Sept 2015
Issue No.226
Establishment
of the Independent Insurance Authority (IIA)
Developing
Hong Kong into a Financial Technology (Fin Tech) Hub
The new licensing regime under the IIA will be “activity- Hong Kong as an international financial hub is lagging based", in that all persons who engage in "regulated activities" will need to be licensed. This includes licensing of the employees of insurers who may not previously have had to be licensed. There are, however, certain exemptions from the licensing requirements for staff of insurers under section 123, many of which were included at the suggestion of the HKFI. In this connection, we have prepared some FAQs to assist Member Companies to understand the new licensing requirements. We are also collecting further questions from Member Companies in this regard (Circular Ref: AY/SL/ec/15-032). We will then approach the Government and the Provisional Insurance Authority and seek clarification, with a view to producing a set of comprehensive guidelines well in advance of coming into force of the new licensing regime.
Policyholders’ Protection Fund (PPF)
In February 2015, we wrote to the Commissioner of
Insurance on a raft of outstanding issues regarding the PPF. We were disappointed to receive a reply from the Insurance Authority in mid-August 2015 rejecting the majority of our recommendations. We strongly believe that it is impor tant not to inadvertently create systemic risks to the industry so we will engage a legal expert to help further explain our position to the Administration.
Setting up
of an Insurance Claims Database
Building an industry-wide insurance claims database is
on top of our agenda. The idea, borrowed from overseas markets like the UK, is to help combat insurance fraud to protect public interest. As a first step, we will engage Member Companies to obtain their support and map out our way forward.
We have also started dialogue with the new Privacy Commissioner Mr Stephen Wong to ensure we strike the right balance between protection of personal data and the free flow of information as required under this project.
somewhat behind other regional markets in terms of digital technology. In support of Government’s latest initiative in tackling this problem, we have set up a task Force on Fin Tech Hub. The Task Force led by Mr Lennard Yong has identified six key areas to work on and will come up with some concrete recommendations.
Guides for Insurers and Agents on Contracting Procedures
There has been concern that individual insurance
agents might not fully understand the contractual terms before they sign the contract/agency agreement with insurance companies, which may result in unnecessary disputes. To address this, the HKFI has devised two sets of Guides for Insurers and Agents respectively. Also it is suggested that new individual agents be given a copy of the Chinese version of the contract for reference.
Hong Kong Insurance Awards 2015
Congratulations to the top
three finalists for each of the 13 award categories! They met the panels of judges on 16 and 17 September (http://www.hkfi.org. hk/hkia/2015finalists.html) for the final phase of adjudication. The winner of each award will be formally announced at the Prize Presentation-cum-Gala Dinner to be held on 29 October 2015 at the InterContinental HK. Prominent guests and members of the judge panel will join this event and present the trophies to the deserving winners. Reserve your tables now at http://www.hkfi.org.hk/hkia/tablebooking.html to celebrate the top-notched performance of our industry!