Hong Kong’s Insurance Authority is undertaking a comprehensive review of medical insurance products, with particular attention to coverage levels, affordability, and consumer protection, according to Clement Lau, Executive Director for Policy and Legislation.
Speaking at the 21st Asia Conference on Healthcare and Health Insurance on 26 March, Lau said the review will be supported by enhanced data analysis. This is intended to give the regulator a clearer and more detailed understanding of market conditions, enabling more informed supervision of product design and performance.
A central component of the exercise is the improvement of the quality, consistency, and depth of industry data provided by insurers. The authority aims to use this strengthened dataset to better assess key aspects of medical insurance, including product structures, premium-setting approaches, the scope and adequacy of coverage, and the impact of rising healthcare costs on insurance sustainability.
Lau stated that the review will initially prioritise products covering the largest share of policyholders. The objective is to ensure that insurance offerings remain accessible and affordable, while also maintaining the long-term sustainability of the market. Consumer protection is expected to remain a core focus throughout the process, alongside continued strengthening of conduct regulation within the sector.
The Insurance Authority also intends to review Guideline 31, which outlines requirements relating to accessibility, affordability, and fair treatment of customers. Following this review, the regulator may issue more detailed guidance to insurers. Such guidance would take into account feedback from policyholders and relevant practices in other markets, with the aim of improving standards in sales practices, claims handling, and complaint resolution procedures.
Key areas of regulatory focus
| Area |
Description |
| Coverage adequacy |
Review of the structure and sufficiency of medical insurance products |
| Affordability |
Assessment of premium levels and cost pressures on policyholders |
| Data quality |
Enhancement of consistency and analytical value of industry reporting |
| Consumer protection |
Strengthening safeguards in customer interactions and claims processes |
| Regulatory guidance |
Possible refinement of Guideline 31 on fair treatment and accessibility |
In a separate address on 25 March, Lau said that Hong Kong’s seven captive insurers are operating in sound condition. Captive insurers are insurance entities established by companies to underwrite risks within their own corporate groups, allowing them to retain underwriting profits and investment returns while managing specialised risks internally.
He also referred to global developments in the sector, noting that worldwide captive insurance premiums have exceeded US$220 billion. He added that China accounts for around 18 per cent of global gross domestic product, highlighting the broader economic context in which the industry operates.
Lau further stated that both the Hong Kong government and the Insurance Authority are planning additional measures to support the development of the captive insurance sector. These initiatives form part of wider efforts to strengthen the city’s insurance framework and enhance its long-term competitiveness.
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