November 2013 Issue No. 206
2013 Extraordinary General Meeting (EGM) & Christmas Cocktail Party
The EGM will be held at 5:30 pm on Friday, 13 December 2013 in our conference room (please refer to Circular Ref: Mv115/13 for details). This will be followed by our traditional Christmas Cocktail Party. I look forward to seeing you all there.
Independence of Insurance Authority (IIA)
One of the outstanding issues of major concern is the role of CEO as Responsible Officer (RO) of insurance agents' business conduct. Whilst we understand the stance of the Insurance Authority (IA), we have serious reservation on the feasibility of the CEO taking up the dual role as RO. In this connection, we have submitted a formal proposal to the Commissioner on the possibility of following a similar set of procedures and criteria in appointing an actuary in a life insurance company, i.e. allowing each insurer appointing an executive officer as the RO whose responsibilities will focus on ensuring compliance of internal controls and procedures by its tied agents. Such officer must be a fit and proper person with relevant and sufficient experience and approved by the IIA. Other issues relating to the transitional arrangement are currently being dealt with by the IIA Working Group set up by the FSTB. Latest progress is available at FSTB's webpage at: http://www.fstb.gov.hk/fsb/iia/.
Policyholders Protection Fund (PPF)
At the meeting with the IA and the Financial Services and the Treasury Bureau (FSTB) on 8 November 2013, we made some breakthroughs on a number of key areas. However, there remain some outstanding issues which will adversely affect the operation of our business and the interests of the policyholders, in particular on the proposed 1% levy cap for the life scheme and the continuity of cover for the general scheme. We will continue our constructive dialogue with the IA and the FSTB with the aim of finding a sensible and professionally sound solution.
Battle against Insurance Fraud At the referral of the Task Force on Prevention of Insurance Fraud & Claims Database, the Commercial Crime Bureau (CCB) has successfully handled a case. The policyholder concerned was found guilty and jailed for two years for fraud related to the deliberate concealment of information when buying two life insurance policies for her baby. The ruling of the District Court has sent out a strong and clear message to the public that insurance fraud is a serious criminal offence. The reporting mechanism between the HKFI and the CCB in combating insurance fraud is working well. We hope to see closer collaborations with the law enforcement bodies to protect the legitimate interests of insurance companies and policyholders.
Population Policy The Steering Committee chaired by the Chief Secretary for Administration released a consultation document on population policy and launched a public engagement exercise until 23 February 2014. A Task Force has been set up under the co-chairmanship of the GIC and LIC Chairmen. We will address those issues of direct relevance to our industry, i.e. develop a silver hair market, attract overseas and Mainland talents, improve injury management as part of the strategy to upgrade the supply of quality labour needed for the robust economic development of Hong Kong.