The newly elected chairman of the Hong Kong Federation of Insurers (HKFI), Frank Chan Yun-lam, has been strongly criticised by a member over a proposed independent compliance committee. Mr Chan has suggested setting up the committee to regulate the industry's conduct and arbitrate disputes among insurance companies. He has also proposed compulsory membership of the federation. He recommended setting up a service for policyholders which would allow them to calculate how much it would cost to switch a policy from one insurance company to another. Lippo Protective Life Insurance, a member of the federation, has written to the federation and the Insurance Commissioner attacking Mr Chan's proposals. Lippo managing director and chief executive Elroy Chan Siu-yuen said: 'Regulating the industry is the job of the Insurance Commissioner, not the HKFI. 'Policy comparison services will be costly and the federation should not move to launch it until members have been consulted,' he said. Mr Chan said Lippo would consider withdrawing from the federation if the company's opinions were not considered. He said the role of the federation should be as a representative body for its members allowing greater self-regulation, rather than acting to impose regulations. Mr Chan said the proposed policy comparison service had already been passed by the federation's governing committee without first consulting members, indicating it was acting unilaterally. He urged fellow members to object to the move and call for consultation on the proposal. Insurance Commissioner Alan Wong Chi-kong supported the federation. 'The Insurance Commissioner and the HKFI are not in conflict but have a complementary relationship,' Mr Wong said.