Monthly Brief 2021/01 EN

Jan 2021

Issue No.285

Change of Office Bearers

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ollowing the resignation of Mr Jimmy Poon from the Governing Committee (GC), Ms Sally Wan of AXA General Insurance Hong Kong Limited will represent the General Insurance Council (GIC) at the GC. We sincerely thank Mr Poon for his substantial contributions to the HKFI and the industry over the past decade!

Incidentally, a by-election of the Life Insurance Council (LIC) was run to fill a casual vacancy and Mr Damien Green of Manulife (International) Limited has been elected as a Councillor for the remaining term (Circular Ref: Mv001/21).

Insurance Fraud Prevention Claims Database (IFPCD)

I Survey on GBA Customer Service (CS) Centers

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n setting up of the physical CS centre(s) and online platform for GuangdongHong Kong-Macao Greater Bay Area (GBA), we conducted a member survey in January to ascertain the view and expectation of HKFI Members, so as to chart our next step forward.

The results revealed that Member Companies are supportive of HKFI’s proposal on acting as the coordinator and administrator for the physical CS centre(s) to lease office counter to Hong Kong insurers. The majority of Members are also interested in joining the online CS platform operated by HKFI for HK insurers to provide after-sales services to their policyholders in GBA. While we are awaiting the directives of the Mainland regulatory authorities, we would continue working closely with the Insurance Authority (IA) and our counterparts across the border on this important project to facilitate further integration into the GBA.

nitiated by the Hon K P Chan, the Legco Research Office has conducted a thematic research on insurance fraud. Being one of the key stakeholders, HKFI shared with the research team our experience in fighting the uphill battle against fraudsters and suggested possible ways to combat such illegal acts. We are pleased to note that the IFPCD is featured in the research report entitled “Measures to tackle insurance fraud in selected places”.

We are determined to enhance our capability in fraud detection through, inter alia, the IFPCD. In this connection, it is our delight to announce the launch of the medical line of business in February 2021. Through sophisticated Artificial Intelligence (AI) deep learning, the algorithm will detect different fraud scenarios and raise alerts on suspicious medical insurance claims for further

investigation. For insurers who wish to join force to prevent fraud, please contact our Project Team at claimsDB@hkfi.org. hk.

Establishment of Task Force on Early Adoption of Risk-based Capitial (RBC) Framework

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hile all our Members are busy preparing for the RBC regime according to the timeline, a number of companies are open to exploring implementing RBC framework ahead of schedule. After some coordination with the IA and ascertaining the need from our Members, the LIC has set up a new Task Force on Early Adoption of RBC Framework. Whilst the legislation process is yet to be confirmed, this Task Force will serve to help those Life Insurance Members (LIMs) who are ready and capable of an early adoption of RBC to prepare ahead and provide aligned communication with the IA.

Surveys on InsurTech Adoption and Virtual Onboarding (VO) Platform

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e have recently completed the joint survey with IA on InsurTech adoption. Thanks to our Member Companies for taking the time to respond to this important exercise, we now have a more profound understanding of the current InsurTech ecosystem amongst many of our Members and some very enlightening data for us to chart the way forward. We will work closely with the regulators, InsurTech companies and our think-tank InsurTech Task Forces under LIC and GIC to make the best use of the findings.

Simultaneously, we also conducted a survey amongst the LIMs to understand the current VO situation, including the customer adoption rate and case success rate via this distribution channel. Having collected the feedback from LIMs, we are communicating with the IA on how to increase the adoption rate, sustainability and flourishing of VO.

Green Insurance

e-Learning for Insurance Intermediaries

ollowing the formation of Task Force on Green Insurance under HKFI, our work on supporting the growth of green and sustainable finance in Hong Kong does not stop. To understand the green initiatives undertaken by Member Companies and their views on green insurance, we conducted a member survey in January (Circular Ref: Mv143/20). The survey results will help us better position our Task Force in spearheading the important mission on green and ESG. Through this exercise, we are also looking to expand the Task Force and build more capacity to support the work of various subgroups under the Task Force.

L aunch of GL24 and CPD Requirements for Transitional

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Period

To support continuous learning of insurance intermediaries, we have launched the above eCourse last December aiming at providing a comprehensive review of Online Module on Guideline on Continuing Professional Development for Licensed Insurance Intermediaries (GL 24) and CPD requirements for the transitional period issued by the IA. Up to date, there are 3 online modules available in the HKFI learning platform, making a total of 1.5 CPD hours on “Ethics or Regulations”. e-CPD for SUQ

Asian Financial Forum (AFF) 2021

The e - CPD cur riculum for Standardizing Under writing Questionnaire for Individual Indemnity Hospital Insurance Plans (SUQ) “Demystifying Medical Underwriting” is in the final stage of production and expected to be launched in Q1 2021.

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Addressed by a seasoned medical doctor from a reinsurer, the course provides a comprehensive overview of the SUQ and the rationale behind each and every question. The use of layman terms which are easy to grasp will help intermediaries better understand the questions and communicate better with their customers during the application process.

oincidentally, HKFI Chairman Mr Eric Hui joined the panel discussion on “Climate Change Risks and Opportunities for Insurance” at the AFF 2021 coorganised by HKSAR Government and Hong Kong Trade Development Council on 19 January 2021. The session was addressed by IA Chairman Dr Moses Cheng. Mr Hui moderated the debate and had an insightful exchange of views with industry leaders and experts on how the insurance industry is responding to climate change risks and capturing the oppor tunities for insurance in the transition to a sustainable economy.

We at the HKFI are dedicated to promoting e-learning among practitioners for better learning outcome. A promotion package of HKFI’s eCourses will be launched soon to provide a competitive price for our industry members / intermediaries to enroll for any course on the list of eCourses. Stay tuned!

Research Paper “Assessment of the damages and direct economic loss in Hong Kong due to Super Typhoon Mangkhut in 2018”

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Hong Kong Industry Market Research

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ur consultant Nielsen will begin the survey fieldwork in the coming weeks. The research framework and pre-subscription details have been circulated to Members (Circular Ref: Mv137/20). If you are interested in subscribing for more in-depth research findings, please contact the HKFI Secretariat at committee@hkfi.org.hk.

ith the consolidated typhoon statistics from Member Companies, we are able to work with the Hong Kong Observatory (HKO) on the subject of high impact weather loss.

We are delighted to learn that this first ever HKO-HKFI research paper has been accepted and published in the international journal Tropical Cyclone Research and Review (https://doi. org/10.1016/j.tcrr.2020.11.001).

Albeit the academic and scientific nature of the paper, one message comes across clear – extreme weather hazards bring about damage and economic loss, and insurance is an effective tool to mitigate such loss. Going forward, we will continue working with the HKO and explore further collaboration for better risk forecast and more effective risk mitigation.

Membership News Change of Authorized Representative ● BOC Group Life Assurance Company Limited (Life Member) – Mr Cheung Chi Kau, Alfred ● Chubb Insurance Hong Kong Limited (General Member) – Mr Douglas Gregor White ● Dah Sing Insurance Company (1976) Limited (General Member) – Mr Leung Wai Sum HKFI Membership As at 31 January 2021, the HKFI has 87 General Insurance Members and 52 Life Insurance Members.