The much-vaunted “Insurance Connect” – a special channel for the marketing, sales and processing of insurance products between the mainland and Hong Kong – is in progress. So says Moses Cheng Mo-chi, Hong Kong Insurance Authority chairman.
Speaking to a forum in Hong Kong this week, Cheng said it would follow the framework of the Stock Connect and Bond Connect schemes. Hong Kong insurance companies will be allowed to sell products with a “simple structure and high guarantees” under the pilot scheme in the Greater Bay Area.
Regulators are understandably cautious, given recent concerns about capital outflows. To address that, terminal bonuses and policy payouts must be returned to the mainland in their full amount, Cheng said. The initial focus will be on motor vehicle and medical insurance products.