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Following is the speech by the Permanent Secretary for Financial Services and the Treasury (Financial Services), Miss Au King-chi, at the Cocktail Reception of the Hong Kong Confederation of Insurance Brokers (CIB) today (November 6):
Patrick (Chairman of the CIB, Mr Patrick Chan), ladies and gentlemen,
I am delighted to be with you this evening.
You'll recall that I last spoke to you in February, at your Spring Dinner. Since then, we have been active in a number of areas designed to help Hong Kong business - your business - flourish.
Last time, I informed you of our plan to provide tax concession for captive insurers' business in offshore risks. Following the legislative amendments in March, we have stepped up our efforts to promote Hong Kong as an ideal place for setting up captives. With support from the industry, we have organised seminars and briefings for Mainland enterprises in Beijing and Shanghai. Just two weeks ago, we put on a seminar in Beijing, together with the China Overseas Development Association, to help Mainland enterprises "go overseas", especially in leveraging the captive insurance platform that Hong Kong would provide. I'm pleased to note that many Hong Kong-based insurance company representatives took part and met with the state-owned enterprises. I hope these efforts have stimulated their interest in setting up a captive in Hong Kong to enhance their risk management. With your support, we will continue to reinforce our promotional efforts in seeking business opportunities, while keeping our regulatory regime updated for the sustainable development of the insurance market.
Regarding the Bill to establish an independent Insurance Authority (IIA), we are working closely with the Legislative Council, as my colleague, Mr Eddie Cheung, noted earlier today at the CIB Annual Conference. We hope to complete the legislative process by mid-2015. Thanks to the input provided by various market players, including insurers, agents and brokers, the Working Group on Transition has laid a solid foundation for the transition to the IIA. We are particularly grateful to the CIB for its valuable advice.
There is still some discussion regarding the regulatory regime for insurance intermediaries under the Bill. We all share the goal of establishing a credible and fair regime. With that in mind, I'm sure that we'll find a consensus, one that will carry our insurance industry to the next level.
That, of course, will necessitate more than a credible regulatory infrastructure. It will also require a continuous supply of talent and the continuing professional development of our industry practitioners. After all, insurance is a knowledge-based industry. It demands proficiency in a wide variety of areas, from underwriting and claims management to professional brokerage.
The Financial Secretary has asked our bureau to formulate recommendations for the development of professionals and skilled personnel in the financial services sector. The insurance business is a key component of financial services. And we have held focus group discussions with the CIB and other stakeholders to gauge the talent training needs of the insurance industry. Based on this, we have adopted a three-pronged strategy.
First, we should enhance public education to promote awareness of the wide range of career opportunities in the insurance industry. This includes making the career paths of various functional jobs more visible. Second, we should encourage young people to gain on-the-job exposure to the insurance industry as early as possible. That will help them understand how the knowledge and skills acquired in their studies can be applied in practice. Third, we should lend more support to insurance practitioners in their pursuit of continuous skill upgrading. We will soon follow up with the industry in mapping out detailed recommendations. It's essential that we work together to ensure that the recommendations will meet our evolving market needs.
And our industry would need to act swiftly to such evolving needs. Consider the occupation of roads in certain areas of our city over the past month and more. However you feel about the protest, it has challenged our rule of law and brought disruption to our everyday life. It has also caused considerable loss of business to some trades and in some areas of the city. That reality has also tested the responsiveness of the insurance industry. Indeed, I know that some of you are busy providing timely advice to those seeking the best insurance protection for any loss of their businesses. Helping clients manage such unusual risks is just one example of the critical role insurance brokers play - not only in the economy but in society as a whole.
Ladies and gentlemen, people often say that the world is getting riskier than ever before. Even so, with our insurance industry's reputation for bespoke and highly expert service, we can manage the most complex risk to keep our economy in shape. By many measures, Hong Kong has undergone unexpected changes recently. I believe Hong Kong will weather this storm well and rise stronger thereafter.
As some of you know, I am retiring from the civil service next month, after some 32 years with the Hong Kong Government. The years, I must say, have flown by like months, sometimes weeks - as things sometimes do when you enjoy, and find meaning, in what you do. This is an opportune time for me to thank all of you for your unfailing support, and valuable assistance, over the years.
Thank you very much.
Ends/Thursday, November 6, 2014
Issued at HKT 19:16
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