Formation of TF/WG/SCs 2020/2021
Thanks to the overwhelming support from our Member Companies, we have received over 250 nominations altogether this year. After thorough consideration by respective Chairmen, all taskforces (TFs) / working groups (WGs) / steering committees (SCs) are duly formed for 2020/2021. You may refer to our website for the latest list of members. We thank you all for your community spirit and readiness to devote your time and expertise to support our work (Circular Ref: Mv071/20).
Policyholders' Protection Scheme (PPS)
The Financial Services and the Treasury Bureau (FSTB) and Insurance Authority (IA) plan to start the legislative procedure of the PPS at the Legislative Council and expect to begin the discussion in 2021. As such, all insurers are requested to provide an updated assessment on the proposed PPS.
In view of the complexity of the exercise and the huge amount of work required, we reflected our Members’ difficulties in returning the data by the designated deadline. The IA, having considered our concerns, has decided to extend the deadline to 30 September. We appreciate such an extension and believe that it will allow sufficient time for insurers to ensure the quality of the data return (Circular Ref: Mv066/20)
HKFRS 17 Implementation Townhall
While the HKFRS 17 will not become effective until the annual reporting periods beginning on or after 1 January 2023, our work at the HKFI has never stopped.
To help Member Companies prepare for HKFRS 17 ahead of its implementation, we will organize a townhall meeting in July for the IA and the Hong Kong Institute of Chartered Public Accountants (HKICPA) to update Members on the HKFRS 17 survey results and the latest development of IFRS 17 respectively. This will be followed by the professional consultancy firms’ presentation on key implementation challenges. There will also be a marketplace for Members to interact with these consultants and take a closer look at their packaged solutions / tools. Watch out for our updates soon!
Usage of Alleviation Measures on COVID-19
In January 2020, Member Companies started introducing various proactive and innovative measures after the first confirmed case of COVID-19 was reported in Hong Kong. We made an inventory on the self-initiated alleviation measures and additional benefits offered by insurers and consolidated them into the “Insurance Dashboard on COVID-19” for public information.
Recently, we conducted another round of survey to understand the utilization of these alleviation measures and additional benefits. The results showed that, inter alia, over 32,000 travel insurance policies have been granted refund, representing premiums of over HK$9.6 million; nearly 140,000 policyholders applied for the premium grace period extension and were offered to defer the receipt of payment of annualized premiums exceeding HK$8.4 billion. All these figures were captured in a press release issued on 12 June and widely covered by the press. It reflected that insurers’ considerate offers have been put into substantial use and once again demonstrated the pivotal functions of insurance in the society.
COVID-19 Seminar Series
COVID-19 has posed unprecedented challenges to all sectors of the economy and the insurance industry is no exception. To better understand the impact the pandemic has on our business and what insurers could do to better position themselves, the Technical Associations under the General Insurance Council will be organizing a seminar series entitled “Coexisting with COVID-19 – what’s next for insurers in HK?”. Experts with different professional background will be invited to share with Members the latest information and insights on various insurance lines of business amidst the pandemic. The first one on marine insurance will be held in July. Stay tuned!
Merger of 2019/2020 and 2020/2021 CPD Assessment Periods
Many CPD training activities were suspended or canceled due to the outbreak of COVID-19. As a result, the IA has accepted our request and allowed a 3-month extension for CPD compliance back in February 2020.
Albeit that the situation of COVID-19 outbreak in Hong Kong and the number of confirmed cases have stabilized, some intermediaries still find complying with the CPD requirement before the extended deadline challenging. The IA has thus merged the 2019/2020 and 2020/2021 CPD Assessment Periods till end of July 2021 and the CPD compliance reporting end date for both years will be on 30 September 2021. To have a better understanding of the CPD requirements as set out in GL 24, please visit: https://www.ia.org.hk/en/supervision/reg_ins_intermediaries/cpd.html
Secrecy Provision and Assumed Consent
Section 121 of the Insurance Ordinance (IO) prohibits disclosure of information obtained in the course of inspection, investigation or disciplinary action unless with the IA’s consent. Noting that insurance agents under such circumstances will require support / advice from their appointing insurers, lawyers, etc., we have thus reflected this concern to the IA and cited some possible solutions to address this issue.
We are pleased to note that the IA has taken into account our views and resolved the issue through the issuance of an Explanatory Note and FAQs. Members can visit their webpage “Legislative and Regulatory Framework/ Explanatory Notes” at https://www.ia.org.hk/en/legislative_ framework/explanatory_notes.html for details
Virtual Onboarding
On 18 June, the Sub-Committee on Virtual Onboarding (VO) under InsurTech Task Force of Life Insurance Council (LIC) was gathered at our HKFI conference room for a demonstration session with the four potential vendors offering VO solutions. A survey was then distributed to the participants to gauge their company’s interest and preference on the vendors.
Going forward, we will present to the IA the shortlisted solutions which meet all technical and compliance requirements. Working with the IA and the Sub-Committee, we aim at shaping a VO platform accepted by the IA and facilitate business growth of our Member Companies.
Meeting with Taxi Association and Operators
On 18 June 2020, we met with Hon K P Chan, Hon Frankie Yick, IA and the taxi trade representatives to discuss the issues on taxi insurance premiums. Through the fruitful and constructive discussion, we have come up with some long-, mid- and short-term initiatives to help improve the situation. A follow up meeting was held earlier this week to discuss these possible solutions in details. We will continue our communications with the taxi operators on areas of mutual concerns.
Investment Linked Protection Plan (ILPP)
We have recently engaged the IA to discuss the revival of Investment Linked Assurance Schemes (ILAS) amidst the low interest rate environment. The conclusion was that the product needs to be revamped to ascertain a simple structure, transparent investment fund choice and higher protection components. And to better reflect the new nature and characteristics of such product, it will be renamed as Investment Linked Protection Plan (ILPP).
The TF dedicated to working on this subject matter has convened two meetings this month to derive the product framework and has provided a preliminary product chassis to IA for their consideration. More discussion with the regulator will take place and we shall keep our Life Insurance Members apprised of any updates when appropriate.
Caring Organisation
The HKFI has been awarded the status of Caring Organisation by the Hong Kong Council of Social Service for the 15th consecutive year. This is due recognition of our remarkable contribution to a wide range of community projects and the volunteerism of our staff.
The Hong Kong Insurance Awards 2020
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THong Kong Insurance Awards 2020 is inviting applications!
Entry submission deadline is 31 July 2020. Visit our official website now at https://www.hkfi.org.hk/hkia/ and submit entries on your outstanding accomplishments and successful stories for the period between 1 July 2019 and 30 June 2020.
Meanwhile, you can book your table at the Awards Presentation Ceremony cum Gala Dinner to be held at the Grand Hyatt hotel on 29 October 2020. Reservations will be made on a first come, first served basis. Tailor-made sponsorship packages are also available. For enquiries, please contact Ms Zelma Cheung of SCMP at 2565 2494 / 6100 7273 or Ms Maggie Leung of HKFI at 2861 9332.
As at 29 June 2020, the HKFI has 86 General Insurance Members and 54 Life Insurance Members.