Oct 2015
Issue No.227
Establishment
of the Independent Insurance Authority (IIA)
The Financial Services and the Treasury Bureau
(FSTB) has revised the time table as follows:
By end of 2015 Establishes the Provisional IA (PIA) 1 year after PIA sets up Takes over prudential regulation of the current Insurance Authority (IA) 2 - 3 years after PIA sets up Takes over conduct regulation of the 3 Selfregulatory Organisations
We have started issuing e-bulletins entitled “What You Need to Know about IIA” to those insurance agents who have provided us with their valid email addresses. The idea is to keep them abreast of the latest development regarding the establishment of the IIA. If you or your insurance agents would like to receive this useful update, please sign up now at: http://182.173.76.121/hkfi_email/. Under the new licensing regime, all persons who engage in "regulated activities" are required to be licensed. As requested by the industry, the Administration has made certain exemptions under section 123. However, Members have expressed concerns on the application of these exemptions. Their concerns are being reviewed and consolidated and we will seek clarification from the IA accordingly with a view to producing a set of comprehensive guidelines.
Risk-based Capital (RBC) Framework
Seminar on the English Insurance Act 2015
On 30 September 2015, the IA published the
The above seminar, held on
Consultation Conclusions on the RBC Framework for the Hong Kong Insurance Industry. It transpired that while there was general agreement on the high level principles of the conceptual framework, there were mixed views on some of the technical aspects and details, which would be handled in the next phase of the project. In this connection, we are pleased to note that the IA has accepted the industry’s recommendation and would conduct another round of consultation on the Framework.
At a Members briefing organised by the Task Force on RBC Framework on 8 October 2015, our guest speakers spoke on the quantitative aspect of the new required capital standard and own risk and solvency assessment. 190 participants from 80 General and Life Insurance Members attended the briefing and the Q&A session was informative and well received.
19 October 2015, attracted 180 practitioners from the insurance and legal fields. They found the presentation and panel discussion most relevant and insightful. A vote of thanks to our key note speaker Professor Robert Merkin and the panelists for their support and generous sharing of ideas.
With the successful organisation of this CPD seminar (for both insurance and legal fields), we will conduct more quality training and industry events of this kind in the coming months. Stay tuned!