ComplianceOne Insurance Newsletter – Nov 2024
The topics discussed in this monthly newsletter are as follows:
1. Asian Insurance Forum 2024: Navigating Global Volatility
2. CPD Course for Insurance Brokers on Grandfathered ILAS Policies
IA News Updates
1. Asian Insurance Forum 2024: Navigating Global Volatility
The IA's annual flagship event, the Asian Insurance Forum (“AIF”), will be held on 10 December 2024, themed “Rising to the Challenge amidst Global Volatility.”
This event will feature prominent speakers from the insurance and financial sectors, as well as regulators and government officials from Hong Kong and around the world. Keynote speakers include Mr. John Lee, Chief Executive of the HKSAR, Mr. Paul Chan, Financial Secretary of the HKSAR, and Mr. Jonathan Dixon, Secretary General of the IAIS.
Panel discussions will cover:
Global supervisory priorities.
Strengthening the headquarters economy.
Insurance solutions in wealth management, along with a dialogue with IA leadership.
Participants can register online to join the forum virtually for free. For more details and the full program, visit the AIF 2024 website.
2. CPD Course for Insurance Brokers on Grandfathered ILAS Policies
The IA published the circular on 8 November 2024 which provides additional details on the CPD course required for compliance with the Grandfathering Arrangements. From 1 October 2024, licensed insurance brokers offering advisory or discretionary investment services for ILAS Policies must meet new competency requirements as per the Practice Note.
Grandfathering Arrangements:
Licensed insurance brokers unable to meet the new requirements by 1 October 2024 can continue servicing policies issued before this date (Grandfathered ILAS Policies) until 31 July 2027, provided they comply with the Additional CPD requirement. This entails completing 2 additional CPD hours annually in the following periods:
1 August 2024 to 31 July 2025
1 August 2025 to 31 July 2026
1 August 2026 to 31 July 2027
Firs run of the Course for Insurance Brokers on Grandfather ILAS Policies
The Hong Kong Securities and Investment Institute (“HKSI”), in collaboration with the Professional Insurance Brokers Association (“PIBA”) and The Hong Kong Confederation of Insurance Brokers (“CIB”), is launching the first Course on 26 November 2024, which fulfills the Additional CPD requirement under the Grandfathering Arrangements established by IA.
Market News
3. SFC Announces First Batch of Brokers for Wealth Management Connect Pilot Scheme and Insights on Insurance Connect
SFC has announced that 14 LCs are now eligible to participate in the Cross-boundary Wealth Management Connect Pilot Scheme (“WMC”) in the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”). This scheme enhances connectivity between Hong Kong and Mainland China, offering new business opportunities for financial services.
Impact on Insurance Brokers and Future of Insurance Connect
The success of the WMC is seen as a positive indicator for the potential implementation of similar mechanisms, such as the anticipated Insurance Connect. This would allow Hong Kong and Macau insurance companies to sell insurance products directly to Mainland residents without establishing local branches. However, current Mainland regulations conflict with this approach, and a pilot for Insurance Connect is not yet feasible.
Licensed insurer(s), insurance broker companie(s) shall see the WMC as a best practice to get ready for the eventual establishment of Insurance Connect. By familiarizing themselves with cross-boundary operations and regulatory requirements, they can smoothly transition once the Insurance Connect is approved.
SIGNIFICANCE:
Despite the delay in Insurance Connect, preparations for establishing insurance after-sales service centers in Nansha and Qianhai are in their final stages. These centers will offer policy management and claims services for Hong Kong policyholders in the GBA.
[End of ComplianceOne Insurance Newsletter – November 2024]
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