May 2013 Issue No. 201 This is my first message to you as HKFI Chairman. Thank you for your continued support and I look forward to working more closely with you in the coming year to address a fairly large number of challenging industry issues.
Policyholders' Protection Fund (PPF)
Four key areas contained in Government’s proposal are of major concerns to the industry - the continuity of coverage for non-life policies until expiry upon an insurer’s insolvency, the provision of cover to SMEs, no cap in the levy and off-shore risks. In light of experience in other markets and based on legal advice, we will make a submission to the Administration to formally express our views with a view to finding sensible solutions. You will be kept informed of developments.
Health Care Reform
The Task Force on Health Care Reform has been playing an active role in assisting the Food and Health Bureau and its consultant PricewaterhouseCoopers to come up with a viable Health Protection Scheme (HPS) designed to offer a better choice for consumers. A briefing was held on 30 May 2013 to update Members on the latest progress. In principle, we support the introduction of the HPS alongside with our existing products to uphold freedom of choice for consumers. Among other things, we have stressed the importance of greater transparency on fees charged by medical providers and securing firm commitment of the Government to finance the high risk pool to ensure its long-term sustainability. We issued a media release and held a press briefing in the past week to elaborate the industry's stance and our concerns over the proposed way forward for the HPS.
Marine Insurance
The Study on "How to Position Hong Kong as a Maritime Centre for the Asia-Pacific Region" (www.hkfi.org.hk/ en_media_20130429.html) has received some very favourable responses from the stakeholders including the Subgroup on Maritime under the Economic Development Commission. We are particularly encouraged to note that the Secretary for Transport and Housing has found the report findings and recommendations of value to the Maritime Industry Council. Going forward, the HKFI will step up efforts to work in closer partnership with these bodies to help develop and promote Hong Kong as an International Maritime Centre. On this we have had a very constructive luncheon discussion with the Honourable Cheung Chi Kong, Member of the Executive Council and Executive Director of the One Country Two Systems Research Institute, as well as academia from the City University of Hong Kong. Our other endeavor, as you know, is to host the most prestigious marine insurance international event - the International Union of Marine Insurance (IUMI) Annual Conference - in Hong Kong in September 2014. Coincidentally, the IUMI Secretary-General Mr Lars Lange was in town last week. I am pleased to say that he is impressed by the meticulous preparatory work the HKFI has done so far and the enthusiastic support from local marine insurers.