Jul / Aug 2016
Issue No.236
HKFI New Member
Our warmest welcome to Compañía Española de
Seguros y Reaseguros de Crédito y Caución S.A. for joining HKFI as our General Insurance Member!
Policyholders’ Protection Funds (PPF)
Af t e r r o u n d s o f d i s c u s s i o n a n d e x c h a n g e o f
Medical Claims Statistics
The Medical Insurance Association conducted a media
conference on 21 July 2016 to release the 2014 set of medical claims statistics and provided an update on some significant trends:
● Over 4 million people in Hong Kong are currently covered by individual and group medical insurance with more than 200,000 additional members in 2015;
correspondence with the Office of the Commissioner of ● Medical cost inflation remained substantial. Insurance (OCI), we have resolved a number of issues Compared with 2013, the average claim cost for inon PPF. That said, there remain two key areas of major patient treatment increased by about 6 to 7% while concerns, i.e. the proposed level of levy cap for PPF Life day case surgeries were up by 18% Scheme and the unknown risk accumulation due to the ● There is a constant up-trend of medical fees in the proposed offer of PPF world-wide cover for personal past few years due to increasing utilization and insurance. Given the gravity of these matters, we medical progress but the average range of insurance engaged an external counsel to prepare a submission premium growth during the same period has remained detailing our concerns and suggested ways forward. stable at 4 to 5.2%; The submission was forwarded to the Commissioner of ● Colonoscopy and gastroscopy remained the key cost Insurance in early July for consideration. drivers, representing almost half of the total counts of In our submission, we also addressed some of the issues claim. raised earlier: ● Type of Policy Protected under PPF Non-life Scheme ● SMEs ● Levy Charges ● Refund of Premium ● Continuity of Cover ● Exclusion of credit insurance We shall continue our discussion with the OCI to try to work out a PPF framework which is legally sound and practically sustainable.
Important Facts Statement for Mainland Policyholders (IFS-MP) issued by the OCI
Early this month the OCI issued the IFS-MP which
incorporated most of the comments from the Life There are also two important messages to the public: Insurance Council (LIC) and Life Insurance Members ● Policyholders should regularly review the benefits (LIMs). coverage of their insurance policies to ensure it is From 1 September 2016 onwards, all Mainlanders sufficient to meet the rising expenses due to medical taking out life insurance policies in Hong Kong will be inflation. required to complete the IFS-MP to ensure they have a ● Procedures done in clinics and day surgery facilities good understanding of the proper sales process and the help contain medical fees as patients normally only relevant risks involved. For details, please refer to the need to pay about 1/3 of the fees for the same OCI’s website at: http://www.oci.gov.hk/download/ifs-mp. procedure carried out in a General Ward. pdf.