Cracking down on Insurance Frauds
Weapplaud the decisive action taken by the Independent Commission of Against Corruption (ICAC) against two syndicates which defrauded insurance companies for claims and commission. The arrests sent a strong message to the public in particular those who might intend to commit a felony through deception.
Taking this opportunity, HKFI Chief Executive Selina Lau has conducted several radio and newspaper interviews and explained to the public that everyone is a victim when it comes to insurance fraud and we should all play a role in combating such a criminal act. At the same time, we will make full use of the Insurance Fraud Prevention Claims Database (IFPCD) to detect and deter fraudulent claims.
IFPCD Solution Enhancement with Additional Data Fields
Learningfrom the close to two years’ operational experience, the Project Team proposed to include additional data fields to ensure the IFPCD analytical solution is able to capture the latest fraud scenario and operandi modus of the fraudsters.
Seeing the constant need to update and enhance the data fields in the future, the Steering Committee chaired by Mr Edward Chan convened last week and approved the Questionnaire on Evaluation of New Data Fields, a framework prescribing the parameters to be considered when including new data fields in the future.
Our plan is to embed the relevant data fields in the Personal Accident line of business when it is launched in 2022.
ICB signing MoU with IA
The Insurance Complaints Bureau (ICB) has entered into a Memorandum of Understanding (MoU) with Insurance Authority (IA) to expedite the handling of claim-related disputes. Starting from 1 November 2021, if a complainant submits a complaint to IA disputing the non-payment of a claim, either in part or in whole, under a personal insurance contract, where the complaint is within the terms of reference of ICB, IA will refer the complaint to ICB for handling.
The MoU is a firm recognition of ICB’s efficient operation and great achievement over the past decades. We are delighted to have the streamlined process in place to enhance policyholders’ experience and expedite the complaint handling process.
IA and HKMA’s joint inspection on premium financing
Recently,the IA and the Hong Kong Monetary Authority (HKMA) released the key findings of the above inspection. The HKFI finds IA and HKMA’s the inspection to be a good example of clear and balanced regulatory collaboration. We note the findings outlined in the circular, and that insurers and intermediaries were generally able to comply with the regulatory requirements. Whilst for a handful of insurers and intermediaries, there are some areas for improvement around risk disclosure, affordability assessments and sales practices. HKFI would encourage Member Companies to review their internal procedures and take the steps required, including intermediary training, to close these gaps.
IA's Conduct in Focus
On15 October, at its third issue of Conduct In Focus, the IA highlighted complaints relating to the ‘orphan policies’ phenomenon. We welcomed the points to note suggested by the IA as a warm reminder to insurers as well as their licensed insurance agents. As the major driving force of industry development, the HKFI has been and is dedicated to providing quality industry trainings on ethics for intermediaries to enhance industry’s professionalism and service standard. Going forward, we will continue to organize such kind of trainings for the intermediaries and encourage our insurers to be aware of the issues and note the relevant guidelines provided by the IA.
Meeting with Social Welfare Department
As one of the follow-up actions after the last meeting of Joint Subcommittee on Issues Relating to Insurance Coverage for Transport Sector at the Legislative Council in September, a meeting between the HKFI's core group and the Social Welfare Department (SWD) was held on 7 October 2021. Thanks to the steering of the joint Subcommittee Chair the Hon Frankie Yick, we have discussed the refinement of the existing correspondence templates with insurance companies for the Traffic Accident Victims Assistance Scheme. The core group will follow up with the SWD for further process issues later.
Extension of Free Job Postings
In April, we announced an extension until October for the complimentary job posting service at the HKFI recruitment platform ( http://insurancejobs.hkfi.org.hk) dedicated for the insurance industry. In view of the persistent pandemic situation and the economic environment, we decided to further extend this free service for HKFI Members until further notice. Through this, we hope to continue supporting our Members during this trying time. Don’t miss the chance to utilize this free platform to attract new blood!
Change of Authorized Representative
● General Insurance Member : Falcon Insurance Company (Hong Kong) Limited – Mr Furmen Chiu
Membership News HKFI Membership
As at 31 October 2021, the HKFI has 86 General Insurance Members and 52 Life Insurance Members.
