The yellow sections in the charts above show that no one buys ILAS products directly from insurers. The products are universally flogged through an army of commission-based agents and brokers.
There’s two explanations for this.
1) The products are exploitative and no informed investors want to buy them. The only way to distribute the products is by bribing advisers and agents to hunt for inexperienced investors who are easily conned.
2) A cartel of brokers and agents have strong-armed insurance companies into forbidding direct sales to investors. This forces investors to go through agents or brokers and to pay massive hidden commissions. Commission-free ILAS products with lower fees do not exist. This serves the interests of no one but salespeople, who serve the interests of insurers.
The blue section in the second chart shows that Hong Kong banks have completely stopped selling ILAS products. HKMA (the bank regulator) apparently realized that ILAS products are a menace to the Hong Kong public, and it decided to stop the exploitation.
Disgustingly, the self-regulated criminal insurance industry continues ripping off consumers with impunity.
It is published by the Office of the Commissioner of Insurance. All dollars are HKD.