Hong Kong Insurance: Frequently Asked Questions

A policy underwritten in Hong Kong by an insurer authorized by the Insurance Authority (IA), sold by an IA-licensed intermediary, governed by Hong Kong law and usually denominated in HK$ or US$. The difference from a Mainland policy lies in currency, governing law and regulator, not in "returns".

The IA's provisional statistics for 2025 (24 Apr 2026) show gross premiums of HK$827bn and long term new office premiums of HK$330.9bn (+50.6%), of which participating business was HK$282.8bn. As at 31 Mar 2025 there were 157 authorized insurers and 118,406 licensed intermediaries.

In 2024, HK$62.8bn of new office premiums, 28.6% of individual new business; about 59% whole life, 28% critical illness and 5% medical by policy count. The IA has not published a separate Mainland visitor figure since the first quarter of 2025 while it reviews its data collection, so there is no official number for 2025 or later.

An independent statutory body under the Insurance Ordinance (Cap. 41). It has regulated insurers since 26 Jun 2017 and licensed intermediaries directly since 23 Sep 2019. It authorizes, licenses, issues guidelines, inspects, disciplines and handles complaints; it does not approve individual products or their returns and runs no compensation fund.

No. The IA authorizes insurers and licenses intermediaries; it does not approve products. Investment-linked schemes are authorized by the Securities and Futures Commission, and that authorization is not a recommendation or guarantee.

No. Mainland regulators have said since 2016 that residents must travel to Hong Kong, and that a policy signed on the Mainland is an "underground policy" protected by neither Mainland nor Hong Kong law. The IA's IFS-MP circular requires Mainland ID card holders to sign the statement in Hong Kong.

The Important Facts Statement for Mainland Policyholders, issued on 8 Jul 2016 and in force since 1 Sep 2016. Mainland ID card holders buying long term policies must have it explained item by item and sign it; it covers Hong Kong governing law, exchange rate and FX policy risk, the need to apply in Hong Kong, and claims and dispute arrangements.

Search the IA's register of licensed insurance intermediaries by name or licence number and check the licence type, principal, status and line of business. Since 23 Sep 2019 anyone selling insurance in Hong Kong must hold an IA licence.

Not advisable. Referrers hold no IA licence, their explanations are outside the IA's conduct rules, Mainland regulators launched campaigns against illegal sales of overseas insurance in 2024, and the IA prohibits licensees from sharing commission with unlicensed persons. Deal directly with a licensed intermediary or the insurer.

Typically the Mainland travel permit with a valid endorsement, Mainland ID card, address proof, income or asset proof for larger sums assured, health information, beneficiary details and a payment arrangement. Signing dates must match your entry record.

Protection products (term life, critical illness, medical including VHIS, accident) and savings products (participating whole life and savings plans, annuities including QDAP, universal life, investment-linked schemes). Protection premiums buy risk transfer; savings returns split into guaranteed and non-guaranteed parts.

The ratio of non-guaranteed dividends actually declared to the amounts illustrated at sale, calculated under the IA's interpretation notes effective 1 Jan 2024 and published annually on insurers' websites since 2017 under GL16. It shows past delivery, not future returns. This site quotes no specific values.

Two: VHIS certified plan premiums up to HK$8,000 per insured person per year, and QDAP premiums plus MPF tax-deductible voluntary contributions up to HK$60,000 per taxpayer per year, both from the 2019/20 year of assessment. They matter only to people with Hong Kong taxable income.

21 calendar days for life policies under GL29, counted from delivery of the policy or the cooling-off notice. Cancelling in writing within the period returns premiums and levy without interest; investment-linked products may apply a market value adjustment. Mainland visitors are covered equally.

Complain to the Insurance Complaints Bureau within six months of the insurer's final decision. Claims disputes are adjudicated by its Claims Complaints Panel, whose decisions bind member insurers; non-claims monetary disputes go to mediation. The service is free; the monetary limit is stated by 2024-2025 sources as HK$1.5m (check the Bureau's current terms).

Hong Kong currently has no statutory compensation fund for life policies. The FSTB's December 2023 conclusions propose a Policy Holders' Protection Scheme paying 100% of the first HK$100,000 plus 80% of the balance up to HK$1m per policy, but no bill had been introduced as at 4 Nov 2026. Protection today rests on insurers' capital and the IA's risk-based capital regime (in force since 1 Jul 2024).

Not for savings-type life or universal life policies: UnionPay has restricted such payments since October 2016, allowing only non-investment products such as accident and medical insurance within per-transaction limits. Most policyholders need a Hong Kong bank account.

No. The State Administration of Foreign Exchange said in 2016 that overseas life and investment-return participating insurance are capital account items that are not open; the quota covers current account uses only and purpose must be declared. This site does not describe conversion routes.

Yes. Hong Kong insurers are reporting financial institutions and cash value insurance and annuity contracts are financial accounts; the Chinese Mainland has been an exchange partner since 2018. You submit a tax residency self-certification at application and update it when circumstances change. CRS itself creates no tax.

Chinese tax residents are taxed on worldwide income, and the State Taxation Administration reiterated in August 2026 that taxable income from overseas insurance must be declared, describing this as existing policy. Which payments are taxable depends on Mainland tax law; obtain professional advice. Hong Kong itself levies no income tax on personal policy proceeds and abolished estate duty on 11 Feb 2006.

Only the guaranteed column is contractual. Non-guaranteed dividends depend on investment returns, claims and expenses and may be higher or lower than illustrated; illustration rates have been capped since 1 Jul 2025. Check the fulfillment ratio for the product series on the insurer's website and note its date.

Savings policies have cash values well below premiums paid in the early years; the break-even year can only be read from the guaranteed column of the illustration. Only cancellation within the cooling-off period returns the full premium.

No. It organises public documents, explains mechanisms and cites sources. It does not compare insurers or products, show illustrations, describe conversion routes or give tax or legal advice, and it carries on no insurance sales or promotion in Mainland China.