Monthly Brief 2023/02 EN

Feb 2023

Issue No.308

2023-2024 Budget

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he Hong Kong Federation of Insurers (HKFI) welcomes the various measures with relevance to insurance announced in the Budget delivered by the Financial Secretary on 22 February 2023 and issued a media statement on the same day. We appreciate the Administration’s acceptance of our recommendation to extend the Pilot Programme to Enhance Talent Training for the Insurance Sector for another three years. We also welcome the two-year extension of the Pilot Insurancelinked Securities Grant Scheme. These two initiatives will help nurture our industry talents and boost the supply of insurance professionals to support our market development, as well as uplifting the competitiveness of Hong Kong as an international insurance hub.

In addition, we are supportive of the introduction of the mechanism to promote the re-domiciliation of regional companies to the territory. Re-domiciliation of insurance companies to Hong Kong is a vote of confidence to Hong Kong as an insurance hub.

We hope to see this proposal come into fruition in the near future.

The HKFI will continue speaking for our industry and seeking to enable more policyholders to have adequate protection and retirement savings in place while enjoying tax concession.

Fighting Insurance Fraud – the Power of the Collective

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e have arranged our solution provider Shift Technology back in town to conduct a face-to-face session for our Members. In addition to updating us on the latest development of the Insurance Fraud Prevention Claims Database (IFPCD), the Shift team has also provided an account of the antifraud efforts of and what has been achieved by our counterparts elsewhere. One of the most notable conclusions is that anti-fraud performance increases through the power of the collective and an industry-wide database.

At the same event, Insurance Authority’s (IA) Head of Market Conduct and General Counsel Mr Peter Gregoire spoke on the importance of insurers handling and settling claims fairly and promptly and, at the same time, having in place effective measures of combating fraudulent claims. The IA has subsequently issued a circular on 27 February 2023 to align its regulatory approach with the IFPCD. If your company is yet to be a Member of the IFPCD, please contact our Project Team at claimsdb@hkfi.org.hk for more info. Let’s join forces and fight crime!

Engagement Session on PPS

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n 7 February 2023, the engagement session on Policy Holders’ Protection Scheme (PPS) with the Financial Services and the Treasury Bureau (FSTB) and the IA was well attended by close to 100 industry members. FSTB's Deputy Secretary (Financial Services) Ms Estrella Cheung and IA's Associate Director (Policy and Development) Mr Tony Chan elaborated the policy intent and latest design of the proposed PPS. Taking the chance, Members also expressed their views and concerns and made constructive recommendations on this important subject.

We subsequently launched a consultation and Member Companies are welcome to send us comments for our consolidation of an industry submission for the Bureau’s consideration. For details, please refer to our circular (Circular No.: Mv008/23).

Proposed Insurance Industry Climate Charter

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ne of the milestones of the HKFI’s consultancy study on green insurance is to formulate and promote a climate charter for the industry. To enhance members’ understanding towards our endeavors, our Task Force on Green Insurance, chaired by Mr Eric Hui, had organized two briefing sessions in English and Cantonese respectively for member companies on 14 February 2023. On the occasions, the appointed consultant shed light on the overall ideas of the proposed charter. IA’s Mr Tony Chan, also shared the latest climate risks regulatory development trends with participants.

Members’ feedback is instrumental for us to put forward the initiative. We are conducting a survey and Member Companies are welcome to send us their opinions by completing the survey (Circular No.: Mv014/23).

Knowledge Building for Fire Insurers Briefing of Fire Investigation Cases happened in Industrial Building

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he purpose of the Fire Safety (Industrial Buildings) Ordinance is to provide better protection from the risk of fire for occupants and users of, and visitors to, certain kinds of industrial buildings.

In order to help Members learn more about the Ordinance, the Fire Insurance Association (FIA) invited the Fire Services Department (FSD) to share with the participants in the above briefing held on 16 February 2023 about the fire investigation cases happened in industrial buildings. The FIA will continue its collaboration with the FSD in combating fire safety in the future.

Visit to Happy Valley Underground Stormwater Storage Tank

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ith the assistance of the Drainage Services Department (DSD), the FIA also organized a visit to Happy Valley Underground Stormwater Storage Tank on 24 February 2023.

Thanks to the kind arrangement by the DSD, representatives from 14 Member Companies have a better idea on some technical knowledge such as flooding prevention and sewerage.

The second round of visit is scheduled for early March.

HKFI Media Luncheon

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n 7 February 2023, HKFI Chairman Ms Winnie Wong, Deputy Chairman Ms Orchis Li and Chief Executive Ms Selina Lau hosted a lunch for a group of reporters from the local media. We touched on various hot industry topics such as insurance in the context of climate change and catastrophic loss, brain drain, GBA development, etc. Going forward, we will continue strengthening our communications with the mass media through various channels.

Sharing at Event by Mainland Media

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n 16 February 2023, HKFI Chairman Ms Winnie Wong also spoke at the webinar “The new opportunities of Hong Kong FinTech in 2023” organised by the InvestHK and the Mainland media 36Kr Chuhai. Ms Wong shared insights on InsurTech and how Mainland InsurTech companies use Hong Kong as a launch pad to expand to the international markets.

Elite Talent Development Programme Gathering

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KFI Elite Talent Development Programme was launched in 2021 with an aim of passing down the business wisdom and profound experience of insurance veterans to the younger generation. A gathering was held on 22 February 2023 for the mentees and mentors to meet up and compare notes. We have also had HKFI Chairman Ms Winnie Wong to share with the mentees her experience and insights of the insurance industry. It was a joyful event with lots of energy and lively discussions.

Caring Organization

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orporate Social Responsibility (CSR) is an integral part of our corporate culture. Since 2005, HKFI has been awarded the status of Caring Organization by the Hong Kong Council of Social Service. This year, we have again been accredited the ‘15 Years Plus Caring Company Logo’, in recognition of HKFI’s commitment in caring for the community, employees and the environment over the past years. We will keep up with our efforts on CSR in the years ahead!

Membership News Change of Authorized Representative General Insurance Member: Trinity General Insurance Company Limited – Mr Ken Lai Tak Mo HKFI Membership As at 28 Feb 2023, the HKFI has 81 General Insurance Members and 54 Life Insurance Members.