Registration Process under Direct Licensing Regime
We met Insurance Authority’s (IA) Market Conduct Division on 11 December 2019 to discuss industry’s concerns over their services relating to insurance agents registration and make suggestions to improve and streamline the registration process.
We are pleased to note that substantial progress has been made since the meeting was held and over 80% of applications have been approved. Going forward, we encourage more insurance companies to use IA’s registration portal and will provide the necessary facilitation to Members and their agencies (Circular Ref: Mv132/19).
On the other hand, we will continue to provide registered insurance agents with their registration / disciplinary records before 22 September 2019. Please send in your request on or before 30 April 2020 (Circular Ref: Mv122/19).
Insurance Complaints Bureau –New Funding Model
The industry consultation conducted in early October 2019 showed great support from ICB Member Companies to the proposed new funding mode. And the special resolution was passed at its General Meeting held on 9 December 2019 to introduce the new fee structure, i.e. in addition to the base annual membership subscription, an additional “case fee” will be collected on a user-pays principle (Circular Ref: BUD-V32009).
The new funding model, which is fair and equitable, is very much in line with the overseas practices. Most importantly, it enables the ICB to maintain its free services to the complainants.
Moving forward, regular review on the funding model will be conducted to ensure that it is fit for purpose and sustainable over time.
Standardized Underwriting Questionnaire on Health-related Information
After months of discussion and rounds of finetuning, the Medical Insurance Association has incorporated appropriately the views and comments from Member Companies, Life Operation and Risk Management Working Group, VHIS Office and Consumer Council into the standardized underwriting questionnaire. We shall invite comments from Members on the latest draft.
The standardized questionnaire will serve as useful reference for Member Companies when collecting health-related information for medical and / or longterm insurance products. The questionnaire has covered all the core areas of risk assessment from insurers while facilitating an easy understanding and response from the policy applicants.
New Guidelines
The effective date of GL20 on Cybersecurity is just around the corner (1 January 2020). One of its requirements is to have insurers establish a process to gather and analyse relevant cyber risk information and participate in information sharing groups. To facilitate the compliance of this requirement, HKFI will invite suitable technology provider with local expertise to conduct a briefing for Members.
On another note, GL21 on Enterprise Risk Management is also coming into effect on the same day. Members are encouraged to speak with your Case Officer at IA for enquiries or assistance as and when needed. We will conduct quarterly surveys to ascertain any operational / implemental difficulties Members may have and communicate with the IA collectively.
Training Programme for Certified Risk Management Professional (RIMS-CRMP©)
Insurance companies are due to submit a report on Own Risk and Solvency Assessment (ORSA) at the end of 2020. To equip the relevant practitioners with the requisite knowledge, HKFI is planning to launch CRMP© preparatory programme jointly with the Risk Management Society (RIMS) – a global not-for-profit organization founded in 1950. The CRMP© curriculum offered through HKFI will incorporate the local requirements set out by the IA including GL10: Guideline on the Corporate Governance of Authorized Insurers and GL21: Guideline on Enterprise Risk Management. The programme is planned for launch in Q2 2020. Stay tuned for updates and enrolment details.
In addition to winning the Innovation of the Year Award at the Asia Insurance Awards 2019, MIDAS has also been duly recognized by the Hong Kong Science and Technology Parks Corporation when our partner CryptoBLK won the Technological Achievement Award at the prestigious Hong Kong Awards for Industries 2019!
Since the launch of MIDAS a year ago, steady progress has been made with more and more Member Companies producing e-cover note via MIDAS. A meeting was recently held between the Accident Insurance Association and the Transport Department to review the user experience and discuss the way forward. Internally, we are also exploring the possibility of expanding the MIDAS platform to better serve our industry and the insuring public in other areas.
Construction Sub-committee
The Fire Insurance Association has set up a Construction Sub-committee to facilitate knowledge sharing among the construction insurance community. The Sub-committee held the first event on 9 December 2019, i.e. a briefing on “What has happened in the Engineering Insurance Market in the last 12 months?”. The purpose was to update and educate Members on the current trends and developments in the construction insurance industry.
International Union of Marine Insurance (IUMI)
We are pleased to report that Mr Ronald Kwan and Mr Edmund Kan have been elected by the IUMI Council as members of the Loss Prevention and Ocean Hull Technical Committees respectively. Together with IUMI Vice Chairman Mr Timothy Lee and IUMI Asia Ambassador Ms Agnes Choi, Hong Kong will continue to play a significant role in this international organization as IUMI Asia Hub.
Our latest endeavor is to support the General Insurance Association of Malaysia in organizing the next IUMI Asia Forum in Kuala Lumpur between 10 and 11 June 2020. For details, please visit the conference website at http://piam-iumiasiakl.com/
Investment-Linked Assurance Schemes (ILAS)
We believe that ILAS products can serve as a viable financial planning tool and increase the market product mix for policyholders with different risk appetite. Revamping ILAS products in Hong Kong has thus been made one of the top priorities for the current Life Insurance Council (LIC).
The idea was raised and discussed at the last HKFI-IA Liaison Meeting in October and thoroughly discussed. The ILAS Working Group (WG) has worked out an initial proposal which targets to simplify the approval process, enhance the protection elements of ILAS products and make it more customer-friendly. The proposal was submitted to IA for review on 23 December 2019.
Club 2028
We are pleased to announce that Ms Joyce Lau from Target Insurance and Mr Donald Lam from BOC Group Life Assurance have been appointed the Convenor and Deputy Convenor of the above think-tank respectively for the term of 2020. Taking this opportunity, we would like to record a vote of thanks to the incumbent Convenor Mr C K Chan for his leadership and contribution over the past two years.
In view of the overwhelming response on the “All you need to know about insurance” book series, the Club will publish the fourth book on travel insurance in conjunction with the Joint Publishing next year. Stay tuned for further updates!
Season's Greetings
At this festive time, we want to thank you for your support and guidance during the year. Wishing you and your family a Merry Christmas and a Blessed 2020!
Change of Authorized Representative
● Hang Seng Insurance Co Ltd (Life Member) – Mr Lam Hei Yin Joe
HKFI Memebership
As at 23 December 2019, the HKFI has 86 General Insurance Members and 51 Life Insurance Members.