Beginning January 2026 all newly launched insurance products in Hong Kong with savings features will include the term 'insurance' in their names, both in English and Chinese.
A joint circular issued by the Insurance Authority of Hong Kong and Monetary Authority of Hong Kong said this would be required regardless of whether the term savings or similar descriptions are used in product brochures or any sales materials.
In the second phase of the order all existing products in this category that will continue to be sold on or after January 2027 must also comply with the requirements starting from January 2027.
Insurance companies are required to ensure that all relevant policy documents, including sales materials and communications with policyholders, are updated accordingly.
The circular said that authorities have observed that certain insurance products currently sold in Hong Kong tend to confuse potential policyholders, especially those with savings characteristics. This is because such products often lack clear labelling as insurance policies, potentially leading consumers to mistake them for bank deposits, which could result in complaints from policyholders.
To ensure that insurance products with savings characteristics are described clearly and accurately, the Insurance Authority and the Monetary Authority have made it clear that it is necessary to establish regulatory expectations regarding the naming of such products.
The ultimate goal is to ensure that the nature of the products is communicated clearly and accurately to potential policyholders at the time of sale and throughout the entire policy lifecycle. Investment-linked assurance schemes and qualifying deferred annuity policies, which are widely recognised as insurance products, are exempt from the requirements.