Oct 2016
Issue No.238
Levy to be collected by the Independent Insurance Authority (IIA)
I am pleased to report that after months of discussion
with the Financial Services and the Treasury Bureau (FSTB) and four rounds of industry consultation, we have a common position on all key issues including the implementation date, incremental levy rates and how to tackle life policies with general insurance elements (Circular Ref: Mv105/16). We are extremely grateful for your valuable views and inputs. I would also like to thank FSTB for their readiness to listen to our views and find practical ways to address our concerns, particularly in respect of allowing insurers sufficient time to modify their systems in time for the levy collection to commence on 1 January 2018. This underlines once again your Federation’s commitment to working closely with the Government and all stakeholders to ensure a smooth transition to the new IIA regime.
Cracking Down on Insurance Fraud Syndicate
Risk-based Capital (RBC) Framework
The OCI has recently commissioned a Consultancy
Study on Formulation of RBC Rules for the industry and would develop a set of preliminary detailed rules and technical guidance for Quantitative Impact Studies (QIS) valuation methodology and QIS completion instructions. On this, they are engaging relevant stakeholders and have set up four Industry Focus Groups (IFGs) to work on specific areas. HKFI was invited to nominate representatives of Member Companies to join the three IFGs on: Pillar 1 on Life Insurance, Pillar 1 on General Insurance and Pillar 2 on Own Risk and Solvency Assessment (ORSA) (Circular Mv100/16). In view of the overwhelming response, we requested the OCI to increase the nominations for each IFG from 12 to 15 and allow the sharing of information on a confidential basis. The IFGs met for the first time on 24 October 2016 and will continue to provide professional support and expert advice to the OCI on this very important subject.
Young Insurance Executive Development Programme (YIE)
In August 2016, we received complaints from Member On 6 October 2016, we organised the first “Speed Dating” Companies on a bogus website selling motor insurance, particularly to high risk individuals, without proper licensing. We immediately reported this to the Commercial Crime Bureau (CCB) of the Hong Kong Police Force and Office of Commissioner of Insurance (OCI) and urged them to take appropriate actions. After two months of investigation, the CCB arrested four people for forging motor insurance cover notes, which might have been sold to over 700 car owners.
Thanks to the support of the CCB and the OCI, we were able to help crack down on this organised crime and prevent more car owners being victimised. We at the HKFI will continue to step up our efforts against insurance fraud through our established platforms with the law enforcement bodies.
for insurers and potential applicants who have expressed interest in pursuing a career in insurance. The event was well received by both groups and in particular, it helped attract young talents and offered them a good chance to better understand what insurance can offer as a promising, life-long career. Going forward, we will continue exploring more efficient ways to bring young people into the industry and strengthen our talents pool.