Monthly Brief 2020/05 EN

May 2020

Issue No.278

Greetings from HKFI Chairman

F

irst of all, I would like to thank you for your staunch support over the years. The next 12 months will be full of unprecedented challenges. We will continue engaging Members by various means and facilitate the sustainable development of our industry. With your support and guidance, I am confident the HKFI will continue to provide quality service to its members to the best of its ability in the years ahead.

New Life Member

A

warm welcome to ZA Life Limited for joining HKFI as a Life Insurance Member (LIM).

Nominations for TF/WG/SC

T

he majority of our technical work is supported by various task forces and working groups set up under the Governing Committee, General Insurance Council and Life Insurance Council (LIC). To maintain the transparency of our work and encourage more volunteers from the industry in support of the various ongoing and new initiatives of the HKFI, we have invited nominations from all Members and are pleased to receive overwhelming response from practitioners.

Mr Eric Hui HKFI Chairman

Commencement of Guidelines 25, 27-31

T

he LIC and Medical Insurance Association wrote to the Insurance Authority (IA) in March requesting an extension on the compliance of Guidelines 25 - 31 in view of the operational hindrance caused by the pandemic. In response, the IA issued a circular on 25 May 2020 addressing the industry’s concerns. With the exception of Guideline 26 (ILAS), IA noted the disruptions to the industry caused by the pandemic and will exercise flexibility when determining if requirements have been obser ved. We are delighted that IA has responded positively in this trying time to allow the industry a reasonable buffer in full compliance until 31 March 2021.

Together, we fight the virus – e-CPD courses available at half price

W

hilst the pandemic is less severe, we are well aware that our insurance intermediaries are still subject to very challenging business environment. HKFI has thus reduced the enrolment fees by 50% to offer quality e-training at affordable rate and encourage greater adoption of online learning at one’s own pace and own time.

Intermediaries / practitioners signing up for the two ethics management training e-modules before 30 June 2020 will enjoy the special rate (https://event.hkfi.org.hk). For enquiries, please contact our Training Unit via email: training@hkfi.org.hk / tel: 2861 9302.

Best Practice on the Use of Genetic Test Results

T

he LIC’s Life Operations & Risk Management Working Group (LORMWG) started reviewing the Code on Genetic Testing (Code) in 2017. In view of the need to cater for the Hong Kong Genome Project, the revision exercise was extended.

Thanks to the tireless efforts of the LORMWG in the past 30 months and the vital input from our Members and various stakeholders including the Food and Health Bureau, the Steering Committee on Genomic Medicine, expert clinical geneticists, IA, Equal Opportunities Commission and Office of the Privacy Commissioner, we are able to replace the Code by the Best Practice on the Use of Genetic Test Results (Best Practice).

On 14 May 2020, the HKFI announced the issuance of the Best Practice and the launch of the dedicated website (https:// www.hkfi.org.hk/genetictest/en/index.html). Moving forward, the LORMWG will conduct periodic reviews and monitor the advancement on genomic medicine to ensure the Best Practice remains relevant and up-to-date to the practice of our Members.

Profits Tax Concessions for the Insurance Sector

T

he relevant amendment bill for the profits tax concessions for the insurance sector was discussed at the Legislative Council’s House Committee on 8 May 2020. A Bills Committee will be set up to scrutinize the Bill.

Updates on Virtual Onboarding

W

e received positive feedback from LIMs on the proposed industry framework for virtual onboarding. Based on the requirements/suggestions received from Member Companies in the past weeks, we are now planning the specifications with possible vendors. At the same time, we remain in constant communication with IA on a set of principles of the pre-vetting framework. A new sub-committee (SubCom) under LIC’s InsurTech Task Force has been set up to review the principles and assess the technology capabilities and compliance of these vendors.

Webinar on Cybersecurity

C

OVID-19 is a major catalyst for digitization. It is important for our Members to remain vigilant about cybersecurity. Whilst Guideline on Cybersecurity (GL20) was effected on 1 January 2020, on its half year mark, HKFI invited IA’s Associate Director of Policy & Development, Mr Tony Chan as a keynote speaker to provide a recap on the core principals and requirements as a reminder. We have also invited local experts in cybersecurity as panelists to promote cyber threat awareness through firsthand sharing and case studies.

Standardized Underwriting Questionnaire for Medical Insurance Products (SUQ)

T

he Medical Insurance Association is close to finalizing the SUQ but there remain some technical issues in relation to digital underwriting. A meeting was thus set up between VHIS Office and insurers for better alignment on how to apply the standardized medical underwriting questionnaire digitally. The discussion has solved most of the concerns. The bilingual version of the SUQ will be circulated to Members and comments on the Chinese translation will be solicited.

Belt and Road Insurance Exchange Facilitation (BRIEF)

T

he IA launched the BRIEF platform to promote the exchange of intelligence, forge alliances, and facilitate networking among relevant stakeholders. In addition to insurers, reinsurers, captive insurers and insurance brokers, the IUMI Asia Hub has also joined the platform as a member. We aim to effectively help connect BRIEF with IUMI and the marine insurance community, to unleash synergies in exploiting prospects arising from the Belt and Road Initiative.

Voluntary Exercise for Quantitative Impact Study (QIS) 3.1 for Long Term Business under Risk-Based Capital Framework (RBC)

W

ith the support of the Actuarial Society of Hong Kong, the LIC took the initiative to recommend the IA that a new voluntary exercise for QIS 3.1 should be conducted. The objective is to assist the IA in gauging the impact of updated quantitative data reflecting the current low interest rate environment and equity market volatility prior to the launch of the RBC regime. Proposed deadline for voluntary submission by participating member companies is 31 July 2020.

The Hong Kong Insurance Awards 2020

W

e are delighted to launch the Hong Kong Insurance Awards 2020 with our partner South China Morning Post. Send in your applications before the submission deadline on 31 July 2020!

This year, we are introducing the Awards with more exciting elements, including a new category relating to COVID-19. Details are available on our official website at www.hkfi.org.hk/hkia. For enquiries, please contact us at 2565 2494 / 6100 7273.

Membership News

Change Company Name ● Sompo Japan Nipponkoa Insurance Inc. (General Member) changed to Sompo Japan Insurance Inc.

Change of Authorized Representative ● Bank of China Group Insurance Company Limited (General Member) – Mr Lin Weijiang ● Target Insurance Company Limited (General Member) – Ms Joyce Lau ● Transamerica Life (Bermuda) Ltd. (Life Member) – Ms Hazel Etherington ● Zurich International Life Limited (Life Member) & Zurich Life Insurance (Hong Kong) Limited (Life Member) – Mr Geoffrey Au HKFI Membership As at 27 May 2020, the HKFI has 86 General Insurance Members and 54 Life Insurance Members.