May 2017
Issue No.245
Message from HKFI Chairman
I am honoured to be elected as HKFI Chairman for the 2017/2018 term. With the Insurance Authority officially replacing the Office of the Commissioner of Insurance (OCI) on 26 June 2017, we as an industry are embarking on a new journey of transformation to a better future. The HKFI will continue to play an instrumental role as the progressive voice of the industry. I am looking forward to your continuing wise counsel and unwavering support.
Stuart Harrison HKFI Chairman
Independent Insurance Authority (IIA)
Cyber Security Information Sharing
The Government announced the appointment of five Platform (CISP) senior executives of the IIA: The CISP is jointly launched by the HKFI and the ● Mr John Leung – Chief Executive Officer; ● Ms Carol Hui – Executive Director, Long Term Business; ● Mr Simon Lam – Executive Director, General Business; ● Mr Stephen Po – Executive Director, Market Conduct; and ● Mr Raymond Tam – Executive Director, Policy and Development. We look forward to working closely with them to ensure a smooth transition to the new regulatory regime for the benefit of all stakeholders. As regards the collection of policy levy for the IIA, the second draft note was released in mid-May. We are now inviting comments from Members on the latest version of the proposed collection mechanism (Circular Ref: Mv056/17).
Risk Based Capital (RBC) Framework
OCI invited us to provide comments on the draft Life Prescribed Capital Requirement (PCR) under the Quantitative Impact Study (QIS). The Task Force on the subject has thus organized an Open Meeting on 4 May 2017 to discuss the areas of potential controversy contained in the draft. Representatives from 19 for Life Insurance Members (LIMs) participated. On 9 May 2017, the Task Force submitted an industry response to OCI setting out our key concerns. Also, we recommended adopting a simpler approach by defining stress-based for all risk modules, indicating a date of transition to the new standard, taking into account the impact and complexity of implementing IFRS 17 promulgated by the International Accounting Standards Board, etc.
Hong Kong Applied Science and Technology Research Institutes (ASTRI). It has the full suppor t of the Commissioner of Insurance who has kindly written to encourage all authorized insurers in Hong Kong to join the CISP for effective exchange of alerts or warnings on cyber-attacks, better preparedness of insurers and timelier actions to strengthen the preventive, detective and recovery processes. For details, please refer to Circular Ref: Mv057/17.
At the first Consultative Group meeting held on 9 May 2017, the Food and Health Bureau (FHB) briefed industry representatives (including four from the HKFI) and stakeholders from different interest groups on the core objectives and work plan of the VHIS consultancy studies. Our Healthcare Task Force already met FHB’s appointed consultant and reiterated industry’s concerns over key issues relating to the proposed VHIS product approval process, definition of products eligible for tax concessions, case-based exclusions for pre-existing conditions, guidance note on regulatory compliance, communications with the public, etc. To ensure the smooth launching of the Scheme and secure maximum buy-in from the members of the public, we will work closely with FHB’s consultants in search of workable solutions.