In recognition of the impact of COVID-19 on the insurance industry and taking into account a request made by the Hong Kong Federation of Insurers, the Insurance Authority (IA) has issued a circular, announcing that it will modify the approach for bringing certain guidelines into effect.
In relation to the following guidelines (which took effect on 23 September 2019), the IA has indicated that it will assess the degree of compliance by authorized insurers and licensed insurance intermediaries as if the transitional periods contained in those guidelines (which will run until 22 September 2020) were extended until 31 March 2021.
- GL25: Guideline on Offering of Gifts
- GL27: Guideline on Long Term Insurance Policy Replacement
- GL28: Guideline on Benefit Illustrations for Long Term Insurance Policies
- GL29: Guideline on Cooling-off Period
- GL30: Guideline on Financial Needs Analysis
In relation to GL31 (Guideline on Medical Insurance Business), which has not taken effect, the commencement date of 23 September 2020 will not change. However, the IA will exercise flexibility in determining if the requirements contained in GL31 have been observed for a period up to 31 March 2021, with full compliance expected by 1 April 2021.
A copy of the circular can be accessed here.