On Nov. 29, HKIA spoke on power of tech, and future regulatory plans.
HKIA Executive Director, Policy and Legislation Clement Lau delivered a keynote address on the transformative power of technology and data-driven innovation.
It stated this speech was given at the 22nd Appointed Actuaries Symposium.
Innovations Observed
Some notable observations from the market include the shift towards digital interactions in the value chain for improved efficiency and customer experience, as well as deployment of data analytics for deeper insight into customer behaviors.
The increasing adoption of technology is also enhancing insurer's work capability.
System automation and task migration to the Cloud helps streamline processes.
AI will also enable actuaries to enhance modelling through machine learning and predictive analytics, with the ability to analyze vast amount of data quickly.
Future Regulatory Plans
HKIA said it will publish a White paper on federated learning, in 2025, to promote data analytics without privacy concerns based on new or alternative data sources.
In response to the escalating cyber threats in the digital era, HKIA will be launching a Cyber resilience assessment framework under the Guideline on cybersecurity to strengthen insurers’ cybersecurity and operational resilience within institutions.
As a next step, the HKIA will conduct an industry survey to better understand the market landscape, and to facilitate the development of the ethical use of AI.
Actuaries are encouraged to explore the ecosystem partners and harness the potential of data and technology for enhancing internal capabilities, while driving innovation.
Dec. 2024 Framework Introduced
On Dec. 11, 2024, HKIA published revised Guideline on cybersecurity (GL20), under Insurance ordinance; GL20 introduces Cyber resilience assessment framework (CRAF).
Plus, provides prescriptive guidelines for risk assessment; establishes control principles to assist authorized insurers in implementing effective cybersecurity frameworks.
The revised GL20 will come into effect on Jan. 1, 2025.
