ComplianceOne Insurance Newsletter – September 2025
The topics discussed in this monthly newsletter are as follows:
REGULATORY UPDATES
MARKET NEWS
Captive Insurance Highlighted as Risk Tool at Belt and Road Summit
Hong Kong Green Week Spotlights Insurance's Vital Role in Climate Resilience
ENFORCEMENT NEWS
ENFORCEMENT NEWS
Regulatory News
1. Latest 'Conduct In Focus' Edition Highlights Key Regulatory Insights and Industry Trends
On 30 September 2025, the IA has released the newest edition of Conduct In Focus, a valuable resource for insurance practitioners and policyholders alike. This publication delivers the latest complaints statistics alongside in-depth regulatory insights and observations on conduct-related matters, aimed at fostering a more transparent and ethical insurance landscape.
Key Highlights:
Additional Topics Explored
The publication also addresses several emerging issues:
Run-Off Portfolios Management:
Regulatory considerations for insurance agencies specializing in managing run-off portfolios, highlighting opportunities and compliance requirements in this growing niche.
Broker Disclosures for Offshore Products:
The essential role of brokers in transparently disclosing risks and limitations when sourcing offshore insurance solutions for clients, to safeguard informed decision-making.
Impact of MPF Telemarketing Cessation:
Implications for cold-calling practices within the insurance sector following the recent halt of Mandatory Provident Fund (MPF)-related telemarketing, urging a review of sales strategies.
SIGNIFICANCE:
This edition of Conduct In Focus serves as a timely guide for navigating regulatory expectations and adopting best practices. Insurance professionals are encouraged to review the full publication for actionable insights that can strengthen their operations and client relationships.
Market News
2. Captive Insurance Highlighted as Risk Tool at Belt and Road Summit
On 10 September 2025, the IA took center stage today at the prestigious Belt and Road Summit, hosting a dedicated breakout session on the pivotal role of captive insurance in bolstering risk management for enterprises engaging in Belt and Road Initiative (“BRI”) projects. This session underscored Hong Kong's emerging status as a premier captive domicile, equipped to support participants in tackling the multifaceted challenges of international expansion.
Key Highlights from the Session
The discussion, moderated by Mr. Clement Lau, Executive Director of Policy and Legislation at the IA, emphasized the need for innovative risk strategies amid the BRI's vast scope. "The extensive scale of the Belt and Road Initiative entails a wide range of complex and diverse risks, requiring participants to adopt innovative and comprehensive risk management strategies where captives can be a valuable option," Mr. Lau remarked. He further highlighted Hong Kong's commitment: "By fostering a vibrant captive ecosystem in Hong Kong, we stand ready to support Belt and Road participants in venturing abroad and exploring new markets."
Panelists included CEOs from two Hong Kong-domiciled captive insurers, one established by a Mainland enterprise and another by a multinational conglomerate. They shared how these captives have empowered their parent companies to effectively manage intricate risk landscapes and emerging threats.
Experienced professional service providers also contributed, detailing the comprehensive support they provide for establishing and operating captives, from regulatory navigation to ongoing management.
SIGNIFICANCE:
The session delved into Hong Kong's unique advantages as a captive insurance center, including its strategic location, robust regulatory framework, and facilitative measures introduced by the IA. Attendees gained insights into the future trajectory of the Hong Kong captive market, positioning it as a leading global hub for BRI participants seeking tailored risk solutions.
This event aligns with the broader goals of the Belt and Road Summit, highlighted how captive insurance offers enterprises a customized approach to risk transfer, cost efficiency, and enhanced control over insurance programs, essential for the high-stakes, cross-border nature of BRI projects.
3. Hong Kong Green Week Spotlights Insurance's Vital Role in Climate Resilience
On 12 September 2025, the IA and the Hong Kong Federation of Insurers (“HKFI”) joined forces today to co-host a landmark event as part of the Hong Kong Green Week. Themed "Bridging Finance and Future: The Insurance Industry as a Pillar of Climate Resilience," this featured seminar brought together over 180 insurance practitioners and stakeholders both in-person and online to explore how the insurance sector can drive climate adaptation and sustainability.
The event featured expert speakers from the insurance industry, government, academia, and the commercial sector, fostering discussions on navigating climate risks and identifying opportunities for innovation.
Spotlight on the Climate Modelling Project
A key highlight was an overview of the Climate Modelling Project, a collaborative effort led by the IA in partnership with the HKFI's Task Force on Green Insurance and the Hong Kong University of Science and Technology (“HKUST”). Representatives including Mr. Clement Lau, Executive Director of Policy and Legislation at the IA; Mr. Eric Hui, Chairman of the HKFI Task Force on Green Insurance; and Professor Alexis Lau from HKUST shared how this initiative leverages insurers' claims data to enhance underwriting capabilities, spur product innovation, and improve climate risk assessments aligned with sustainability objectives.
This regulator-industry-academia collaboration aims to translate advanced research into practical tools for the sector, empowering insurers to better support Hong Kong's green transition.
SIGNIFICANCE:
As part of the broader Hong Kong Green Week initiative, this event underscores the city's commitment to sustainable development.
Mr. Stephen Yiu, Chairman of the IA, stressed the urgency of multi-stakeholder engagement in addressing climate challenges. "Given the scale and complexity of climate-related risks, it is incumbent upon regulators and policymakers to engage proactively with the insurance industry, to strengthen our city’s climate resilience through robust risk assessment, improved risk management frameworks underpinned by a deeper understanding of the social value of insurance," he said.
Enforcement News
4. IA Imposes 50-Month Ban on Insurance Intermediary for Misconduct
On 25 September 2025, the IA has taken decisive action by banning Ms. SO Yuen Wa (Licence number: IG3140) (“Mr. SO”) from acting as an insurance intermediary for a period of 50 months. This enforcement measure underscores the IA's commitment to upholding ethical standards and safeguarding policyholders' interests in the industry.
Details of the Case
Ms. SO engaged in deceptive practices by providing misleading advice to two clients, falsely claiming that her appointing insurer would acquire their existing policies. This inducement led the clients to surrender three critical illness and long-term savings policies in favor of purchasing eight new ones through her.
Key violations included:
Failing to disclose that the transactions constituted de facto policy replacements.
Impersonating one client to inquire about her policies.
Pocketing the surrender value instead of applying it to the new policies.
Although Ms. SO later repaid nearly all the funds involved, the harm to the clients was significant. They were left without the protection of their original policies and lost the chance to reinstate them, highlighting the irreversible consequences of such actions.
SIGNIFICANCE:
Policy replacement is a critical decision with profound effects on policyholders' financial security and coverage. The IA emphasizes that deceptive or unethical practices in this area will not be tolerated and will result in severe penalties.
The public is strongly advised to exercise caution when considering surrendering existing policies. Insurance intermediaries are reminded to adhere strictly to ethical guidelines to avoid similar repercussions.
Miscellaneous
5. New TV Drama 'IA Files' Spotlights IA's Regulatory and Enforcement Role
On 23 September 2025, the IA and Radio Television Hong Kong (“RTHK”) are set to launch "IA Files" (“保監有道” in Chinese), a compelling four-episode TV drama series premiering on RTHK TV31 on 27 September 2025. Drawing from real-life cases, the series aims to illuminate the IA's regulatory, investigative, and enforcement activities while delivering essential educational messages on insurance practices.
Alan Wu, Acting Head of Conduct Supervision at the IA, elaborated on the content: "The stories in the drama series are based on real-life complaints and investigation cases, covering issues such as failure to explain key policy features to customers, inducement of policy replacements, unlicensed selling, and misappropriation of premiums. The IA places strong emphasis on the industry’s adherence to the principle of ‘treating customers fairly’, and it is vital for intermediaries to act in the best interests of their clients in their dealings."
Broadcast Details
IA Files will air on Saturdays at 7pm for four weeks starting from 27 September on RTHK TV31. The episodes will also be streamed simultaneously on the RTHK website and “RTHK TV” mobile app. The programme will later be available for viewing on the IA’s YouTube channel. Please see the series synopsis in the annex (Chinese only).
[End of ComplianceOne Insurance Newsletter – September 2025]
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