Assurance Scheme (ILAS) products. These include the implementation of (i) an enhanced Financial Needs Analysis, a Risk Profile Questionnaire, an Applicant Declaration and a Suitability Check; and (ii) post-sale controls. In particular, from 1 January 2010, life insurers are required to complete and make audio recordings of post-sales telephone calls with customers before the expiry of the relevant cooling-off period.
In addition, life insurers are required to implement (by 1 February 2010) the 21 days’ cooling-off period which gives purchasers of new life insurance policies an opportunity to reconsider their decision to purchase a life insurance product which is a long term commitment. In this connection, the HKLIC has also promulgated a Code of Practice for Life Insurance Replacement which will come into effect on 1 February 2010.
Furthermore, a revised Code of Practice for the Administration of Insurance Agents (with related Guidance Notes) has been introduced by the HKLIC and will come into force on 1 March 2010.
These enhanced self-regulatory requirements are intended by the HKLIC to ensure that customers purchase insurance products that are suitable for them and consistent with their needs and risk appetite.