Best Practice on Standardizing Underwriting Questionnaire
The Medical Insurance Association (MedIA)’s Policy Standardization Sub-Committee started reviewing the underwriting questions in the medical insurance market in 2019 to simplify the questionnaire template and define the scope of health-related information that consumers are obliged to disclose.
Thanks to the tireless efforts of the Sub-Committee and the vital input from our Members and stakeholders including the Voluntary Health Insurance Scheme Office, Insurance Authority (IA), Consumer Council and Insurance Claims Complaints Panel, we have introduced the Best Practice on Standardizing Underwriting Questionnaire for Individual Indemnity Hospital Insurance Plans (SUQ) on 6 October 2020 for Members’ voluntary adoption (Circular Ref: Mv110/20).
Meanwhile, the HKFI is at the final stage of developing a training programme to familiarize intermediaries with the SUQ and the rationale behind. If you are interested in offering such training to your frontline sales force, please contact our Training Unit at 2861 9399. At the same time, we will strengthen public education to encourage wider adoption of the SUQ for enhanced transparency and improved customer journey.
Insurance-linked Securities (ILS)
The Insurance (Amendment) Bill 2020 on ILS was passed by the Legislative Council in July 2020. The next stage of preparatory work, including formulation of implementation details and drafting of the subsidiary legislation, is underway. In this connection, the IA has launched a six-week public consultation on the draft Insurance (Special Purpose Business) Rules to tie in with the expected implementation of the new regulatory regime (Circular Ref: Mv096/20).
On 6 October, the Task Force on ILS under HKFI met virtually with the Financial Services and the Treasury Bureau and IA and had a fruitful exchange of ideas on the draft rules and their proposed fees applicable to special purpose insurers (SPIs) relating to the issuance of ILS. Going forward, the Task Force on ILS will continue working closely with the authorities and provide technical support to facilitate the issuance of the ILS in Hong Kong and development of our ILS market.
Investment-Linked Protection Plan (ILPP)
Formation of IA's Disciplinary Panel Pool
The IA has responded positively to the suggestion of the industry and formed a Disciplinary Panel Pool (DPP) as part of its new disciplinary mechanism for licensed insurance intermediaries and authorized insurers.
We are pleased to note that six members formerly served at the Insurance Agents Registration Board (IARB) and Appeals Tribunal will continue providing professional input to and supporting the regulation of insurance intermediaries under the direct licensing regime. For the full list of the DPP members, please visit: https://www.ia.org.hk/en/enforcement/ Disciplinary_Panel_Pool/DPP.html
On 28 September 2020, we issued a circular (Circular Ref: Mv105/20) and briefed Life Insurance Members (LIMs) of an ILPP’s product chassis being developed amongst the IA, Securities and Futures Commission (SFC) and the Task Force on ILPP. Whilst we are still ironing out some of the product chassis’ particulars, i.e. the parameters of premium holiday and number of investment options applicable, we are actively resolving the remaining items with our regulator. In addition to the product framework, the Task Force on ILPP has also included a sample Key Facts Statement (KFS) and Investment Options Brochure (IOB) for ease of communication with the IA. Stay tuned for more details next month!
C-suite programme on Roles and Responsibilities of Key Persons in Intermediary Management Function
We hosted the above executive seminar on 8 October 2020 to provide Chief Agency Officers / Compliance Officers with knowledge and information relevant to the Intermediary Management Function of an authorized insurer under the IA’s regulatory regime. The seminar was well attended by more than 60 representatives from 30 member companies. And we are pleased to have IA’s Head of Market Conduct (Acting) Mr Peter Gregoire addressing this inaugural session and sharing his thoughtprovoking insights.
CRMP, ERM and ORSA Training Programme jointly launched by HKFI and RIMS
Toequip the relevant practitioners with the requisite knowledge of preparing for the ORSA Report, HKFI is pleased to launch a high-level training programme –Certified Risk Management Professional (CRMP) – in collaboration with the Risk and Insurance Management Society (RIMS). Under the prerequisite training of RIMSCRMP, the bespoke programme for HKFI consists of two additional courses on Enterprise Risk Management (ERM) and Own Risk and Solvency Assessment (ORSA). Thanks to the valuable input from the IA, the first cohort with self-learning CRMP modules and real-time virtual classes on ERM and ORSA will begin in November 2020. US and Asia-based trainers from RIMS will share handson personalized learning experience in ERM and ORSA with the illustration of an actual ORSA Report. The HKFI trainer will supplement with local examples to facilitate understanding and implementation of theories in the Hong Kong context. You are welcome to contact our Training Unit for details and enrolment (Circular Ref: Mv112/20).
International Financial Reporting Standard (IFRS) 9 and 17 – Insurance Contracts
The GIC has made continuous efforts in helping our Member Companies particularly those with limited actuarial support to get properly prepared. Two webinars were organized to walk through IFRS 17 for Property and Casualty Reinsurance and IFRS 9 for General Insurers on 15 and 27 October respectively. More than 250 participants joined the webinars with active participation.
The formation of the HKFRS 17 Services Consortium for Member Insurers is in progress. We hope to engage the selected vendor and offer professional services under bulk purchase plans to help our Members save costs.
Launch of Case Library at the ICB website
The Insurance Complaints Bureau (ICB) launched a new function – the “Case library” at its website at www.icb.org.hk/b5/ on 15 October 2020. The “Case Library" collects over 250 typical cases deliberated by the Insurance Claims Complaints Panel (Complaints Panel) in the past decades. The purpose is to facilitate understanding of the rationale behind the decisions of the Complaints Panel. Users can search for different cases with ease by entering a keyword and find the relevant information as reference.
More enhancement will be made to improve the user experience and enhance the functions of this online library.
Extension of Free Job Postings
In April, the HKFI announced an extension of the complimentary job posting service at the recruitment platform (http:// insurancejobs.hkfi.org.hk) amid the COVID-19 outbreak. In view of the persistent pandemic situation, we decided to further extend the complimentary job posting service for HKFI Members by 6 months, to continue supporting and helping our Members get through this trying time. Make good use of this free platform to attract talents now!
Membership News
HKFI Membership
As at 31 October 2020, the HKFI has 87 General Insurance Members and 54 Life Insurance Members.
Hong Kong Insurance Awards 2020
The Winners for 16 categories were officially announced at the Prize Presentation Ceremony of the Hong Kong Insurance Awards 2020!
In the midst of COVID-19 pandemic, we hosted the Prize Presentation Ceremony in lieu of a gala dinner on 29 October 2020 at Grand Hyatt Hong Kong. The entire proceeding was live-broadcasted at our Facebook Fan Page - HKFI Smart Union for industry friends to witness deserving awardees receiving the prestigious awards from Honourable Guests including IA Chairman Dr Moses Cheng, Under Secretary for Financial Services and the Treasury Mr Joseph Chan and IA CEO Mr Clement Cheung.
Visit our Facebook fan page now to relive the exciting moments and share the joy of the winners. Highlights of the ceremony will be available at https://www.hkfi.org.hk/hkia/. We look forward to your continued support next year!
Winners 2020
Outstanding Claims Management Award
Blue Cross (Asia-Pacific) Insurance Limited
Outstanding Customer Services Award
AIA International Limited
Outstanding Training & Development Award
FWD Life Insurance Company (Bermuda) Limited
Outstanding Corporate Social Responsibility Award
Bupa (Asia) Limited
Outstanding Initiative on Community Health Crisis Award - General Insurance
Bupa (Asia) Limited
Outstanding Initiative on Community Health Crisis Award - Life Insurance
AIA International Limited
Outstanding Integrated Marketing Strategies Award
Manulife (International) Limited
Outstanding Digital Marketing Campaign Award
Bowtie Life Insurance Company Limited
Excellence in Digital Transformation Award
AXA Hong Kong and Macau
Outstanding MPF/Employees' Benefit Product/Service Award
AIA International Limited
Most Innovative Product/Service Award - General Insurance
Bupa Hong Kong Workplace Health Programme 2.0
- Bupa (Asia) Limited
Most Innovative Product/Service Award - Life Insurance (Health)
Bowtie Group Insurance Plan
- Bowtie Life Insurance Company Limited
Most Innovative Product/Service Award - Life Insurance (Wealth)
Robotic Investment Choice Service
- AIA International Limited
Outstanding Agent of the Year
Wave Chow - AIA International Limited
Outstanding Community Intermediary of the Year
Lisa Tsui - AIA International Limited
Outstanding Young Professional of the Year - Intermediary
Cheung Sze Yiu - Prudential Hong Kong Limited