Hong Kong tightens premium financing rules as market reaches middle‑income buyers – South China Morning Post

Hong Kong’s insurance regulator is intensifying oversight of the booming premium financing market as the practice moves beyond its original niche of high‑net‑worth clients to lower‑tier buyers. The authority is also reviewing regulations on how insurers evaluate clients’ affordability, according to senior officials. Premium financing allows policyholders to borrow money from financial institutions to pay upfront premiums on large life insurance policies, a tool traditionally used for wealth management by affluent individuals.

“Some insurers have promoted it too aggressively by lowering threshold requirements and using high leverage to attract middle‑class buyers without fully ensuring that buyers understand the underlying risks,” said Marty Lui, the Insurance Authority’s executive director of long term business, at a media briefing on Friday.

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