June 2020
Issue No.279
Formation of TF/WG/SCs 2020/2021
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hanks to the overwhelming support from our Member Companies, we have received over 250 nominations altogether this year. After thorough consideration by respective Chairmen, all taskforces (TFs) / working groups (WGs) / steering committees (SCs) are duly formed for 2020/2021. You may refer to our website for the latest list of members. We thank you all for your community spirit and readiness to devote your time and expertise to support our work (Circular Ref: Mv071/20).
Policyholders' Protection Scheme (PPS)
HKFRS 17 Implementation Townhall
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In view of the complexity of the exercise and the huge amount of work required, we reflected our Members’ difficulties in returning the data by the designated deadline. The IA, having considered our concerns, has decided to extend the deadline to 30 September. We appreciate such an extension and believe that it will allow sufficient time for insurers to ensure the quality of the data return (Circular Ref: Mv066/20).
To help Member Companies prepare for HKFRS 17 ahead of its implementation, we will organize a townhall meeting in July for the IA and the Hong Kong Institute of Chartered Public Accountants (HKICPA) to update Members on the HKFRS 17 survey results and the latest development of IFRS 17 respectively. This will be followed by the professional consultancy firms’ presentation on key implementation challenges. There will also be a marketplace for Members to interact with these consultants and take a closer look at their packaged solutions / tools. Watch out for our updates soon!
he Financial Services and the Treasury Bureau (FSTB) and Insurance Authority (IA) plan to start the legislative procedure of the PPS at the Legislative Council and expect to begin the discussion in 2021. As such, all insurers are requested to provide an updated assessment on the proposed PPS.
hile the HKFRS 17 will not become effective until the annual reporting periods beginning on or after 1 January 2023, our work at the HKFI has never stopped.
Usage of Alleviation Measures on COVID-19
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n January 2020, Member Companies started introducing various proactive and innovative measures after the first confirmed case of COVID-19 was reported in Hong Kong. We made an inventory on the self-initiated alleviation measures and additional benefits offered by insurers and consolidated them into the “Insurance Dashboard on COVID-19” for public information.
Recently, we conducted another round of survey to understand the utilization of these alleviation measures and additional benefits. The results showed that, inter alia, over 32,000 travel insurance policies have been granted refund, representing premiums of over HK$9.6 million; nearly 140,000 policyholders applied for the premium grace period extension and were offered to defer the receipt of payment of annualized premiums exceeding HK$8.4 billion. All these figures were captured in a press release issued on 12 June and widely covered by the press. It reflected that insurers’ considerate offers have been put into substantial use and once again demonstrated the pivotal functions of insurance in the society.
COVID-19 Seminar Series
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OVID-19 has posed unprecedented challenges to all sectors of the economy and the insurance industry is no exception. To better understand the impact the pandemic has on our business and what insurers could do to better position themselves, the Technical Associations under the General Insurance Council will be organizing a seminar series entitled “Coexisting with COVID-19 – what’s next for insurers in HK?”. Experts with different professional background will be invited to share with Members the latest information and insights on various insurance lines of business amidst the pandemic. The first one on marine insurance will be held in July. Stay tuned!