Regulatory Alerts2022-04-01
Added · Updated
HKMA Guidance on Use of Premium Financing for Long Term Insurance Policies
The Hong Kong Monetary Authority issued guidance to Authorized Institutions on complying with Insurance Authority standards regarding the use of premium financing for long term insurance policies. The document mandates rigorous suitability assessments, comprehensive risk disclosures including an Important Facts Statement, and specific protections against customer over-leveraging and cooling-off right restrictions. Authorized Institutions must enhance their internal policies and staff training to ensure full compliance with these supervisory standards by 1 January 2023.