2019 General Meeting (GM)
The GM held on 25 November 2019 unanimously approved the new Articles of Association and maintaining the membership subscription fees for 2020 at the 2016 level.
LIC By-election
The Life Insurance Council (LIC) is now conducting a by-election to fill the two vacancies arising from the resignation of Ms Charity Au and Mr Godfrey Hui (Circular Ref: Mv125/19).
We would like to thank Ms Au and Mr Hui for their invaluable contribution to the LIC in the past years. We wish them a happy retirement!
Upgrading of HKFI premises
To cope with the future development of HKFI and to support our training needs, we are now expanding the conference room and upgrading its facilities. The renovation is expected to complete in mid-January 2020. We will then host the postponed Celebratory Drinks Party at our newly refurbished conference room.
Registration process under the Direct Licensing Regime
It has come to our attention that the European Financial Reporting Advisory Group has proposed to further defer the adoption date of IFRS 17 to 2023 while Hong Kong is planning to implement IFRS 17 on 1 January 2021.
This will render Hong Kong operating to an implementation timetable not consistent with the other international insurance centres and faced with all the possible downsides. In the light of such an international development and the fact that our Member Companies found the current timeline exceedingly challenging, we have written to the Hong Kong Institute of Certified Public Accountants (HKICPA) again urging them to consider postponing the effective date of IFRS 17 for Hong Kong insurers to 1 January 2023.
Guideline on Medical Insurance Business (GL31)
GL31 has been finalized and gazetted by IA in late November (Circular Ref: Mv121/19). We have received quite a number of questions from Members on its application to group medical insurance and how IA assesses the compliance standard of insurers. These questions will be addressed by the IA through a set of FAQ. To facilitate Members’ understanding on GL 31 and prep them for its implementation on 23 September 2020, we will invite the IA to conduct a townhall in due course.
The industry expressed concerns over the registration process of insurance intermediaries under IA’s Direct Licensing Regime. In order to better understand the crux of the issue and find viable resolutions, we have set up a meeting with IA’s Market Conduct team in early December. At the same time, we help alleviate IA’s work burden by providing registered insurance agents with their registration / disciplinary records before 22 September 2019. Such service will be available until 30 April 2020 (Circular Ref: Mv122/19).
Townhalls on Life Insurance Guidelines (GLs)
On 19 and 20 November 2019, the LIC held three townhalls on the 6 life insurance GLs. Senior officials from IA were invited to present the principals and major changes of the GLs and addressed the discussion points raised by the Special Committees (SCs) set up under the LIC. A total of 220 Life Insurance Member's (LIM) representatives attended the sessions and raised valid concerns and questions.
Moving forward, the SCs will continue to work with IA on the drafting of the Interpretation Notes. Meanwhile, please note that IA has released the Chinese version of the Important Facts Statement attached to GL26 (ILAS).
Insurance Fraud Prevention Claims Database (IFPCD) – Cyber Security Audit and Assessment
We attach great importance to the security of the IFPCD in line with the expectation of participating insurers, regulators and the public. In this light, the IFPCD Executive Committee has engaged Deloitte to conduct a comprehensive Cyber Security Audit and Assessment in Q1 & Q4 2020.
The onboarding of IFPCD travel line of business has started. Please contact the Project Team at claimsDB@hkfi.org.hk or 2861 9392 for details.
November
has been action-packed for Marine Insurance Association (MIA) and HKFI as IUMI Asia Hub.
In early November, the IUMI Asia Hub Team, together with Mr Lars Lange, General Secretary of International Union of Marine Insurance (IUMI), visited General Insurance Association of Malaysia to discuss the organization of the IUMI Asian Forum 2020 in Kuala Lumpur.
The constructive dialogue continued in Hong Kong when we met IA CEO Mr Clement Cheung, Deputy Secretary for Financial Services and the Treasury Mr Aaron Liu and the MIA on 8 November 2019. Views were exchanged on further collaboration between Hong Kong and IUMI in talent development and strengthening Hong Kong’s role as IUMI Asia Hub. With the growing presence and importance of P&I Clubs in Hong Kong, the MIA has organized a seminar entitled “Navigate through the rough sea” on 21 November 2019 to coincide with the 4th Hong Kong Maritime Week. Heavyweight speakers included Mr Nick Shaw, CEO of International Group of P&I Clubs, and other leading figures of P&I Clubs were present to discuss the future trends and challenges of the market.
HKFI awarded the Financial Education Champion (FEC) Award
For the second consecutive year, the HKFI received the Financial Education Champion award from the Investor Financial Education Centre (IFEC) for our stellar achievement in developing quality financial education for the Hong Kong public.
The award is due recognition of HKFI’s ongoing efforts in enhancing public education on insurance, including the “All you need to know about insurance” book series. We will continue our good work through diversified channels.
Hong Kong Industry Market Research 2019
Our consultant Nielsen will begin the survey fieldwork in the coming weeks. The research framework and pre-subscription details have been circulated to Members (Circular Ref: Mv127/19). Please contact Ms Yuki Ma at 2861 9318 if you are interested in subscribing for more indepth research findings.
Membership News
Change of Authorized Representative
Cross-strait, Hong Kong and Macau Insurance Business Conference 2019
Themed “InsurTech”, the above conference was successfully held in Beijing on 27 – 28 November 2019. 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 application and development of blockchain, AI, big data and other InsurTech.
Taking the opportunity, we made a courtesy call to Mr Tian Lei, Director of the International Cooperation & Foreign Institution Supervision Department (Office of Hong Kong, Macau & Taiwan Affairs) of China
Banking and Insurance Regulatory Commission. Views were exchanged on the GBA initiatives and how to strengthen mutual communications for facilitating market development.
● BOC Group Life Assurance Company Limited (Life Member) – Mr Tsui Chi Kin Ellick
● China Life Insurance (Overseas) Company Limited (Life Member) – Mr Lam Man Ching
● RGA Reinsurance Company (Life Member) – Ms Carmony Wong
● Starr International Insurance (Asia) Limited (General Member) – Mr Gregory Dodds HKFI Memebership
As at 29 November 2019, the HKFI has 86 General Insurance Members and 51 Life Insurance Members.