Hong Kong Insurance Authority sets 50% cap on broker referral fees

The HKIA warned that excessive referral fees could mask commission rebates.

The Hong Kong Insurance Authority (HKIA) has set a 50% benchmark on referral fees paid by licensed insurance broker companies for participating policies, effective 1 October 2025.

Brokers paying above this level must provide enhanced disclosure on client sourcing, fee determination and safeguards. 

The HKIA warned that excessive referral fees could mask commission rebates or involve unlicensed selling.

Firms exceeding the threshold will face inspections and reviews that may affect licence renewal. 

Insurers are also expected to consider the benchmark in their due diligence. Partnerships with entities licensed by other Hong Kong regulators are exempt.