Regulatory Alerts2026-08-20
Added
Circular issued by the Insurance Authority regarding observations on insurance business carried on with the use of premium financing facilities
The Insurance Authority (IA) reminds authorized insurers of their ongoing obligations under the Insurance Ordinance and relevant regulatory requirements when underwriting new policies with premium financing facilities. The IA expects authorized insurers to proactively review sales and training materials for premium financing products, ensuring they are balanced and clearly disclose potential significant losses and other key downside risks. Authorized institutions (AIs) acting as licensed insurance intermediaries must keep abreast of changes in sales and training materials from their principals and ensure proper disclosure to customers. The IA and the Hong Kong Monetary Authority have scheduled another round of joint inspection on premium financing in the second half of 2026.