Hong Kong Insurance Authority tightens commission rules as HKMA raises pressure

Banks, financial institutions selling long-term policies face prorated pay expectations.

Hong Kong’s Insurance Authority (IA) has issued a directive reminding long-term insurers and licensed insurance intermediaries to align with new remuneration rules set by the Hong Kong Monetary Authority (HKMA).

The circular, issued on 5 June 2026, highlights the HKMA’s regulatory expectations regarding commission spreading for banks and financial institutions selling participating policies with regular payment terms. 

The measures are designed to ensure that prorated pay structures align the financial interests of intermediaries with those of policyholders, whilst supporting both pre-contract and ongoing services.

Under the framework, authorised insurers must incorporate the HKMA's requirements when designing payment structures for their appointed intermediaries. 

The IA stated that these new guidelines, alongside its own existing 2025 Practice Note, form a comprehensive regulatory system that must be applied holistically by the industry.