Speech by Ms. Annie Choi, JP,
Commissioner of Insurance,
at the Annual Spring Dinner of the CIB on 10 March 2011
Good Evening, Ronald, KP, ladies and gentlemen,
Before I came to this dinner, several members of the industry who are also present
this evening asked me if I would come up with another mathematical equation to
analyze the insurance industry, after the Pythagoras Theorem that I talked about in
November. Well, honestly I do not have that many mathematical theorems readily
available. In any event, I intend to be less serious this evening, as I am certain that
we would be having lots of serious matters to talk about in the coming months.
During the Chinese New Year break, I have been doing quite a bit of facebooking.
While hopping from one facebook account to another, I came across a very
interesting page on Chinese zodiacs, which forecasts what the Year of the Rabbit
holds for each one of us. So I decided to share with you some of my findings.
Year of the Rabbit
First, for the Year of the Rabbit in general. It reads “The year will be a quiet, placid
year, very much welcomed and needed after the ferocious, fast-moving and rather
dramatic year of the Tiger. We should all get some rest after all the battles of the
previous year. Overall, the days should be relatively peaceful, even though
disagreement will still be inevitable. The Chinese Rabbit year favours peaceful
solutions, so there will be a feeling that all is not lost and that hope is still very much
alive. We can all act with discretion and agree on reasonable compromises without
too much difficulty.” So this must be a cause for optimism in regard to our
discussions on the establishment of the IIA, as well as the proposal on the
Policyholders’ Protection Fund, which will be released shortly.
“Money can be made without too much labour.” Wow, easy money! Good news for
everyone here. On a macro level, this is certainly true for the Asian economy.
With the US Federal Reserve Board’s QE 2 (not the ship), there is quite a bit of
money floating around, which in turn would lead to asset bubbling and inflation.
We are monitoring the situation closely, as this clearly has implications for the local
economy. On a micro level, I am not quite sure if this forecast of “easy money” also
applies to the OCI. You are aware that LegCo blocked Government’s funding
application yesterday, so I do have a legitimate concern whether OCI would be able
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to continue functioning on 1 April. Let us keep our fingers crossed.
“Law and order will be lax. Rules and regulations will not be rigidly enforced.” I
certainly raised my eyebrows on reading these two lines, and I hope they are not
suggesting anything about my office or CIB or the other two self-regulatory
organizations. However, on reflection, I think they perhaps mean that with all
industry players doing their part – meaning insurers complying with all the prudential
regulatory requirements, and frontline intermediaries complying with all the codes of
conduct – then it would not be necessary for OCI or CIB to enforce anything.
CIB – A Rooster
After reading the forecast for the Year of the Rabbit, I did a bit of research on CIB.
CIB was incorporated on the 11 February 1993. The Chinese New Year of 1993 fell
on 23 January, so CIB just missed the chance of becoming a Monkey, and became a
Rooster instead. The website describes roosters as follows: “The Rooster is always
popular, extravagant, creative and brutally honest.” Ronald, do these descriptions
fit CIB or you, the Chairman?
So what would be the prospect for Roosters in this Year of the Rabbit? The forcast
starts with this sentence: “The Year of the Rabbit brings increased fortune for
business and career Roosters. There will be opportunities for you to increase your
income or connect to sources of extra revenue.” I am sure there is no better forecast
than this one, which means not only good news for all those in CIB, but also good
news for the industry as a whole.
“From March onwards, there will be chances to join forces with others at work or in
projects.” As Ronald has just said, CIB would be working closely not only with my
office, but also with PIBA, IARB and other industry bodies, on a whole range of
industry issues like commission disclosure, the IIA, enhancement of professionalism
etc etc. So carry on with your good work, Ronald.
Now, the last bit is most interesting. It says “When difficult issues arise, remain
calm and patient, and focus on dialogues to reach a consensus. Remember that all
the hard work you do now will pay dividends in 2012.” I am most delighted to hear
this reiteration of the need to seek compromises. And I do expect continued
dialogues between my office and all quarters of the industry on the many issues of
common concern.
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The Commissioner
Now of course, I would look up my own fortune in the coming year. I am very
honest – I am a Tiger. In fact, since my son was four, he had been complaining that
his mother was a cross-breed between a lion and a tiger – as I am a Leo born in the
Year of the Tiger.
Back to the future. “After the overly stressful developments of the previous year, the
Year of the Rabbit will find all Tigers refreshed and positive. There will still be
minor hassles at work and less-than-easy situations in your endeavours, but nothing
you can’t handle if you focus your energies. By the summer, you will have achieved
a lot.” Well, what more can I ask for? After reading such a reassuring and
encouraging forecast?
OK, so much for fortune-telling. To conclude, the insurance industry has had a very
prosperous and eventful year. We have all been working very closely and diligently,
and have achieved quite a lot in matters like the IIA consultation, consumer protection
measures for the sale of ILAS products, the CIES, RMB policies, building’s 3rd party
liability coverage, commission disclosure …… etc etc. There are more in the
pipeline, I can assure you. But if we work in collaboration in a collegiate and
constructive spirit, I am sure we will achieve as much, or even more, in the coming
year.
Let me take this opportunity to thank Ronald and his colleagues in CIB for their hard
work and support in the past year. And I wish all of you a happy, healthy and
prosperous Year of the Rabbit.
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