Insurance Authority and Hong Kong Monetary Authority roll out measures to strengthen protection for policyholders taking out life insurance policies through premium financing
保險業監管局及香港金融管理局推出措施就利用保費融資投購人壽保單加強投保人保障
The Insurance Authority and the Hong Kong Monetary Authority each issued a circular on 1 April 2022, clarifying regulatory standards for the use of premium financing to take out life insurance policies, and introduced the Important Facts Statement — Premium Financing, requiring customers to complete and sign it for each new policy application using premium financing. The circulars also cover affordability assessment, additional measures for customers whose borrowing may be excessively leveraged, sales practices and training, with all regulatory standards and requirements taking effect on 1 January 2023.
The circulars state an effective date of 1 January 2023 and set out areas including affordability assessment, allowing compliance timelines for insurers and intermediaries to be checked.
Source: 保監局·新聞稿 · ia.org.hk