4 April 2023
In view of the latest epidemic development and the lifting of all mandatory mask-wearing requirements by the Government, the Insurance Authority (IA) today (4 April 2023) issued a circular informing all authorized long term insurers that the temporary facilitative measures (TFM) will cease after 30 April 2023.
The purpose of introducing TFM in early 2020 was to make possible non-face-to-face distribution of specific protective insurance products 1 during the pandemic when in-person selling activities were not encouraged. To provide sufficient time for insurers to adjust internal procedures and handle insurance applications submitted on or before 30 April 2023, a one-month transitional period (1 May to 31 May 2023) will be introduced for insurers to return to normalcy and complete the underwriting process.
To facilitate innovative product diversification and the Insurtech development in Hong Kong, the IA has been promoting the use of digital distribution channels while ensuring that prudential supervision is maintained and the interests of policy holders are properly protected. Despite the cessation of TFM, insurers and intermediaries can still make use of the Virtual Onboarding (VO) Sandbox to distribute all types of life insurance products via video conferences.
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Note:
1 Products covered by TFM include Qualifying Deferred Annuity Policy (QDAP), Voluntary Health Insurance Scheme (VHIS) products, term life policies, and refundable policies without substantial savings component or renewable policies without cash value that provide insurance protection. Insurers and intermediaries adopting TFM are required to make upfront disclosure at the point-of-sale and provide an extended cooling-off period of no less than 30 calendar days.