghai, which was well attended by over 260 marine insurance practitioners on 22-23 May. Going forward, we will continue to help strengthen IUMI’s presence in the region.
On route to Shanghai, the President and the General Secretary of IUMI visited Hong Kong and we arranged for them to meet the Secretary for Transport and Housing, Under-Secretary of Financial Services and the Treasury, CEO of the IA and the Director of HK Ship Owners Association. They had fruitful discussions on further collaboration between Hong Kong and IUMI in talent development and strengthening the marine insurance industry in support of the Greater Bay Area Development and Belt and Road Initiatives.
W e received two delegations from the Mainland in May – the Guangdong Insurance Association and the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen. We had fruitful exchange with our visitors on a raft of topics of mutual interest and explored ways of future cooperation, in particular on the development of insurance market in the Greater Bay Area.
● The People's Insurance Company of China (Hong Kong), Ltd. (General Member) – Ms Fang Fang
● Well Link General Insurance Company Limited (General Member) – Mr Chan Tsung Sing Billy
As at 31 May 2019, the HKFI has 86 General Insurance Members and 51 Life Insurance Members.
