Oct 2017
Issue No.249
Collection of Levy for Insurance Authority (IA)
Starting from 1 January 2018, the IA will collect premium levy from policyholders through insurance
companies. It is of paramount importance for millions of policyholders to understand their legal obligation to pay such a levy. We are pleased to note that the IA has set up a dedicated webpage, rolled out TV and radio announcements and issued a leaflet providing handy information. For details, please visit www.ia.org.hk/en/ aboutus/role/financial_arrangements.html.
Direct Licensing Regime for Insurance Intermediaries
Regulated activities conducted by salaried staff
They are targeting to implement the above regime within two years. A Working Group has been restructured recently to discuss the relevant draft rule / codes / guidelines for the regulation of intermediaries and the transfer of data and records from the SROs. HKFI and the Insurance Agents Registration Board are represented on the Working Group to provide input to ensure a smooth transition to the new regime.
Reed Smith Richards Butler and the set of scenarios put together by Member Companies, we have proposed a list of back office duties in broad categories for exemption from the licensing requirement. The list is now being reviewed by the IA and the general consensus is to adopt a principle-based approach. We will keep you posted on developments.
The IA officially came into operation on 26 June 2017. In the light of the legal advice provided by our counsel
Centralised Insurance Claims Database for the Prevention of Fraud (DB)
The Project Team conducted two briefings for the IA CEO and the Privacy Commissioner and their senior executive
teams in mid-October 2017. In addition to showcasing the results of the Proof-of-concept exercise and the fraud detection capability of our appointed vendor Shift Technology, we also presented the data privacy protection framework of our DB. We are fine tuning the proposed framework to take account of the constructive response and feedback from the regulators.
We remain on target to launch phase 1 of our DB in the first half of 2018 covering motor, medical and personal accident lines of business.
Digitizing motor cover note
After months of consultation, the Food and Health
Bureau (FHB) has come up with a draft Standardised Policy Terms and Conditions for VHIS. While we are pleased to note that the FHB has taken into account some of our concerns and suggestions, there are still outstanding issues which needed to be resolved, e.g. regulatory authority, migration arrangement, etc.
The FHB has kindly agreed to brief Members on details of the latest VHIS framework and answer questions. Information of the briefing will be made available soon.
Subsequent to the cracking down of the bogus website
selling fake cover note late last year, the Commercial Crime Bureau, the IA, the Transport Department and HKFI met to find ways to prevent / eliminate such illegal act and facilitate application / renewal of vehicle licences. It was agreed that the problem could well be tackled with the help of technology.
The Accident Insurance Association has thus invited suitable vendors to build an electronic platform for relevant parties to authenticate cover note. Stay tuned for more updates on this InsurTech project!
Membership News HKFI Membership As at 31 Oct 2017, the HKFI has 87 General Insurance Members and 48 Life Insurance Members.