Insurance Authority and Hong Kong Monetary Authority issue joint circular on findings of inspections of premium financing business
保險業監管局與香港金融管理局關於使用保費融資投購香港長期保險保單的聯合查察
The Insurance Authority and the Hong Kong Monetary Authority issued a joint circular on 30 September 2021, setting out the key findings of their joint inspections of the premium financing business of long-term business insurers and licensed insurance intermediaries. The inspections were conducted in the second half of 2020, and the two regulators will contact the industry to clarify the standards to be met when conducting premium financing activities. Chief Executive Clement Cheung reminded that premium financing involves the risks of leveraged borrowing and rising interest rates.
The inspections were conducted in the second half of 2020, and the circular highlights the leverage and interest rate risks of premium financing, allowing readers to check the policy arrangements they hold.
Source: 保監局·新聞稿 · ia.org.hk