May 2016
Issue No.234
I
am honoured to be elected as HKFI Chairman for the 2016/2017 term. This is a historic moment as the new Independent Insurance Authority will start operation by early 2017. Let’s work together to ensure a smooth transition to the new regulatory regime in the next 12 months and beyond.
Levy and Fees to be Collected by the Independent Insurance Authority (IIA)
HKFI New Member
Ou r w a r m e s t w e l c o m e t o S t . J a m e s’s P l a c e International (Hong Kong) Limited for joining the HKFI as a Life Insurance Member!
Establishment of an Insurance Claims Database for the Prevention of Fraud
A Members’ briefing was held in March 2016. Serious The Provisional Board on the captioned subject met last
week to receive the final proposal from the consultants on the business and operation model of the database. As a next step, the consultants will work out a detailed proposal to address the compliance issues relating to data privacy. In a month or two, we will conduct a member’s briefing to present the detailed proposals and In our subsequent members’ survey, we received consult you on the proper way forward. substantial comments which were conveyed to FSTB. We will follow up closely with the Administration on This exercise was started in December 2015. We are the drafting of this important piece of subsidiary law to pleased to see the good progress made so far. And we ensure the legitimate concerns of our Members are taken look forward to your continued support as we proceed to our next phase. into account.
concerns were raised regarding the collection mechanism and implementation time line proposed by the Financial Services and the Treasury Bureau (FSTB). On 5 May 2016, we met FSTB to review possible solutions to a range of technical issues including the proposed proxy approach.
Noting that the Food and Health Bureau (FHB) is about
to release the final report on the above soon, we have written to Secretary for Food and Health Dr Ko Wing Man to recap and highlight some of the key facts pertaining to the HKFI’s position on the VHIS: ● We do not object to Guaranteed Acceptance as long as there is a firm financial commitment from the Government on the High Risk Pool (HRP) upfront. The HRP and hence Guaranteed Acceptance, in our c o n s i d e r e d v i e w, i s n o t s u s t a i n a b l e w i t h o u t Government’s long-term funding commitment to the HRP.
● On the implementation of the VHIS, the industry supports a market agreement for which exception from the Competition Commission may be required or a Guidance Note to be issued by the Office of the Commissioner of Insurance (OCI) or the IIA. ● Regulatory oversight, if needed, should be conducted by the OCI or IIA as appropriate with claims complaints to be handled by the Insurance Claims Complaint Bureau as at present.
Draft Important Facts Statement for Mainland Policyholders (IFS-MP) to be issued by the OCI
Statistics show an increasing number of Mainland
visitors purchasing long term insurance policies in Hong Kong. The OCI and the industry agreed on the need to remind those Mainland customers the factors and risks to be considered when taking out such policies in Hong Kong. This is to help ensure they are making an informed decision. The relevant draft IFS-MP is now circulated among Members for comments (Ref: Mv054/16).