Sales of investment-linked assurance products fall 42% in Q1June 2 2015 by InsuranceAsia News Staff
Data released by Hong Kong’s Insurance Commissioner showed that sales of investment-linked assurance products (ILAS) in the city dropped 42% in Q1 year-on-year.
Sales of the controversial insurance product plunged dramatically after Hong Kong regulators tightened the rules in January.
Data showed that insurance agents sold only 7,556 ILAS in the first three months of this year following the regulatory changes, with Convoy Financial Holdings, one of the city’s largest brokers, expecting a 55% year-on-year drop in Q1.
ILAS, which was once a cornerstone product for wealth managers, combines life insurance policy with mutual funds.
There are currently over 1.6 million ILAS policies in Hong Kong worth HKD603bn (US$77.75bn) in paid premiums.
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