Monthly Brief 2014/12 EN

December 2014 Issue No. 218

2014 Extraordinary General Meeting (EGM) & Christmas Cocktail Party As approved at the EGM held on 15 December 2014, membership subscription fees next year will remain unchanged.

The EGM was followed by our traditional year end cocktail party. The highlight of the evening was bidding Permanent Secretary for Financial Services Ms Au King Chi farewell, who will be retiring by the end of 2014. We wish her all the best as she begins a new chapter in life.

For more happy mementos of the evening, please visit http://www.hkfi.org.hk/#!/about-the-hkfi/album/110.

Independent Insurance Authority (IIA) The Legislative Council's Bills Committee has completed policy discussion of the Bill and commenced the clause by clause review. To ensure our views are understood by the members of the Bills Committee, we have met with the Hon Kwok Wai Keung and the Hon Sin Chung Kai. We will continue our efforts in reflecting the industry's concerns to the Legislative Councillors.

At the same time, we have already engaged a London QC with international standing to provide an independent legal advice on the issues of best interests and internal oversight of disciplinary procedure. We aim to provide this independent advice to the Administration in January 2015.

We have just had a constructive meeting with the Financial Services and the Treasury Bureau (FSTB) and the Insurance Authority (IA) to address the remaining outstanding issues. I am pleased to report that we are making good progress in putting our messages across. And we hope to receive positive response from the Administration in due course.

Voluntary Health Insurance Scheme (VHIS) After the Food and Health Bureau (FHB) launched the consultation on the VHIS last week, the Task Force on Health Care Reform has been busy reviewing the document, answering media enquiries and appearing in various radio and TV programmes to express our grave concerns over the VHIS. While the insurance industry hopes to see the successful implementation of a viable and sustainable health care financing scheme for the good of the community, we have serious doubts about the sustainability and viability of the proposed VHIS, which deprives consumers of free choice, under-estimates medical inflation and provides limited incentive to attract young and healthy new entrants.

To ascertain how the proposed VHIS would affect our industry, the Task Force on Health Care Reform is carrying out a simple survey among all Member Companies writing medical insurance business. We will also conduct an industry forum on 2 February 2015 for practitioners to hear first hand from the FHB details of VHIS and present our views. The Task Force will consult Members before submitting an industry position paper by mid-March 2015.

Risk-based Capital (RBC) Framework In mid-December 2014, we submitted a high level response to the IA on the above consultation stressing the importance to have due balance between policyholder security and cost, maintain competitiveness of Hong Kong as a financial centre, simplify group supervision by gaining "equivalence" and grant equivalence to other similar regimes and provide more details on the process and governance.

With a one-month extension granted by the IA, we will have more time to provide, in the light of responses from Member Companies, a set of consolidated answers to the various specific questions raised in the consultation paper. If Member Companies have any comments or concerns, please send them to us at committee@hkfi.org.hk on or before 2 January 2015.

Guests from China Insurance Regulatory Commission (CIRC) On 16 December 2014, we received a high level delegation led

by CIRC's Vice Chairman Mr Huang Hong. Together with other industry representatives from Hong Kong intermediary bodies, we discussed a range of issues concerning the development of our mutual markets and how to strengthen cross-border co-operation.

We are pleased to note Mr Huang's positive response to some of our ideas regarding the proposed setting up of customer service centres in designated cities in the Guangdong Province and establishing a cross-border anti-fraud mechanism.

Insurance Claims Complaints Bureau (ICCB) 25th Anniversary Cocktail Reception ICCB is celebrating its silver jubilee in 2015. A cocktail reception will be held on Thursday, 5 February 2015 at the Hong Kong Football Club with Prof the Hon K C Chan, Secretary for Financial Services and the Treasury, as the officiating guest. Taking this opportunity, we will acknowledge the outstanding voluntary services extended by the long-serving Insurance Claims Complaints Panel Chairman and the honorary secretaries. We look forward to your participation at this historic event!

Mission Well Community Project The Junior Financial Secretaries (JFS) have started Christmas break in a most memorable way.

On 23 December 2014, the JFS met the Hon John Tsang, Financial Secretary of the HKSAR, and expressed their views on the 2015/2016 budget.

Accompanying them was GIC Deputy Chairman Mr Pui-leung Chan. In addition to conveying their concerns to the Financial Secretary on the current issues, they also suggested solutions to increase the revenue of the HKSAR Government, health care policy, development of technology industry and knowledge-based economy. For details of the JFS’ submission in Chinese, please visit http://www.hkfi.org.hk/pdf/jfs2014.pdf.

Season’s Greetings At this festive time, may I wish you and your family a very Merry Christmas and a most Joyful and Prosperous 2015!

Jimmy Poon HKFI Chairman

MEMBERSHIP NEWS Change of Authorized Representatives Allianz Global Corporate & Specialty SE (General Member) – Mr Chin Feng HKFI Membership As at 24 December 2014, the HKFI has 86 General Insurance Members and 43 Life Insurance Members.