Regulatory Alerts2021-09-30
Added · Updated
Joint inspection on the use of premium financing to take out long term insurance policies in Hong Kong
The Insurance Authority and the Hong Kong Monetary Authority issued this circular to share findings from their first joint inspection of premium financing activities for long-term insurance policies. The regulators identified deficiencies in affordability assessments, risk disclosures, and the fair treatment of customers, noting that intermediaries often failed to adequately consider the impact of loan facilities on policy benefits. Consequently, both authorities plan to engage with the industry to clarify regulatory expectations and improve customer protection regarding these financing arrangements.