b'Insurance Regulatory | AsiaIn terms of regulatory supervision, the CBIRC hasThis VO platform is one of the latest facilitations authorized its Shenzhen Branch and Guangzhouoffered by the HKFI. Through close collaboration with Branch to conduct product approvals or filings, andthe IA, stringent compliance and technical assessments regular supervision of GBA Medical Insuranceon the selected solutions were conducted to make Policies in accordance with the nationwide insur- certain all regulatory requirements in terms of security, ance law. No new set of law has been published touser access rights, auditing can be fulfilled and strong cater for these policies.levels of consumer protection are maintained.OUTLOOK Insurers, who opt to adopt this pre-vetted platform in their sandbox application for the distribution of The Insurance Connect scheme is of course along-term insurance policies via video conferencing welcome move to promote the Hong Kong insur- tools, will not be required to go through the techni-ance industry against the global economic plunge incal assessment of the solution. The overall process 2020. With a population of 70 million coupled withhas thus been streamlined and the turnaround time economic growth in GBA cities in the recent yearswould be considerably shortened.and the emergence of a greater concentration of high net worth individuals, the prospect of theThe IA has extended its temporary facilitative cross-border insurance and wealth managementmeasures for non-face-to-face distribution of specific services with the GBA is tantalizing for Hong Kongprotective insurance products to December 31, insurers. The impact of the COVID-19 pandemic and2020. Products covered by the temporary facilitative its impact on travel restrictions have also highlightedmeasures include QDAP, VHIS products, term life the need for cross-border insurance services. Thatpolicies and refundable policies without substantial said, progress in 2020 was slow.savings component or renewable policies without cash value that provide insurance protection.A possible reason for the slow progress could be attributed to the complexity brought by the differ- Insurers and intermediaries are required to make ence in legal systems between Hong Kong, Macauupfront disclosure at the point-of-sale and provide and the Mainland China. The transfer of personalan extended cooling-off period of no less than 30 data, for example, poses substantial regulatorycalendar days for the protection of policy holders.challenge to the Service Centers. Further, Hong Kong insurers also face challenges in competingSINGAPORES CYBER FOCUS CREATESwith their counterparts in China who have a home- PATH FOR (RE)INSURERScourt advantage, not to mention being more2019 was a significant year for cybercrime in adapted to the use of insurtech and fintech. Singaporethe city saw a 50% rise, primarily in e-commerce scams, phishing and malware targeted COVID-19-Related at the financial sector.With COVID-induced new norms of remote working, HONG KONG HKFI LAUNCHES VIRTUALthe Monetary Authority of Singapore has heightened ONBOARDING PLATFORM TO FACILITATEcyber surveillance and circulated new advisories to DISTRIBUTION OF LIFE INSURANCE PRODUCTS(re)insurers ensuring a ramp up of their defenses.The Hong Kong Federation of Insurers (HKFI) has launched its Virtual Onboarding (VO) platformExperts have advised carriers to work with companiesa solution to facilitate the distribution of long- to introduce relevant new initiatives and products term insurance products via video conferencing inbeyond just issuing a one-time claims payout.the midst of COVID-19. 86 GLOBAL INSURANCE INDUSTRY|YEAR IN REVIEW 2020'