Monthly Brief 2012/09 EN

September 2012 Issue No. 193

Consultancy Study on Risk-based Capital Framework for Insurance Business in Hong Kong

The Insurance Authority (IA) has commissioned KPMG to conduct the above study to review the current solvency and capital regime and recommend a risk-based capital (RBC) framework for the conduct of insurance business in Hong Kong. The HKFI is invited to provide input on the scope, solvency capital, measurement of assets and liabilities for the future regulatory framework.

This is a matter of profound significance for the industry and we will do what it takes to help deliver a good outcome. The Governing Committee has set up a special task force under Mr Alex Chu to review the matter and provide constructive ideas to the IA.

Health Care Reform On 11 September 2012, the Task Force on Health Care Reform briefed and updated Member Companies on the latest development.

In essence, we at the HKFI support a number of proposals from the Government but at the same time have major concerns on issues like open enrolment, operation of the high risk pool, etc.

A s o u r n e x t s t e p, t h e F o o d a n d H e a l t h B u re a u ’s c o n s u l t a n t PricewaterhouseCoopers (PWC) will contact medical insurers individually to gain better understanding of the operation of the market. Meanwhile, the Task Force will be meeting PWC periodically to share ideas on technical issues regarding the development of the proposed Health Protection Scheme.

Launch of the HKFI Mobile App

As part of our continued efforts to use digital tools to provide timely services for our customers and reach out to the wider public, we launched a brand new HKFI mobile app in August 2012.

This provides users with instant access to the database showing all registered insurance agents in Hong Kong, useful tips on taking out insurance policies, comprehensive lists of insurance companies and first-hand information about the HKFI and our activities. The highlight of the new app is the life adventure game designed to remind players the risks they will encounter at different stages of life. Player has to make wise decision to manage such risks and plan ahead for a more secure and better future.

The free HKFI app has received favourable feedback from users. Download your gateway to insurance information now at the App Store and Google Play!

US Foreign Account Tax Compliance Act (FATCA)

The Financial Services and the Treasury Bureau is going to meet with the US Internal Revenue Service and the Treasury to discuss the possibility of signing an Inter-government Agreement on the compliance of FATCA. The Task Force set up by the Life Insurance Council on this subject will continue to monitor developments and formulate strategies to lobby for a practical way forward and facilitate proper compliance.

Mission Well Community Project

The third batch of Junior Financial Secretaries has made ver y constructive use of the summer holiday by receiving intensive training and joining a series of sharing sessions hosted by the HKFI and the Boys’ and Girls’ Clubs Association. They also met with Ms Emily Lau, Chairman of the Legislative Council’s Financial Committee (2008-2012), and Dr Law Chi-kwong, Chairman of the Executive Committee on the Community Care Fund. These meetings and the knowledge they have acquired on financial planning will help them prepare for a submission to the Financial Secretary on the 2013 budget.

Visitors from China Insurance Regulatory Commission (CIRC)

Mr Zhu Wei Zhong and Mr Liao Xinnian from the CIRC’s Guangdong Bureau visited us on 28 September to learn more about the HKFI’s self-regulatory regime, consumer protection mechanisms and public education in insurance.

International Union of Marine Insurance (IUMI)

The IUMI annual conference was sucessfully held in San Diego, USA, last week. More than 300 delegates from around the globe attended this important event with the theme of “Marine Insurance Charting the Course through Economic Uncertainty”. The Hong Kong delegates from the Marine Insurance Association will share the information they have learnt from the Conference in due course.

26th East Asian Insurance Congress (EAIC) 2012

The above conference, with the theme “Transforming the East Asian Insurers - Time for Action Now”, will be held between 29 October and 2 November in Kuala Lumpur, Malaysia. Around 1,000 delegates from around the world have signed up for the event. Join them now and register at the EAIC 2012 website at: http:// eaic2012kl.com/index.html.

Agnes Choi HKFI Chairman

MEMBERSHIP NEWS Change of Authorized Representatives Aviva Life Insurance Company Limited - Ms Margot Cronin Starr International Insurance (Asia) Limited - Mr Ross Matthews QBE General Insurance (Hong Kong) Limited - Mr Norris Ma Zurich Assurance Ltd - Mr Ted Wai Zurich Life Insurance Company Ltd - Mr Ted Wai HKFI Membership As at 28 September 2012, the HKFI has 88 General Insurance Members and 43 Life Insurance Members.