Although the insurance market in Hong Kong is relatively mature and well developed, there is a glaring protection gap in the life insurance market. The Insurance Authority (IA) sees merit in the more extensive use of Insurtech as a tool to direct the attention of the market towards protection products with a simple structure, widen the range of distribution channels, and enrich the mix of more affordable insurance products. At present, some insurers in Hong Kong are accelerating the development of virtual onboarding services, allowing intermediaries to carry out video conferencing, a non-face-to-face distribution method, to conduct financial needs analysis and sell insurance products to policyholders online (except investment-linked assurance scheme products).
Under the current regulatory framework, insurers must apply for a trial of virtual onboarding via video conferencing through the IA's Insurtech Sandbox.