Oct 2020
Issue No.282
Best Practice on Standardizing Underwriting Questionnaire
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he Medical Insurance Association (MedIA)’s Policy Standardization Sub-Committee started reviewing the underwriting questions in the medical insurance market in 2019 to simplify the questionnaire template and define the scope of health-related information that consumers are obliged to disclose.
Thanks to the tireless efforts of the Sub-Committee and the vital input from our Members and stakeholders including the Voluntary Health Insurance Scheme Office, Insurance Authority (IA), Consumer Council and Insurance Claims Complaints Panel, we have introduced the Best Practice on Standardizing Underwriting Questionnaire for Individual Indemnity Hospital Insurance Plans (SUQ) on 6 October 2020 for Members’ voluntary adoption (Circular Ref: Mv110/20). Meanwhile, the HKFI is at the final stage of developing a training programme to familiarize intermediaries with the SUQ and the rationale behind. If you are interested in offering such training to your frontline sales force, please contact our Training Unit at 2861 9399. At the same time, we will strengthen public education to encourage wider adoption of the SUQ for enhanced transparency and improved customer journey.
Insurance-linked Securities (ILS)
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he Insurance (Amendment) Bill 2020 on ILS was passed by the Legislative Council in July 2020. The next stage of preparatory work, including formulation of implementation details and drafting of the subsidiary legislation, is underway. In this connection, the IA has launched a six-week public consultation on the draft Insurance (Special Purpose Business) Rules to tie in with the expected implementation of the new regulatory regime (Circular Ref: Mv096/20).
On 6 October, the Task Force on ILS under HKFI met virtually with the Financial Services and the Treasury Bureau and IA and had a fruitful exchange of ideas on the draft rules and their proposed fees applicable to special purpose insurers (SPIs) relating to the issuance of ILS. Going forward, the Task Force on ILS will continue working closely with the authorities and provide technical support to facilitate the issuance of the ILS in Hong Kong and development of our ILS market.
Formation of IA's Disciplinary Panel Pool
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he IA has responded positively to the suggestion of the industry and formed a Disciplinary Panel Pool (DPP) as part of its new disciplinary mechanism for licensed insurance intermediaries and authorized insurers.
We are pleased to note that six members formerly served at the Insurance Agents Registration Board (IARB) and Appeals Tribunal will continue providing professional input to and supporting the regulation of insurance intermediaries under the direct licensing regime. For the full list of the DPP members, please visit: https://www.ia.org.hk/en/enforcement/ Disciplinary_Panel_Pool/DPP.html
Investment-Linked Protection Plan (ILPP)
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n 28 September 2020, we issued a circular (Circular Ref: Mv105/20) and briefed Life Insurance Members (LIMs) of an ILPP’s product chassis being developed amongst the IA, Securities and Futures Commission (SFC) and the Task Force on ILPP. Whilst we are still ironing out some of the product chassis’ particulars, i.e. the parameters of premium holiday and number of investment options applicable, we are actively resolving the remaining items with our regulator. In addition to the product framework, the Task Force on ILPP has also included a sample Key Facts Statement (KFS) and Investment Options Brochure (IOB) for ease of communication with the IA. Stay tuned for more details next month!