The Insurance Authority (IA) today (18 September 2023) rolled out the Open Application Programming Interface (API) Framework (the Framework) and the Central Register for the insurance sector, providing guidance and necessary facilitation to market participants for their journey of Open API implementation.
In response to the global trend of increasing Open API application and the industry-wide recognition on the importance of Open API for system interface enhancement and data exchange, the IA has worked closely with market stakeholders to formulate the Framework with a view to providing guiding principles on Open API adoption, covering areas such as categorization of Open API functions, third-party service provider (TSP) governance and risk management as well as exemplary use cases to stimulate innovation. The Framework also aims to foster cross-sectoral collaboration and Insurtech application to bring about better, more seamless financial services to the public.
As a supportive measure to facilitate Open API implementation, IA partners with Hong Kong Science and Technology Parks Corporation (HKSTP) to co-develop the Central Register for the insurance industry. Being a standardized and trusted online platform, the Central Register enables authorized insurers, licensed insurance intermediaries, and their partnering TSPs to manage and introduce their Open API and relevant data to the public, thereby fostering partnerships and greater connection among market stakeholders that lead to more innovation and quality services.
Mr. Tony Chan, Associate Director, Policy and Development of the IA, encouraged the insurance industry to leverage the Central Register for innovation and partnership. “The Open API Framework and the Central Register are indicative of IA’s commitment and efforts in driving greater collaboration among market players, while promoting Insurtech application within and beyond insurance sector,” he said. “The IA will continue to join hands with HKSTP and other market stakeholders to nurture a vibrant Insurtech and Open API ecosystem.”
Dr. Crystal Fok, Head of STP Platform at HKSTP, said, “Open APIs are the gateway to embracing Open Finance. By leveraging the power of open data sharing, we can unlock new opportunities and business value arising from collaboration, innovation, and customer-centric solutions. Through the OpenAPI Platform, we aim to empower tech ventures and insurance companies to harness the full potential of Open APIs, delivering impactful financial experiences for the industry.”