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The 10 Most Significant Regulatory News for Insurance Sector in 2025

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The topics discussed in this analysis update are as follows:


Regulatory Updates

  1. Tackling Unlicensed Referral Activities

  2. Overhauling Commission and Referral Fee Structure

  3. Indexed Universal Life Product

  4. RO-CPTD requirement and Reference Checking Scheme


Market News

  1. Macau's Modernized Intermediary Regulations

  2. JD.com Enters Hong Kong Insurance Brokerage!


Enforcement News

  1. IA's Imposes Against the Insurance Company affiliated with the Infamous Prince Group!

  2. Tahoe Life Fined $10 Million for Unauthorized Transactions

  3. Landmark First Conviction! Broker Fined for Failing to Submit Audited Statements

  4. ICAC Crackdowns on Dummy Agent Fraud Schemes


Regulatory Updates


1. Tackling Unlicensed Referral Activities


In May 2024, The Insurance Authority (IA) issued Circular outlines key principles to regulate referral business models prohibiting unlicensed referral activities conducted by “Mainland China Visitors” (MCV).  In Jun 2025, IA’s undercover inspections in Tsim Sha Tsui uncovered unlicensed street sales issues, targeting MCVs, leading to shared findings with the industries.

(For more information: IA - Speeches/Articles 2025-06-15)



2. Overhauling Commission and Referral Fee Structure


To boost transparency and consumer protection, the IA introduced major reforms for participating policies.


  • From 1 Jan 2026, mandates spreading commissions with at least 70% in the first year and 30% over the next five; to prevent front-loading issues. (Source: IA - Circular 2025-07-30; Practice Note)


  • From 1 Oct 2025, licensed insurance broker(s) should not pay referral fess above 50% of the total commission received from insurer(s), exceed the benchmark required enhanced disclosure and explanation subject to closer monitoring by the IA. (Source: IA - Circular 2025-09-01)




3. Indexed Universal Life Product


IA and HKMA clarified regulations for Indexed Universal Life (IUL) products in Apr 2025, classifying as Class C (i.e. linked long-term) tailored for professional investors only. (Source: IA&HKMA – Joint Circular 2025-03-13)




4. RO-CPTD requirement and Reference Checking Scheme


  • From 1 Aug 2025, RO must complete at least 2 RO-CPD hours focused specifically on management and control functions during each CPD assessment period. (Source: IA - Circular 2025-07-11)


  • From 1 Jan 2026, the Reference Checking Scheme recommend all licensed insurance companies mandating checks on prospective intermediaries' past seven years, covering agents and technical representatives in long-term business to prevent misconduct migration. Not mandate but breaching the scheme may lead to closer monitoring by the IA. (Source: IA - Circular 2025-11-20)



Market News

5. Macau's Modernized Intermediary Regulations


The Monetary Authority of Macau (AMCM) introduced the Insurance Intermediary Business Law (Law No. 15/2024) effective 1 Aug 2025, replacing a 36-year-old framework (Decree-Law No. 38/89/M).




6. JD.com Enters Hong Kong Insurance Brokerage!


JD.com (京東集團)'s Hong Kong subsidiary, Jingdong Insurance Consultants (Licensed No.: GB1101), secured the insurance brokerage license in Oct 2025.

 

 


Enforcement News



7. IA's Imposes Against the Insurance Company affiliated with the Infamous Prince Group!


On 28 Oct 2025, IA imposed strict license restrictions on Mighty Divine Insurance Brokers Limited (Licensed No.: FB1329). Due to the company's association with the notorious Prince Group (太子集團); founded by Chen Zhi (陳志). IA prohibited it from engaging in any regulated activities.

 



 

8. Tahoe Life Fined $10 Million for Unauthorized Transactions

 

On 2 Sep 2025, IA reprimanded Tahoe Life and imposed a $10M fine from shareholders' funds. Penalties for unauthorized related-party deals that bypassed board approval, violating policies and regs. (Source: IA - Enforcement 2025-09-02)


 

 

9. Landmark First Conviction! Broker Fined for Failing to Submit Audited Statements


On 19 Mar 2025, IA won its first conviction under Insurance Ordinance s73(1). Aurex Insurance Brokers Ltd fined $26,060 by court for failing to submit audited statements, auditor's report, and compliance report within 6 months (twice). (Source: IA - Enforcement 2025-03-19)


 


10. ICAC Crackdowns on Dummy Agent Fraud Schemes

 

In 2025, ICAC targeted "puppet" and "dummy" agent frauds, securing convictions in related cases.


A former branch manager was sentenced to 46 months in Feb, with 10 agents receiving 11-22 months, for a 2016-2020 scheme that defrauded two insurers of over HK$52 million through 478 lapsed policies. (Source: ICAC - Press 2025-02-11)


In October, police sergeant and five others were charged for HK$3 million in bogus commissions from Sun Life and China Taiping using fake credentials and dummy recruits. (Source: ICAC - Press 2025-10-08)


The final six defendants in the $52M case were jailed 12-21 months in Nov 2025. (Source: ICAC - Press 2025-11-21)

 



[End of ComplianceOne's Summary – The 10 Most Significant Regulatory News for Insurance Sector in 2025]

 

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