HKFI's Q mark scheme standardizes critical illness insurance definitions, beginning on September 1

The Hong Kong Federation of Insurance will launch a Q mark scheme on September 1 to standardize the definition of critical illness insurance, enhancing transparency and customer protection. 

This scheme is a best practice administered by the HKFI, providing bilingual definitions for 16 major and five minor conditions, covering about 90 percent of life insurance claims in Hong Kong. It will also standardize a common term for insurers regarding eligibility for critical illness benefits related to daily activities.

Selina Lau Pui-ling, chief executive of the HKFI, said registration is now open for insurers and intermediaries. She said 135 companies have already expressed support for the scheme, noting that standardization can minimize conflicts between insurers and claimants.

Lau stated that the HKFI will review the scheme every two to three years, considering medical advancements and other significant developments. She also mentioned that the project has minimal impact on pricing.

Orchis Li Tzy-lan, chief executive officer of Health Mutual, explained that, unlike medical insurance, which reimburses actual expenses and can see cost increases due to medical inflation, critical illness insurance costs are not influenced by medical inflation. Instead, they are only affected by the incidence rate of illnesses.

Li said the scheme is applicable to new products launched on or after September 1, adding that she believes claimants should not terminate their old contract and buy a new one, and that they should regularly review their critical illness insurance coverage.