At least 80 more staff are required by the newly established regulator, the Insurance Authority (IA) of Hong Kong.
Speaking at the 12th Asian Insurance CFO Summit 2018 in Hong Kong, IA CEO John Leung revealed that the regulator needs quickly to beef up its talent bench through an aggressive human capital attraction drive.
Since its establishment in June 2017 the new regulatory body has already recruited 50 staff but needs at least 80 more to bring it up to strength and cope with the increasing demands it faces across licensing, regulation and disciplinary work.
The strengthening of the insurance regulatory regime is central to the efforts of Hong Kong to further establish its brand and reputation as a leader in the industry in Asia.
The new recruits will also help IA with its three main areas of focus:
- Implementing the new direct licensing regime for insurance intermediaries that is due to take effect by mid-2019
- Working with industry stakeholders in helping implement the new policyholders’ protection scheme
- Developing the new risk-based capital regime for Hong Kong.
The demands on the regulator ahead of the implementation of IFRS17 has also highlighted weaknesses in the system including a shortage of actuaries within the sector in Hong Kong which in turn is leading to wage inflation, the lack of appropriate IT solutions available in the market to cope with the new accounting requirements and the competing demands of overlapping regulatory initiatives for RBC and IFRS17.
Mr Leung also pointed to the establishment of the HK Insurance Implementation Support Group as a forum for concerned parties to discuss common problems in a supportive environment.
He finished his presentation at the conference by highlighting the efforts to date of IA to ensure that Hong Kong remains at the forefront of the insurance industry in Asia through its adoption of forward-looking strategies when working on the adoption of blockchain, China’s Belt and Road Initiative and the Greater Bay initiative.
The 12th Asian Insurance CFO Summit 2018 is organised by Asia Insurance Review, sponsored by EY and finishes today at the Island Shangri-La in Hong Kong.