HK regulator optimistic despite Beijing restrictions

November 7 2016 by InsuranceAsia News Staff

Despite the expected moderation in purchases of insurance products in Hong Kong, the new insurance regulator sees demand for these products remaining strong because of their high quality.

Beijing has been making moves to stem capital outflows as a cushion to the declining value of yuan.

Moses Cheng, chairman of Hong Kong’s Independent Insurance Authority (IIA), said that the authority is expected to discuss the matter with its mainland counterpart once it becomes fully operational early next year.

China’s biggest bankcard provider UnionPay last week tightened rules on how customers can use its debit and credit cards to purchase Hong Kong insurance products.

China has been tightening rules for purchase of insurance products by its citizens in Hong Kong amid fears that those investments are being used to move money abroad.

Cheng said he was hopeful the UnionPay restrictions would not adversely affect the industry because there are many legitimate ways to buy products in the city, and mainlanders would continue to be attracted to Hong Kong’s higher quality policies.

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