This legal update briefly summarises the recent guidelines issued by the OCI and HKMA: OCI Guidance Note 16 on Underwriting Long Term Insurance Business ("GN16") and HKMA Circulars: (i) Selling of Life Insurance Products dated 4 August 2015 and (ii) Selling of Non-Linked Long Term Insurance Products dated 8 December 2014.
GN16 is issued by the Office of the Commissioner of Insurance in Hong Kong ("OCI") to promote transparency and fair customer treatment. The Guidance Note applies to all long term insurance other than investment-linked insurance (Class C) and adopts various Insurance Core Principles, Standards, Guidance and Assessment Methodology ("ICP") promulgated by the International Association of Insurance Supervisors. GN16 applies to all new products from 1 April 2016 and current products from 1 January 2017.
HKMA has issued two Circulars recently on the sale of life insurance products by authorized institutions ("AI"). These Circulars were issued after consulting OCI and seek to achieve the common objective of customer protection.
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Originally published 2 September 2015.
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