Hong Kong reviews medical insurance on affordability concerns

The regulator also said it plans to introduce further measures to support the captive insurance market.

Hong Kong’s Insurance Authority is reviewing medical insurance products, with a focus on coverage, 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 stronger data analysis to give the regulator a clearer view of the market. 

The authority plans to improve the quality and consistency of industry data so it can better assess product structures, premium setting, protection coverage and the impact of medical costs.

Lau said the review will focus first on products that affect most policyholders. The aim is to refine products, improve accessibility and affordability, and make sure offerings remain sustainable. 

He added that consumer protection will be a central part of the work, alongside efforts to strengthen conduct regulation.

The regulator will also review Guideline 31, which sets out standards on accessibility, affordability and fair treatment of customers. 

Lau said the authority may issue more detailed guidance for insurers, taking into account policyholder feedback and practices in other markets, to support fairer sales, claims handling and complaint processes. 

In a separate speech on 25 March, Lau said Hong Kong’s seven captive insurers are operating soundly. 

He said global captive insurance premiums have exceeded $220b, whilst China accounts for about 18% of global GDP.

Captive insurers allow companies to retain underwriting profits and investment returns within their own groups whilst addressing specialised risks.

The government and regulator plan to introduce further measures to support the sector’s development.