Monthly Brief 2021/07 EN

July 2021

Issue No.291

Formation of TF/WG/SCs 2021/2022

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e continued to receive overwhelming support from our Member Companies with over 220 nominations altogether this year. After thorough consideration by respective Chairmen, all task forces (TFs) / working groups (WGs) / steering committees (SCs) are duly formed for 2021/2022. 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: Mv058/21).

Establishment of Centre for Green and Sustainable Finance

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n 15 July, the Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) has announced the next steps to advance its collaborative strategies including the establishment of the Centre for Green and Sustainable Finance (GSF Centre). The GSF Centre will serve as a focal point and facilitate cross-sectoral interaction among financial regulators, Government agencies, industry stakeholders and academia.

The HKFI supports this new move of the Steering Group and appointed six industry representatives to join the GSF Centre’s working groups on Capacity Building and Data respectively to develop strategies and roadmaps. Among others, Task Force Chairman Mr Eric Hui will represent HKFI as Co-chair of the Data Working Group to help steer and formulate strategies.

Going forward, we will continue working hand-in-hand with our regulators and other stakeholders in moving the green initiatives forward and facilitating the sustainable development of our industry.

Focus Group Sharing by Commerical Crime Bureau

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n July, the media reported that the Police has arrested a man for allegedly attempting to defraud an insurance company. This case was reported through the fraud reporting platform the HKFI established with the Commerical Crime Bureau (CCB) of the Hong Kong Police in 2012.

The decisive action taken by the CCB not only successfully prevented the perpetrator from claiming unlawful insurance compensation but also sent a strong message to the public – insurance fraud is a crime.

To enhance our fraud reporting platform, a focus group workshop was held on 28 July. Through this and the future interactive sessions, we hope to strengthen Police’s understanding on how insurance operates while the law enforcement officers will help our claims specialists grasp the basic knowhow on investigation and collection of evidence.

CPD Penalty Framework of Insurance Authority

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o provide transparency on its disciplinary approach to Continuing Professional Development (CPD) non-compliances, the Insurance Authority (IA) issued a circular on 23 July and published the Penalty Framework for Non-compliance with CPD Requirements. Members are reminded to ensure all your appointed licensees be fully aware of the penalties to be imposed by the IA for non-compliance with the CPD requirements. Please refer to our circular for details (Circular Ref: Mv063/21).

Town Hall Briefing for Motor Insurance

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axi insurance premium has once again become a much discussed topic at various news channels and at the Legislative Council (LegCo). We spoke at various occasions to provide a balanced view on the subject supported by objective facts and figures. The Accident Insurance Association (AIA) has formed a core group and attended the three meetings held by the Joint Subcommittee on Issues Relating to Insurance Coverage for the Transport Sector of the LegCo. We took stock of the current situation and suggested a raft of practical measures to address the turn the situation around. Thanks to the support from the Subcommittee Chairman the Hon Frankie Yick and our LegCo Member the Hon K P Chan, our proposals were taken positively by various Government bureaus and departments. We will continue advocating for more constructive changes to create a better ecosystem.

To bring Members up to speed on the above and various issues surrounding motor insurance, we organized a townhall on 6 July. In addition to the update on the LegCo meetings by AIA Chairman Ms Fanny Fung, IA’s Executive Director (General Business) Mr Simon Lam spoke on the topics of Profitability and Sustainability of Motor Business and Cross-boundary Motor Insurance Arrangement while HKFI Chief Executive Ms Selina Lau and GIC Councillor Ms Joyce Lau also shared on HKFI’s two InsurTech projects IFPCD and MIDAS respectively.

Revisiting Fulfillment Ratios Methodology

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ith intentions to increase transparency and alignment of industry information, the IA reached out to HKFI to revisit the Methodology on Fulfillment Ratios (FR) under Guideline on Underwriting Long Term Insurance Business (Other than Class C Business) (Appendix I) (GL16).

The initiative’s first phase includes a website focusing on consumer educational information on FR and the second phase on refining the related requirements.

The IA provided the draft contents of the webpage and invited our industry feedback. In this connection, the HKFI has consolidated and submitted to the IA the comments from both actuarial and communications perspective, in addition to some suggestions on the wording.

Insurance Fraud Prevention Claims Database

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he Insurance Fraud Prevention Claims Database (IFPCD) audit assessment conducted by Deloitte is now in progress. The consultant recommended that a cybersecurity expert should be present at the Steering Committee which is currently chaired by Mr Edward Chan, SC. In this light, the Governing Committee has appointed Dr K P Chow, Associate Professor of the Department of Computer Science of the University of Hong Kong, to join the Steering Committee and provide expert advice.

CPD Webinar Series on GBA Legally Speaking: All You Need to Know About the GBA We have organized a nine-episode CPD webinar series “Legally Speaking: All You Need to Know About the GBA”. The first episode, namely, “Overview of Insurance Law of China”, was held on 21 July with attendees from more than 30 Member Companies. Our sincere thanks go to Professor Shao Tingjie who shared his first-hand experience and knowledge in a lively yet informative manner.

The second episode scheduled for mid-August will focus on the corporate law and operation of insurance company in the Mainland (Circular Ref: Mv061/21).

GBA - Tax Awareness Sharing At the same time, the webinar namely “GBA - Tax Awareness Sharing” was held on 30 July with over 44 attendees from Members. A vote of thanks to the speakers of PwC Hong Kong for their informative sharing.

Sharing on InsurTech Initiatives

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e are proud to present HKFI’s signature InsurTech initiatives – MIDAS and IFPCD – to our peers around the globe. In addition to sharing our experience in launching the IFPCD with the Indonesia Life Insurance Association at its COO Summit in June, we joined The Digital Insurers’ webinar and presented MIDAS in July with positive response.

CPD Training Courses for the 2021/2022 Assessment Period

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he new CPD assessment period will begin in August, HKFI Training Unit organizes various new topics of training program for Members, their intermediaries and staff, to enhance their insurance or business related knowledge. If you need our assistance in customizing new

courses for your agents / staff, please contact us at Tel: 28619399 or email training@hkfi.org.hk.

HKFI Annual Report 2020/2021

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he latest HKFI Annual Report has been published!

It provides an over view of what we have accomplished in the areas of upholding industry professionalism, contributing to the community, communicating with stakeholders, serving and supporting our Members over the past challenging 12 months amidst the COVID-19 pandemic.

Check it out by scanning the QR code or visit https:// www.hkfi.org.hk/hkfi-ar-2020/AnnualReport202021.pdf.

All You Need to Know about Insurance

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e are thrilled to report that the newest addition on Travel Insurance has been released! The book sets out the various types of travel insurance and the protection they provide, points to note when taking out a policy and filing claims, misunderstanding, etc. In doing so, we hope to strengthen people’s correct understanding of insurance as an effective tool in dealing with the risks they encounter during outbound trips. The book is now available in the Joint Publishing and Commercial Press bookstores. Go and grab some copies before stock runs out!

Summer Greetings········································

W ··················································· e will have a break in August and come back in September. Wishing you all a refreshing and healthy summer break in the midst of the pandemic!

Membership News Change of Authorized Representative ● General Insurance Member : Cigna Worldwide General Insurance Company Limited – Mr Jonathan Spiers ● General Insurance Member : The Tokio Marine and Fire Insurance Co. (HK) Ltd – Ms Sandy Suen ● Life Insurance Member : Cigna Worldwide Life Insurance Company Limited – Mr Jonathan Spiers HKFI Membership As at 31 July 2021, the HKFI has 86 General Insurance Members and 52 Life Insurance Members.