Sep 2019
Issue No.270
Completion of Historical Mission
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September 2019 is a milestone for the insurance industry of Hong Kong. It marks the completion of HKFI’s self-regulatory organization (SRO) functions and also the beginning of the new insurance regulatory era under the Insurance Authority (IA).
We are extremely and forever grateful to the serving and past chairmen and members of Insurance Agents Registration Board (IARB) and the Appeals Tribunal. Their dedication and exemplary service has made our SRO regime most robust and effective. It has earned the trust and support from insurers, intermediary bodies and the insuring public and helped strengthen the position of Hong Kong as an insurance hub. A celebratory drinks party will be held later this year to commemorate the glorious completion of our SRO regime, pay tribute to all those who have contributed to its success and mark the beginning of a new chapter of the HKFI.
Transition to the Direct Licensing Regime (DLR)
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e have dedicated considerable time and resources to ensure a smooth and seamless transition, including conducting 40 consultations relating to DLR, organizing 11 townhalls on various topics, transfer of physical and electronic registration / compliance / appeals records to the IA, etc. In addition to these important tasks, IARB’s Registration Team has also completed processing 24,000 new applications for registration received between May and August 2019, which is 42% higher than the normal rate. Albeit the complexity of the subject and the multiple tasks to be accomplished within a very stringent time line, we are pleased to say that through meticulous planning and close collaboration with the IA, our efforts have paid off with very satisfying results.
DLR on Long Term Business
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wo Codes of Conduct and 10 sets of Guidelines (GLs) have been issued under the new DLR, among which, six on long term business were previously under the purview of the Life Insurance Council (LIC). We supported the IA in revamping these GLs since November 2018 and together we have completed 14 consultations in less than a year’s time.
To facilitate Life Insurance Members’ (LIMs) compliance, IA would be issuing Interpretation Notes for these GLs. LIC’s Special Committees (SC) (Circular Ref: Mv095/19) and respective Working Groups (WG) were tasked to provide input to the contents and assist in future modifications / fine-tuning of these Notes. Industry discussions were held throughout September and meetings with IA’s officers responsible for the respective GLs will take place in October. We will then conduct townhalls on these GLs to enhance LIMs’ understanding of the GLs. Please stay tuned.
IMF – FSAP Team’s visit
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he Financial Sector Assessment Program (FSAP) team of the International Monetary Fund (IMF) visited Hong Kong in mid-September 2019 for a comprehensive and in-depth analysis of Hong Kong’s financial sector.
As one of the key stakeholders, HKFI was invited to discuss a number of issues pertinent to key risks and risk-based capital requirements of the insurance sector. We also expressed views on key impacts of IA’s establishment on insurance regulation and supervision, InsurTech developments, other regulatory initiatives including the development of group wide supervision and policyholder protection and resolution planning.
Insurance Fraud Prevention Claims Database (IFPCD)
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hile the Project Team is busy working on the first three lines of business (LoBs), namely, motor, medical and personal accident, the Executive Committee has decided to launch the fourth LoB – travel insurance – in the coming months due to the recent spike in alleged fraud cases relating to travel insurance. The onboarding timeline and annual fee will be announced very soon. If you are interested in joining the above mentioned LoBs, please contact the Project Team at 2861 9392.