Insurance Authority to ease overseas mainlanders in purchasing Hong Kong insurance virtually

The Insurance Authority planned to allow Chinese passport holders who do not reside in the mainland to purchase Hong Kong insurance policies overseas, with consultation set in the next quarter.

Under the current regulation, mainland Chinese visitors (MCVs) include Chinese passport holders who reside in both the mainland and overseas, requiring them to be present in Hong Kong to sign Hong Kong insurance policies –known as "fly to buy"– which is inconvenient for overseas Chinese who wish to purchase insurance in Hong Kong.

Marty Lui Yu-kwok, executive director of long-term business at the Insurance Authority, said the authority has planned an industry consultation in the next quarter to remove overseas Chinese from the MCVs category, so they can purchase insurance policies remotely; and while reducing unnecessary "fly to buy" restrictions, it emphasized maintaining basic compliance requirements, such as anti-money-laundering measures.

He added that Hong Kong insurance companies must regulate their systems, sales, and underwriting processes; and collect more market data to design more comprehensive insurance policies for overseas Chinese.

Gloria Leung