HKIA issues guidance on intermediary pay for long-term policies

The HKIA expects insurers to ensure intermediaries provide both pre-contract advice.

The Hong Kong Insurance Authority (HKIA) has issued a new Practice Note outlining its expectations on how authorised insurers should structure remuneration for licensed insurance intermediaries handling participating long-term insurance policies.

Effective 1 January 2026, the guidance applies to policies with regular premium payment terms and aims to align intermediary incentives with the interests of policyholders. 

The HKIA expects insurers to ensure intermediaries provide both pre-contract advice and ongoing servicing after policy sale.

The Practice Note supplements existing requirements under GL16 and is available on the HKIA’s website. 
Insurers are expected to review and adjust their remuneration structures in line with the new guidance ahead of the effective date.