Insurance Authority Introduces Shameful Fig Leaf Reform: ‘105’ Policies Aren’t Much Better than ‘101s’, Says SCMP Columnist

Next year, regulators will no longer allow insurers to offer ‘101’ ILAS policies. The products will all become ‘105’ policies. This means that instead of offering a measly 1% death benefit, the products will offer a slightly less measly 5%.

This will do nothing to stop the products from being mis-sold as an “attractive” combination of investment plus “insurance”.

Enoch Yiu, a columnist from the South China Morning Post, has a better proposal for regulators:

The government should think about banning products from being called life insurance if the life coverage is too low.

See Enoch Yiu’s article here:

What’s in a name? Some insurance policies smell too sweet

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