September 2014 Issue No. 214 Risk-based Capital (RBC) Framework for Hong Kong The Insurance Authority has just released the Consultation Paper on a RBC Framework for the Insurance Industry of Hong Kong. The Governing Committee has already set up a Task Force led by Mr David Alexander to work on this important subject. Two subgroups are also set up under the General Insurance Council (GIC) and Life Insurance Council (LIC) to address their different concerns on RBC. They will review the consultation document and co-ordinate an industry response based on the feedback from member companies. At our invitation the Commissioner of Insurance has kindly agreed to attend three briefings in October/ November, two for General Insurance Members and one for Life Insurance Members. Details will be announced soon.
Health Protection Scheme (HPS) At the relevant Legislative Council's Subcommittee meeting held on 12 September 2014, the Hon K P Chan reflected the grave concerns of the industry over the proposed HPS. Specifically we requested the Administration to adopt the latest compensation ratio of 69% to reflect more accurately the usage and function of medical insurance. We also queried on the viability of the basic standard premium rate at $3,600 bearing in mind an average of the 10% medical inflation in the past few years. In this connection, we suggested the Government to engage an independent actuarial consultant to validate the HPS model and relevant projection figures.
Hong Kong Insurance Awards We are organising this for the first time and the response from Member Companies and industry practitioners has been most encouraging. Over 70 entries of remarkably high quality were received competing for 12 categories of awards. Thanks to the tireless efforts of the honourable judges, all winners were duly selected. A prize presentation cum gala dinner will be held on 9 October 2014 at the Harbour Grand. In addition to acknowledging the achievement of the winners and share their joy, there will also be an interactive panel discussion to be moderated by High Court Judge the Honourable Mohan Bharwaney. Panelists including President of the Hong Kong Institute of Certified Public Accountants Mr Clement Chan, Executive Director & Chairman of Hong Kong Professional and Educational Services Mr Ricky Szeto and IARB Chairman Mr Ambrose Cheung will look at insurance from a non-insurance angle (www.metroradio.com.hk/Campaign/2014/104/HKIA/).
New Councillors Two by-elections were held to fill the casual vacancies following the resignation of Mr Marc Breuil and Mr Thomas Lee from the GIC and LIC respectively. Mr Dylan Bryant of Lloyd's and Ms Candy Yuen of HSBC Life (International) Ltd were duly elected Councillors. A special vote of thanks to Mr Breuil and Mr Lee for their many years of remarkable contribution to the work of the two Councils.
Educational Campaign Another burst of interactive educational campaign has just been launched via RoadShow and the social media! We unveiled an online game for families with young children on insurance know-how (www.roadshow.hk/hkfi2014). By providing correct answers to simple questions on various types of insurance, winners will be entitled to a lucky draw for gift certificates. Families can also sign up for a family outing to a farm on 19 October 2014. Representatives from the Hong Kong Family Institute will share with participants some simple but effective communication skills with children and family members. Another new element of this campaign is the video clips starred by popular youtuber GingerLemonCoke. By correcting common erroneous insurance concepts the audience will receive some useful tips on the use and purchase of insurance. Check it out here at www.roadshow.hk/hkfi2014/video and share the clips with your agents and staff.