Hong Kong to tighten burgeoning premium financing market as red flags, risks emerge

Hong Kong’s insurance watchdog is tightening oversight of the city’s booming premium financing market, as the once-niche lending arrangement spreads to lower-tier insurance buyers, while also reviewing regulations, particularly on how insurers evaluate clients’ affordability, according to Insurance Authority executives. Premium financing allows policyholders to borrow money from financial institutions to pay upfront premiums on large life insurance policies, which are commonly used as a wealth...