Practice Note on Illustration Rate Caps in Benefit Illustration for Participating Policies

28 February 2025 By email only Our Ref: INS/TEC/6/100 To: Chief Executives of all authorized insurers carrying on long term business, Responsible Officers of all licensed insurance broker companies and licensed insurance agencies carrying on long term business Dear Sirs/Madams, Practice Note on Illustration Rate Caps in Benefit Illustration for Participating Policies To ensure policyholders’ reasonable expectations on the performance of their participating policies are met, the Insurance Authority (“IA”) issues the Practice Note on Illustration Rate Caps in Benefit Illustration for Participating Policies (“Practice Note”) to articulate a set of aligned minimum expectations regarding the illustration rate caps that authorized insurers should use in benefit illustrations for participating policies at the point of sale. The Practice Note shall take effect from 1 July 2025. The requirements and expectations outlined in the Practice Note apply to all benefit illustrations to be provided by authorized insurers and licensed insurance intermediaries at the point of sale. Should you have any questions in relation to the above, please contact your case officer or email us at enquiry@ia.org.hk. Yours faithfully, Marty Lui Executive Director Long Term Business Division Insurance Authority Encl. c.c. The Hong Kong Confederation of Insurance Brokers The Hong Kong Federation of Insurers Professional Insurance Brokers Association The Actuarial Society of Hong Kong