The Hong Kong Federation of Insurers (HKFI) had been collaborating with the Insurance Authority (IA) since December 2019, in hopes of minimizing the protection gap and increasing the awareness and importance of retirement planning for the younger segment. We are thankful for their guidance and communications with the industry which led to the formalization of the green light process of Investment-linked Assurance Scheme (ILAS) products and ushers in Protection Linked Plans (PLP) today (28 December 2021).

The industry and IA has been making efforts in the past two years to derive a high protection product (i.e. PLP) which could facilitate the revitalization of the Class C market by striking a right balance between product suitability, market sustainability, customer value and intermediary development. The principles-based approach would be important to the development of products that stimulates progress, innovation and competition whilst ensuring fair treatment to customers.

Concurrently, the IA’s “Note on the Green Light Process for Assessment of Investment-linked Assurance Scheme (ILAS) against the Standards in Guideline on Underwriting Class C Business (GL15)” further streamlines existing requirements on ILAS products.

We look forward to the launch of new PLP and ILAS products and believe that they will help meet the evolving needs and preferences of Hong Kong customers and revitalize the Class C market.