Jul 2017
Issue No.247
Collection of Levy for Insurance Authority (IA)
More than 300 participants from over 90 Member Companies attended a briefing on the above subject on
21 July 2017. Thanks to the detailed explanations provided by IA Executive Director Mr Raymond Tam and his team and officials from the Financial Services and the Treasury Bureau (FSTB), Members now have a clearer understanding of how the collection mechanism should operate (Circular Ref: Mv084/17).
Going forward, the IA will provide an application form for Members to opt for the preferred remittance approach. A summary of the key principles on levy collection will also be made available to Member Companies in August. Members should direct further enquiries, if any, to the IA at levy@ia.org.hk. With the Insurance (Levy) Order coming into effect on 1 January 2018, it will be important for policyholders to understand that it is their legal obligation to pay such a levy. In this connection, the IA is formulating a proper communication plan. To this, we at the HKFI will provide all the necessary input / support and make sure that the IA’s publicity programme is rolled out in time to facilitate insurers / intermediaries’ timely communication with their customers.
Risk-based Capital (RBC) Framework
The IA has launched the first Quantitative Impact Study (QIS 1) for the development of the RBC Regime last Friday. We are pleased to note that the IA has taken into account the technical advice and professional input from members of the Industry Focus Groups nominated by the HKFI.
The data to be collected during QIS 1 will form a vital basis for developing a RBC regime which is viable and practicable to market players. To facilitate Members’ understanding of the QIS 1 exercise and completion of the relevant template, the HKFI will be organising three briefing sessions in August for General and Life Insurance Members (Circular Ref: Mv083/17). Member Companies are encouraged to sign up early for this briefing.
Holistic Consumer Protection Mechanism
We are one big step closer to perfecting our consumer protection regime! On 27 July 2017, the Insurance Claims Complaints Bureau (ICCB) passed the resolution to approve and adopt the new Articles of Association (AoA) at its General Meeting. The new AoA empowers the ICCB to (i) handle non-claim related disputes; (ii) introduce the new mediation services; and (iii) restructure its General Committee, the governing board, by bringing in non-industry chairman and a majority of non-industry members to enhance its independence. As a next step forward, a nominating board will be set up by HKFI’s Governing Committee to look for the right candidates to join the new General Committee. The new General Committee is expected to be formed in Q4 2017 together with the change of name from ICCB to “Insurance Complaints Bureau” (ICB). Details of the mode of operation and procedures for the new mediation services are being worked out. There will be an industry consultation before the official launch of the new mediation services tentatively scheduled for Q1 2018.