Monthly Brief 2014/01 EN

January 2014

Issue No. 208

New Members

On behalf of the Governing Committee, I would like to extend a warm welcome to Prudential General Insurance Hong Kong Limited as our General Insurance Member and Prudential Hong Kong Limited as our Life Insurance Member.

New LIC Councillor

In the by-election of the Life Insurance Council, Mr David Wong of FWD Life Insurance Company (Bermuda) Limited has been elected as councillor. A warm welcome to Mr Wong!

Independence of Insurance Authority (IIA)

In our letter dated 17 January 2014 to Professor K C Chan, Secretary for Financial Services and the Treasury, we recapitulated the industry's stance on the outstanding issues, i.e. representation on the IIA Board, Industry Advisory Committees, conduct requirements (including acting in the best interests of policyholders), pecuniary penalties and appellate mechanism. In addition, we are awaiting reply from the IA on the role of the CEO as Responsible Officer. With the proposed establishment of the IIA in 2015, we hope to be able to resolve these critical issues as soon as practicable.

Incidentally, we have issued a message to inform those registered persons with a valid email address that the Financial Services and the Treasury (FSTB) has set up a webpage on this subject. They may refer to this webpage for any update from the Government on the establishment of the IIA (www.fstb.gov.hk/fsb/iia/eng/ establishment/index.htm). We will continue communicating with all registered persons in the future to keep them abreast of the latest development.

Health Care Reform

Through various channels, we have been reiterating the insurance industry's serious concerns over, among other things, the lack of consumer choice, the sustainability of the High Risk Pool and the absence of Diagnosis-related Groups in the proposed Health Protection Scheme. Apart from these, we have opinions different from the consultant engaged by the Food & Health Bureau (FHB) as regards their premium assumptions. A meeting with the FHB and in the presence of the Honourable K P Chan was held earlier this week to express our concerns and make our stance clear.

The Task Force on Health Care Reform will meet again shortly to decide the next step forward.

Asian Financial Forum

Held between 13 and 14 January 2014, the 7th Asian Financial Forum 2014 attracted over 2,300 business leaders and senior government officials around the world. HKFI jointly organised a workshop with the FSTB on Captive

Insurance. The workshop was a success with more than 120 local and overseas participants. We were deeply thankful to speakers/panelists including Permanent Secretary for Financial Services and the Treasury Ms Au King-chi, Assistant Commissioner of Insurance Mr Ros Lam, Mr James Wong from Aon Global Risk Consulting, Mr Franz Josef Hahn from Peak Re, Mr Nick Cousins of Jardine Lloyd Thompson and our Deputy Chairman Mr Jimmy Poon for their excellent presentations and insightful remarks.

This workshop will be the beginning of our journey in promoting captive insurance as the must-have tool for self-managing corporate risks and Hong Kong as the most ideal place to start.

Visitors from South Africa

Right after the workshop, we received the Director and Deputy Director from the Department of Economic Development and Tourism of the Provincial Government of the Western Cape, South Africa. Apart from hearing their aspirations in developing the Asian market, we also briefed them on the local insurance market and regulatory environment, information on setting up insurance companies here and the potential opportunities Hong Kong has to offer.

Embracing Privacy and Data Protection Charter

A briefing was held on 13 January 2014 where the Privacy Commissioner explained the objectives, principles and details of the above Charter. So far, 23 Member have committed to support and implement the principles of the Privacy Management Programme (PMP). An official ceremony is scheduled to be held in mid-February to mark this important commitment. For those Member Companies who are yet to pledge their support, please do so by informing the HKFI secretariat at committee@hkfi.org.hk as soon as possible. (Circular Ref: Mv122/13).

Qianhai Development

On 16 January 2014, we received a joint-delegation from the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and the China Insurance Regulatory Commission Shenzhen Bureau. Our guests gave us a thorough introduction of the Qianhai development and then we discussed the potential business opportunities for the Hong Kong insurance industry. The Task Force on Greater China Affairs will consider arranging a site visit to the Qianhai area for Member Companies interested in learning more about its future development.

Green Power Hike HKFI Cup 2014

2014 marked the 10th anniversary of the Green Power Hike HKFI Cup! We are delighted to see the unfailing support from industry practitioners with over 200 teams participating in this charitable race over the past decade. On 25 January 2014, 25 teams competed for the HKFI Cup. Congratulations to Convoy

Financial Services Limited on winning both the 50 km and the 25 km races and Coface Hong Kong Branch the 10 km race. With the generous support from participating companies, the HKFI Cup raised a total of HK$300,000 this year to help funding projects on environmental and conservation education. Please join me in giving them a big round of applause!

Lunar New Year Greeting

On behalf of the HKFI Governing Committee, may I wish you and your family a Healthy and Successful Year of the Horse! Gong Xi Fa Cai and Ma Dao Gong Cheng!