The Insurance Authority (IA) ramped up its market surveillance efforts to protect policyholders amid concerns over unregulated insurance marketing practices observed during the recent Golden Week holiday in Hong Kong.
Salespeople were seen along Canton Road in Tsim Sha Tsui holding placards advertising “Hong Kong insurance” with bold claims about returns – yet no clear indication of the insurers they represented.
These roadside promotions sparked concern over whether the individuals were licensed intermediaries and if they were acting within regulatory bounds.
In response, the IA’s Enforcement Division launched a covert operation, deploying mystery shoppers to gather intelligence on these street-level activities. Conversations with numerous sales representatives revealed possible breaches in conduct and prompted the regulator to follow up with the insurers involved to prevent future non-compliance.
The IA said that such roadshow-style marketing – typically conducted at temporary booths or in retail spaces – must be carried out by licensed intermediaries with visible insurer logos and pre-approved materials. The surge of unregulated street marketing led the IA to deepen its commitment to identifying and addressing misconduct early.
To this end, the IA has expanded its surveillance arsenal to include both physical and digital monitoring. On-site inspections, mystery shopping, and real-time observations now complement tech-enabled oversight of digital platforms and social media. The regulator is also partnering with industry bodies to promote information-sharing and enhance enforcement capabilities.
“By strengthening our surveillance tools and reinforcing industry collaboration, we aim to maintain the highest standards of conduct and professionalism,” said Maria Tsui, head of enforcement at the IA. “This ensures the public can place trust in licensed intermediaries and reinforces the sector’s role in the community.”
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