Regulatory Alerts2024-06-27
Added · Updated
Findings from IA-HKMA Joint Inspection Exercise on Premium Financing
The Insurance Authority and Hong Kong Monetary Authority issued this circular to share key observations from their joint inspection of premium financing compliance following the implementation of supervisory standards in January 2023. The regulators found that while most entities generally complied with the standards and adopted prudent risk thresholds, significant issues persisted including inadequate affordability assessments, operational oversights in disclosure forms, and reliance on unverified bank reference letters. Authorized insurers and licensed intermediaries are reminded to strictly adhere to the standards, particularly regarding the prohibition of recommendations before loan details are ascertained, and to exercise heightened due care given the current higher interest rate environment.
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