Hong Kong IA extends temporary distribution measures until September

This means face-to-face sales of some insurance products are still prohibited.

The Hong Kong Insurance Authority (IA) will be extending the validity of the temporary facilitative measures (TFM) for non-face-to-face distribution of specific protective insurance products until 30 September 2022.

This means that sale of long term insurance products, which the IA normally restrict to face-to-face, will be allowed to be sold online.

Additionally, the IA will allow the distribution of all life products including investment-linked assurance schemes (ILAS) products via virtual onboarding (VO) Sandbox approved by the IA. All other existing requirements for the distribution of ILAS products still apply and must be complied with as appropriate. Insurers currently operating VO Sandbox approved by the IA need not submit new applications to effect this extension.

In addition, all in-scope TFM products can now be sold via VO Sandbox without recording, provided that upfront disclosure at the point-of-sale is duly performed and an extended cooling-off period of no less than 30 calendar days is in place.

The IA also said it is also expediting the processing of applications from insurers without VO Sandbox intending to sell life insurance products via video conference. The IA advised that such insurers should consider making use of  the shared virtual onboarding platform launched by the Hong Kong Federation of Insurers in September 2020, which has been pre-vetted by the IA to shorten the turnaround time required for the necessary approval.

“The introduction of further facilitative measures aims to help address the need of potential policyholders in obtaining the necessary protection while minimising the risk of infection when taking out life insurance policies. We appreciate the unwavering support and dedication of our insurance industry in providing quality services and timely protection for policyholders amid the current severe pandemic situation,” said Carol Hui, Executive Director of Long Term Business of the IA.

The IA said it will constantly review the facilitative arrangements in view of the evolving pandemic developments.

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