Hong Kong: More measures introduced to facilitate online purchase of life insurance products – Asia Insurance Review
In view of the latest pandemic situation, the Insurance Authority (IA) has issued a circular to authorised life insurers announcing further facilitative measures to open up the distribution of all life insurance products via online channels to meet the demand of potential policyholders for a wide variety of insurance products while minimising the risk of infection during the sales process.
The further facilitative measures are:
The validity of the temporary facilitative measures (TFM) for non-face-to-face distribution of specific protective insurance products will be extended to 30 September 2022. The TFMs were rolled out in two phases in February and March 2020.
The scope of products covered (in-scope TFM products) and the implementation details of the measures remain unchanged. Products 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.
To satisfy the growing needs of the general public for protective insurance products and enhance financial inclusiveness, the IA will allow the distribution of all life insurance products, including Investment-linked Assurance Scheme (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 has set up a fast track to expedite the processing of applications from insurers without VO Sandbox intending to sell life insurance products via video conference. They may also 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.
Ms Carol Hui, executive director of Long Term Business at the IA, said, “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.”
The IA will review constantly the facilitative arrangements in view of the evolving pandemic developments.
