May 2023 Issue No.311
Greetings from HKFI Chairman
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am honoured to be the HKFI Chairman for this new term 2023/2024. As we emerge from the pandemic, the next 12 months hold both challenges and opportunities. With your unwavering support and insightful guidance, we are confident in our ability to continue providing high-quality services and professional support to our Members. I look forward to working closely with you in the year ahead.
Orchis Li HKFI Chairman
Nominations for Task Forces, Working Groups and Steering Committees
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ver the years, thanks to the collaborative efforts of various Task Forces, Working Groups and Steering Committee formed under the Governing Committee (GC), General Insurance Council (GIC) and Life Insurance Council (LIC), we have been able to accomplish numerous critical initiatives for our industry. To sustain this positive momentum and encourage more industry practitioners to join our cause, we are welcoming nominations from all Member Companies to support ongoing and new initiatives in the upcoming term. Together we can continue to drive progress and advance our shared goals for the greater good of our industry and community at large. For details, please refer to our circular (Circular Ref: Mv042/23).
Amendment Bill on RBC
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n April, the Government published the Insurance (Amendment) Bill 2023 (Amendment Bill) in the Gazette to amend the Insurance Ordinance and other relevant legislation for implementing the Riskbased Capital (RBC) regime. The Financial Services and the Treasury Bureau (FSTB) has introduced the Amendment Bill at the Legislative Council (LegCo) and a Bills Committee with the Hon K P Chan as chair and the Hon P L Chan as deputy chair has been set up to review it clause by clause. In principle, we support the implementation of RBC regime in Hong Kong which will help to strengthen Hong Kong's position as the International Risk Management Centre. In fact, our two Task Forces on RBC under GIC and LIC have worked closely with the IA over the past few years to support this initiative and resolved many technical issues. For the current clause by clause review exercise at the LegCo, we have engaged an independent lawyer to look at the Amendment Bill from the legal perspective. We have also gathered views on tax issues from the two Task Forces on RBC. All comments and observations received were incorporated into formal submissions to the Bills Committee which included an overview and enquiries concerning specific clauses.
Unilateral Recognition Insurance Products for Northbound Travel for HK Vehicles
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tarting from 1 July 2023, Hong Kong private car owners or drivers entering Guangdong under the Northbound Travel for Hong Kong Vehicles (the Scheme) can procure unilateral recognition insurance products from Hong Kong insurers. This means that car owners can ride on their Hong Kong statutory motor insurance policy to purchase coverage for the Mainland compulsory liability motor insurance and/or the selective top-up coverage in Hong Kong. To facilitate Hong Kong car owners / drivers to take out unilateral recognition insurance products, we have launched a dedicated webpage with information on the 16 insurers offering these products and the relevant claims procedures. At the same time, an interactive session was conducted by the Accident Insurance Association last week where the Hon P L Chan, the Hon K P Chan and IA’s Executive Director Mr Simon Lam shared with more than 80 representatives of motor insurers the latest update and points to look out for when communicating with prospective customers.
Use of AI and Chatbots
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n mid-May, IA’s Head of Market Conduct Mr Peter Gregoire shared his views on the deployment of chatbots and artificial intelligence (AI) from the regulatory lens in the latest issue of Conduct In Focus. As technology continues to play a more significant role in enhancing business operations and customer experiences, it has become increasingly prevalent in our sector. However, it is crucial to balance the innovation with compliance to ensure that the integration of technology is done in a responsible and sustainable manner. To address this evolving topic proactively, Chairmen of the InsurTech Task Forces and Legal Working Groups under GIC and LIC, and the Professional Standards Working Group under LIC will join force to discuss the relevant issues, identify common goals and plan for the next steps. We will soon convene an internal meeting to kick start this joint initiative.