Dec 2023
Issue No.317
HKFI General Meeting
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he HKFI General Meeting held on 18 December approved the new subscription rates next year for both General Insurance Members (GIMs) and Life Insurance Members (LIMs). In addition, it also approved the formation of a wholly owned subsidiary of HKFI in Hong Kong, under proposed name of HKFI (GBA) Company Limited, to prepare for establishment of the prospective CS Centres. We look forward to having your continuous support.
Christmas Cocktail Party 2023
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ollowing the HKFI and ICB General Meetings, we are thrilled to host our HKFI Christmas Cocktail Party at the HKFI conference room again since 2019. Close to 160 Members and industry friends joined us to celebrate this festive season. For the joyous moments that evening, please click here.
Launch of New HKFI Website
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his year is the 35th anniversary of HKFI. To mark this important milestone, we are delighted to unveil the rd 3 edition of the official website. We have completely transformed it with a sleek and user-friendly interface, showcasing our dedication to delivering a seamless and effortless navigation experience for our Members and the general public. Start exploring the brand new HKFI website now: https://www.hkfi.org.hk/
HKFI’s Proposals Being Taken on Board by the Administration and the IA
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n earlier December, the Insurance Authority (IA) has launched a Consultation to consult the public and industry on the subsidiary legislation for the Risk-based Capital (RBC) regime, including the draft Insurance (Valuation and Capital) Rules (Cap.41R) and the draft Insurance (Submission of Statements, Reports and Information) Rules (Cap.41S) to tie in with the implementation of the RBC regime. We are delighted to note that the IA has taken into account one of our Think Tank Proposals on providing incentives / discounts on capital risk charges for green instruments such as green bond investments under RBC framework. We are equally excited that the FSTB has accepted our proposal on retaining ILAS as the eligible collective investment scheme under the revived Capital Investment Entrant Scheme (CIES) and assets denominated in both HKD and RMB are permissible. We believe the CIES will support the growth of our economy by attracting new capital and talents. We remain committed to advancing our Think Tank Proposals and other industry recommendations.
Extreme Weather Statistics and Taxi Insurance Coverage
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he IA recently released the claims statistics for two extreme weather events occurred in early September, revealing that the motor business sector incurred claims amounting to HK$176 million. Riding on these figures, we reiterated that having adequate insurance coverage is of utmost importance for individuals and communities alike. To bridge the protection gaps and mitigate potential losses, members of the public should be proactive in taking out sufficient insurances and regularly reviewing them. Incidentally, in response to rumors that motor insurance becomes invalid during typhoons or black rainstorms, the HKFI gathered taxi claim data from relevant member insurers, providing compelling evidence to against such misconception. The statistics as of November indicated that during Super Typhoon Saola and the phenomenal rainstorm in September, there were no less than 21 taxi-related claims, involving a claim amount of no less than HK$5.4 million.
Only a small number of taxis were eligible for reimbursement through insurance compensation mainly due to the significantly low adoption rate of comprehensive motor insurance within the taxi industry. We urge the taxi industry considering purchasing comprehensive motor insurance to ensure full protection for their vehicles in the future and making good use of the incentives offered by taxi insurers to equip their vehicles with the relevant safety devices to enhance safety levels and help mitigate claim costs.
Insurance Industry Climate Charter
Forum on Climate Risk Management
n his speech at the Asian Insurance Forum 2023 on 8 December, HKSAR Chief Executive (CE) the Honourable John Lee highlighted the Climate Charter as a united commitment of the insurance industry to responding to the climate crisis. We are very encouraged to receive such an endorsement and support from the government on the Climate Charter.
hile we are diligently striving to promote green practices within our membership, we are concurrently taking proactive measures to foster collaboration with other business sectors that share our goals to generate greater impact.
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Signing up for the Charter shows the industry’s commitment to build a more sustainable future. Members are strongly encouraged to become one of the inaugural signatories of the Climate Charter. Please refer to our circular (Circular Ref: Mv071/23) for details or contact the HKFI Secretariat via committee@hkfi.org.hk if you have any enquiries. We eagerly anticipate your valuable support as we join forces to create a meaningful and lasting impact together!
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Our latest endeavor entails a partnership with the Business Environment Council and Real Estate Developers Association, as we join forces for the first time at the Forum on Climate Risk Management. The event scheduled for 17 January 2024 is supported by the Development Bureau and the Environment and Ecology Bureau. Relevant officials will explain and discuss the Government's strategies and efforts on climate change adaptation and resilience while experts from our respective sectors will join the panel to express views from our perspective. Details will be made available in due course.
Reference Checking Scheme for Insurance Intermediaries
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s the representative body actively advocating for the adoption of best practices and foster public trust and confidence in the insurance industry, we are constantly looking for ways to uplift the professional standard of our practitioners. Our latest initiative is the introduction of the “Reference Checking Scheme for Insurance Intermediaries”, which aims to ensure the fitness and properness of insurance intermediaries and prevent individuals who engage in misconduct from switching to other insurers without disclosing such information to the new insurer. The LIC’s Professional Standards Working Group in conjunction with the Insurance Authority’s Market Conduct Division have spearheaded this project and engaged the intermediary bodies to seek their initial views. We are pleased to note that the intermediary bodies share our common goal of safeguarding the interests of policyholders and maintaining the public confidence in our industry. We are launching an industry consultation to garner views from all our Life Insurance Members and different insurance intermediary bodies to enhance the details and operational logistics of this Scheme (Circular Ref: Mv083/23).
MT Programme: Executive Certificate in Insurance Leadership Acceleration
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o implement the HKFI Think Tank Proposal on fostering sustainable talent development for the insurance industry in Hong Kong, we have partnered with the HKU Business School to deliver the above Management Trainee (MT) Program (the Program) for young and middle management professionals in the industry. We are thrilled to report that this programme has received financial support from the Financial Incentive Scheme (FIS) for Professional Training – Insurance Sector. The programme comprises eight meticulously designed modules that prioritize industry-relevant leadership skills and emerging trends. Each module is thoughtfully crafted to provide participants with comprehensive knowledge and practical insights from the faculty of HKU Business School. The highlight of the programme is the Insurance Thought Leader Sharing Session, where esteemed industry leaders will serve as guest speakers. By gaining firsthand insights from these accomplished professionals, who have successfully navigated the intricacies of the insurance industry, participants will be inspired and empowered to apply these lessons to their own careers. Upon successful completion, participants will be awarded the Executive Certificate in Insurance Leadership Acceleration jointly issued by HKFI and HKU Business School. The program is scheduled to commence in early April 2024. An information session will be organized in Q1 2024 for potential candidates, management level professionals, HR practitioners and those who are interested in this program.
Insurtech Insights Asia 2023
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he HKFI supported the Insurtech Insights Asia 2023 Conference held in early December and helped promote this grand event to our Members and associates.
At the two-day conference, HKFI Chief Executive Ms Selina Lau moderated the panel on 'Female Leadership: Women Driving Change in Insurance' with interactive discussion among four accomplished female leaders from insurance industry.
Consumer Education
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o enhance our efforts on consumer education, we have produced a series of TV informercial segment at TV channels to cover various insurance hot topics. The first segment was broadcasted in the prime-time program of HOY TV " 一 線 搜 查 ” on 19 December. In the episode, HKFI Chief Executive Ms Selina Lau highlighted the key features of the Unilateral Recognition Policy for drivers traveling between Hong Kong and Guangdong via the Hong Kong-Zhuhai-Macao Bridge (HZMB). More TV segments will be broadcasted in the coming months focusing on talent development and customer protection. Stay tuned!
EAIC Website is Now Live
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heck out the exciting details of this highly anticipated event from this website: www.eaic2024.hk
Some key features, including the congress information, main theme and key topics; registration rate; and itinerary planning are uploaded on our website for you to plan your trip to Hong Kong. Stay tuned for our updates in the weeks to come. Save the date for the Congress on 24-27 September 2024 and be part of this enriching gathering!
New Year Greetings
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e thank you for your support and guidance over the year. Wishing you all a Prosperous 2024!
Membership
News
Change of Authorised Representative General Insurance Member : Coface – Mr Benoit Ganzmann HKFI Membership As at 28 Dec 2023, the HKFI has 81 General Insurance Members and 54 Life Insurance Members.