Jul 2024 Issue No.324
Legislative Proposals on Re-domiciliation
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he HKFI welcomed the consultation conclusion and legislative proposals on the introduction of a company re-domiciliation regime released by the Government on 3 July 2024 and issued a media statement on the same day. We have been advocating for a fast-track legal mechanism to facilitate international insurers to re-domicile in Hong Kong and set up a Special Project Team earlier to support the work of the Government including providing legal and technical advice. Insurance companies re-domiciling to Hong Kong signify a strong vote of confidence, which would also boost Hong Kong's headquarters economy. Once the re-domiciliation regime is in place, the industry is poised to be the first and primary use case.
Counter Fraud Drives Insurance Fraud Prevention Claims Database (IFPCD)
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ith the rapid surge in travel activities since 2023, we are seeing a need to proactively launch the travel line of business (LoB) to curb the opportunistic and network fraud schemes targeting this sector. In this connection, we have arranged the IFPCD solution provider Shift Technology to conduct a briefing in mid-July for more than 16 travel insurers. A survey is now underway to ascertain the data availability among Members. Also taken place was the user training session for IFPCD users on the key features, scenarios and alert qualification for the motor and medical LoB. At the same time, we are pleased to welcome two new members joining the medical LoB at the IFPCD. With the potential launch of the travel LoB, we are expecting more travel insurers joining our team to fight insurance fraud. Please contact the project team for details at claimsdb@hkfi.org.hk. Collaborative Efforts in Combating Fraudulent Insurance Claims
Insurance Industry Helps Combat Phonebased Scams
hrough the coordination of the Hon Frankie Yick Chi-ming, along with Hon KP Chan and Hon PL Chan, the HKFI has been engaged in collaborative discussions with various stakeholders on combating fraudulent claims.
he HKPF’s Commercial Crime Bureau (CCB) has observed a concerning increase in the number of fraudsters impersonating staff from insurance companies and engaging in phone-based scams. In light of this recent trend, senior officials at the CCB invited representatives from the Life Insurance Council (LIC) to exchange insights on anti-scam promotion and explore how to leverage the extensive agent network to help spot potential scams, warn customers, and provide them the information needed to avoid becoming victims.
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Previously in June 2024, a cross-departmental meeting took place among the Accident Insurance Association, Financial Services and the Treasury Bureau (FSTB), Insurance Authority (IA), Social Welfare Department, Hong Kong Police Force (HKPF) and Hong Kong Taxi Council to address the persistent and formidable challenges faced by the insurance industry and the taxi trade in combating fraudulent claims and syndicated fraud. A follow up meeting was held specifically with the HKPF and the taxi trade on 18 July 2024 to identify possible measures to tackle such illegal activities. In response to our concerns and recommendations, the HKPF has been very forthcoming and reassured us their readiness to work with the insurance industry and taxi trade in the fight against fraud.
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The discussion was constructive and we are actively considering possible measures to support the CCB in combating scams. They include co-organizing training / workshop for intermediaries’ capacity building and creating joint public awareness campaigns via insurers’ network.