Monthly Brief 2020/03 EN

Mar 2020

Issue No.276

New Member

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warm welcome to China Reinsurance (Hong Kong) Company Limited for joining HKFI as a Life Insurance Member.

2020/2021 Council Elections and AGM

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he General Insurance Council (GIC) and Life Insurance Council (LIC) are conducting elections for the next term. Please send in your votes to our Honorary Auditor KPMG by 15 April 2020. The elected councilors will assume office when the new term starts on 29 April 2020 after the AGM is held.

International Financial Reporting Standard 17 (IFRS 17)

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e at the HKFI has spent considerable efforts in lobbying for a postponement of implementing IFRS 17 in Hong Kong. We are thus glad to learn that the International Accounting Standards Board (IASB) has decided on 17 March 2020 that the effective date of IFRS 17 would be deferred to the annual reporting periods beginning on or after 1 January 2023. The IASB’s decision to defer the effective date by two years to 2023 would enable insurers around the world to implement IFRS 17 at the same time and should be beneficial for investors, insurers and other stakeholders.

Extended Temporary Facilitative Measures for Life Insurance Products

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he Professional Standards Working Group (PSWG) under LIC has worked closely with the Insurance Authority (IA) to broaden the framework for non-Face-to-Face (non-F2F) distribution channels to cover more products in the life business for the second phase of temporary facilitative measures (TFM).

We are pleased to note that the IA announced on 27 March 2020 to cover additional protection type products, including term policies and certain refundable or renewable policies that provide insurance protection, in the TFM. Insurers and intermediaries are now allowed to distribute these life insurance products through non-F2F methods until 30 June 2020.

Going forward, we will continue working closely with the IA on the introduction of more non-F2F / virtual onboarding measures.

COVID-19 – Public Education on Insurance

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ince the launch of our thematic website “Insurance Dashboard on COVID-19” (https://www.hkfi.org.hk/covid19) last month, this all-in-one portal has received positive feedback from various organizations and industry bodies.

To maximize the use of the portal and ensure we are able to reach out to the wider public, we have launched a campaign to publicize the Insurance Dashboard via advertisements on bus bodies and seatbacks, broadcasting of a radio segment, online promotion in digital and social media platforms, etc. Apart from the educational tips about insurance coverage in the context of COVID-19, the Dashboard also provides a comprehensive list of alleviation measures offered by our Member Companies. So far 53 Members have contributed information to the Dashboard. If you would like to display the relevant infomation from your company, please contact the Secretariat (Circular Ref: Mv011/20).

Aside from public education, we are also mindful of the mental well-being of the public, particularly the children and their parents during the prolonged school suspension period. Together with the Hong Kong Jockey Club Charities Trust, we sponsored the University of Hong Kong’s Hong Kong Jockey Club Centre for Suicide Research and Prevention to launch the “Dr Zafari mailbox”. By running this, we hope to provide support and counselling services to the general public to help them through this trying time. Check out the details here.

Amendment Bills on ILS and GWS

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e are glad to note that the Government has gazetted two insurance amendment bills on the Insurance Linked Securities (ILS) and Group-wide Supervision (GWS) on 20 March 2020. The taskforces on ILS and GWS have been working closely with the Financial Services and the Treasury Bureau (FSTB) and IA on the topics to ensure the legislative proposals are fit for purpose and address the legitimate concerns of our industry. We welcomed the introduction of the amendment bills and issued a media release on the same day.

The bills are being introduced into the Legislative Council for the first reading. We will continue working with the authorities to promote and uplift the status of Hong Kong in the international financial arena.

Research Paper on Tax Measures by FSDC

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e are pleased to note that the Financial Services Development Council (FSDC) published a paper entitled “Insuring Hong Kong’s Future – Tax Recommendations to Enhance and Grow Hong Kong’s Insurance Industry” on 30 March 2020. The paper suggested a number of tax measures which are very much aligned with what the HKFI has been advocating for, such as extending the applicability of preferential tax rates to additional classes of general insurance business. We are also supportive of the extension of tax concession to a wider range of medical, critical illness and life protection products. We believe that it will help encourage Hong Kong people to make provision for healthier lives and plan for retirement, and thus benefiting our society at large.

In response, we have issued a media release on the same day to support the recommendations by FSDC. We will continue working closely with FSDC, FSTB and IA to promote Hong Kong’s insurance market and reinforce our status as the regional insurance hub.

IA Provisional Statistics

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n 13 March 2020, the IA released the 2019 provisional statistics with some highlights on data relating to the recent social events. Seeing the concerns on the impact of the social movement and the epidemic, we issued a media statement on the same day to respond to the IA statistics as well as providing a forecast regarding the business influence amidst outbreak of COVID-19. We will continue strengthening our communication with the media and public on all fronts.

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Launch of First e-CPD Training for Insurance Industry

o support continuous learning in the midst of pandemic, we are launching the first e-CPD curriculum on ethics management through case studies and interactive online learning activities. One of the modules is introduced by the Independent Commission Against Corruption while the other one on Voluntary Health Insurance Scheme is produced

by HKFI. Both of them are conducted in Cantonese with Chinese subtitles. More e-Modules are in the pipeline for industry practitioners to continue their learning and earning of the required e-CPD hours. Act now to encourage your agents / staff to enroll at https://event.hkfi.org.hk!

Suspension of IIQE

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n 27 March 2020, we have issued a circular (Ref: Mv033/20) to all members on some updates related to Direct Licensing Regine (DLR) and suspension of Insurance Intermediaries Qualifying Examination (IIQE). In view of current outbreak of COVID-19 and the social distancing measures introduced by the Government, VTC has extended the suspension of IIQE accordingly. For any enquires relating to IIQE or if you wish to set up in-house examination(s) with VTC after the resumption of IIQE, please contact VTC in accordance with the details in the above-mentioned circular.

Best Practice on Use of Genetic Test Results

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he Life Operations & Risk Management Working Group (LORMWG) under LIC met the Equal Oppor tunities Commission (EOC), Food & Health Bureau (FHB), and clinical geneticists earlier this year with candid exchange of views.

Based on their comments and the feedback received from Member Companies (Circular Ref: Mv015/20), the LORMWG has revised the Best Practice on Use of Genetic Test Results which is now undergoing legal review. Meanwhile, we are also preparing various sets of FAQ for insurers, clinical practitioners and the general public to provide more clarity and transparency.

Hong Kong Insurance Market Research

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he results of the long-awaited Hong Kong Insuranc e Mar ket Research have been circulated to Members on 18 March 2020 (Circular Ref: Mv025/20). The Net Promoter Score (NPS) of the entire insurance industry has been on the rise with improved customer satisfaction at different stages of the insurance journey.

We believe the 97-page report can provide Members with a thought-provoking and forward-looking analysis when formulating future business strategies. For companies that have subscribed for the branded syndicated reports, they will soon receive the more detailed and in-depth analysis.

HKFI Annual Reception 2020

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wing to the widespread of COVID-19, the Annual Reception originally scheduled for April will be canceled.

We look for ward to catching up with you in our other corporate events later this year!

Membership News Change Company Name ● Old Mutual International Isle of Man Limited (Life Member) changed to Quilter International Isle of Man Limited Change of Authorized Representative ● Cigna Worldwide Life Insurance Company Limited (Life Member) and Cigna Worldwide General Insurance Company Limited (General Member) – Mr Julian Mengual ● XL Insurance Company SE (General Member) – Mr Jamie Chambers HKFI Membership As at 27 March 2020, the HKFI have 85 General Insurance Members and 52 Life Insurance Members.