HK regulator extends measures on non-physical product distribution

It covers the online distribution of QDAP, VHIS, amongst others.

The Hong Kong Insurance Authority (IA) has extended the validity of temporary facilitative measures to 30 September, an announcement read.

The measures cover the non face-to-face distribution of specific protective insurance products. The scope of products covered and the implementation details of the measures remain unchanged.

Products covered 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 protection.

Insurers and intermediaries can distribute those products via different non-face-to-face means, such as digital, telemarketing, postal or video conferencing, but 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 for the protection of policyholders.