Regulatory Alerts2025-02-28
Added · Updated
Practice Note on Illustration Rate Caps in Benefit Illustration for Participating Policies
The Insurance Authority issued a Practice Note establishing aligned minimum expectations for illustration rate caps in benefit illustrations for participating policies to prevent overly aggressive investment assumptions. Authorized institutions acting as licensed insurance intermediaries are required to present adequate, accurate, and non-misleading information while strictly avoiding the use of re-illustrations for aggressive or unethical selling practices. These regulatory requirements and expectations apply to all benefit illustrations provided by licensed intermediaries at the point of sale to customers.