Nov 2017
Issue No.250
2017 Extraordinary General Meeting (EGM) & Christmas Cocktail Party
The EGM will be held at 5:30 pm on Wednesday, 13 December 2017 at HKFI's conference room to consider and approve the new subscription fee scales (please refer to Circular Ref: Mv118/17 for details). This will be followed by our traditional Christmas Cocktail Party. We look forward to seeing you all there.
Direct Licensing Regime for Insurance Intermediaries
Collection of Premium Levy for Insurance Authority (IA)
The Working Group on Direct Licensing Regime for Insurers will start collecting premium levy on behalf •
Fit and Proper Criteria – minimum entry requirements;
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Continuing Professional Development – minimum CPD hours, core subject and e-learning;
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Code of Conduct – acting in the best interests of clients.
of the IA from 1 January 2018 onwards. Irrespective of which remittance approach is adopted, insurers are reminded to communicate with their policyholders at least once a year on premium levy through any channel, e.g. premium collection notices, email and SMS. For details, please refer to the Note on Collection of Levy on Insurance Premium issued by the IA in November 2017.
Given the different business nature of insurance agents and brokers, the Working Group has set up two separate Discussion Groups to look at the regulatory requirements for agents and brokers. HKFI and IARB will be represented by Mr Mike Lee and Mr Robert Pang respectively at the Discussion Group for insurance agents.
Coincidentally, the General Insurance Council (GIC) has recently written to the IA on the calculation of levy and cap for endorsement premiums. There is considerable discrepancy between the interpretation of the IA and the market practice of general insurers and we have raised this with the IA and requested further clarification.
Insurance Intermediaries has invited us to comment on the first batch of codes / guidelines:
IA’s Industry Secondment Programme (ISP)
Initiated by the IA, the ISP aims to tap professional expertise and experience from the industry to assist in some
specific areas of work. They include Risk-based Capital Regime, InsurTech, and/or Research on market development in the Greater Bay Area. Each job assignment will last initially for one year and may be extended subject to mutual agreement between IA and the relevant parties.
We have set up a committee with Chief Executive Mr Peter Tam as the convenor to nominate suitable candidates. Once the specific requirements are confirmed by the IA, we will write to all Members to invite nominations.
To bring Members up to date on the latest version of the VHIS framework, we
invited the Food and Health Bureau and its consultants to brief Members and answer questions on 15 November 2017. The session was well attended with 114 representatives from 45 Member Companies. Participants raised a raft of questions and concerns relating to the terms and conditions and the benefit schedule of the latest VHIS. We have submitted our views and concerns to the FHB for their consideration. Meanwhile, we are providing input on the VHIS service guidelines. IA is the industry’s lead regulator. One of the key issues will be defining the respective and proper roles of FHB and IA in administering the relevant guidelines.