Hong Kong’s Insurance Authority is conducting a review of medical insurance products, with particular emphasis on coverage adequacy, 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 underpinned by enhanced data analytics, enabling the regulator to obtain a more comprehensive and accurate understanding of market developments.
He noted that the authority intends to strengthen the quality, consistency, and granularity of industry data. This is expected to support improved assessment of product structures, premium-setting mechanisms, the scope of coverage offered to policyholders, and the broader impact of rising medical costs on insurance design and sustainability.
The review will initially prioritise products with the widest policyholder base. According to Lau, the objective is to refine product offerings so that they remain accessible and affordable while ensuring long-term market sustainability. Consumer protection will remain a central pillar of the initiative, alongside continued efforts to enhance conduct regulation within the insurance sector.
The regulator also plans to review Guideline 31, which sets out standards relating to accessibility, affordability, and fair treatment of customers in insurance practices. As part of this process, the authority may issue more detailed guidance for insurers, informed by policyholder feedback as well as comparative practices observed in other jurisdictions. These measures are intended to support fairer outcomes in sales processes, claims handling, and complaints management.
Key focus areas of the review
| Area of focus | Description |
|---|---|
| Product coverage | Assessment of adequacy and structure of medical insurance offerings |
| Affordability | Evaluation of premium levels and cost pressures on policyholders |
| Data quality | Improvement in consistency and detail of industry reporting |
| Consumer protection | Strengthening safeguards in sales, claims, and complaint handling |
| Regulatory guidance | Possible refinement of Guideline 31 to enhance fair treatment standards |
In a separate address delivered on 25 March, Lau stated that Hong Kong’s seven captive insurers are operating in a sound manner. Captive insurance refers to arrangements in which companies establish their own insurance subsidiaries to underwrite risks within the corporate group, enabling them to retain underwriting profits and investment returns while managing specialised risk exposures internally.
Lau also highlighted broader global market trends, noting that worldwide captive insurance premiums have exceeded US$220 billion, while China accounts for approximately 18% of global gross domestic product. He added that both the government and the regulator are planning further measures aimed at supporting the continued development of the captive insurance sector in Hong Kong.