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 findings from a joint inspection on premium financing to enforce minimum standards for affordability assessments and over-leveraging risks. The regulators identified key compliance gaps, including insurers' failure to adequately verify customer financial resources, banks' insufficient credit assessments, and instances of inappropriate sales practices and disclosure failures. While most entities met basic requirements, the inspection highlighted good practices such as stress testing and post-sale monitoring, while urging firms to improve internal controls, training, and operational diligence.
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