The Insurance Authority (IA) has announced the second phase of temporary facilitative measures, in view of the latest developments of the COVID-19 pandemic. It has widened the types of life insurance products that can be distributed through non-face-to-face methods to minimise the risk of infection during the selling process.
On top of Qualifying Deferred Annuity Policy (QDAP) and Voluntary Health Insurance Scheme (VHIS) products covered in the first phase of the temporary facilitative measures, the second phase now also covers additional protection type products, including term policies, and certain refundable or renewable policies that provide insurance protection (such as hospital cash, medical, critical illness, personal accident, disability or long-term care cover).
With immediate effect until 30 June 2020, insurers and intermediaries are allowed to distribute those life insurance products through non-face-to-face methods. Measures have been put into place to ensure that the interests of policy holders and potential policy holders are not adversely affected, including mandatory upfront disclosure at the point-of-sale and an extended cooling-off period of no less than 30 calendar days.
The extension of the temporary facilitative measures was communicated to authorized long-term insurers via a circular, issued by the IA today. The IA will continue to explore with industry stakeholders the use of sustainable and virtual distribution channels for other products, while ensuring that prudential supervision is maintained and the interests of policy holders are properly protected, in order to facilitate innovative product diversification and the development of Insurtech in Hong Kong.
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