This bulletin provides an update to our 19 May 2020 bulletin, COVID-19 Hong Kong: Guide to the Insurance Authority's Temporary Facilitative Measures, in which we outlined the Insurance Authority's temporary facilitative measures (TFM) introduced in the context of the COVID-19 pandemic to allow insurers and intermediaries to sell certain types of long term insurance by non-face-to-face methods, departing from the ordinarily-required face-to-face (F2F) distribution.
The Insurance Authority announced this week that the TFM are extended until 30 September 2020 (based on policy application date). Phase 2 was otherwise to expire on 30 June 2020. The scope of covered products and the implementation details (explained in our previous bulletin) continue unchanged.
We understand the Insurance Authority 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 policyholders are properly protected. Insurers and intermediaries, particularly those involved in long term insurance, should keep a close eye on further developments.
The TFM balance the need to minimise the risk of spreading the COVID-19 virus in F2F meetings, safeguarding policyholder interests and facilitating effective prudential supervision by the Insurance Authority on the one hand, and, on the other hand, ensuring continued access by the insuring public to covered protective products and also supporting the needs of the insurance industry during the COVID-19 period.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.