In July 2025, the Hong Kong Insurance Authority (IA) issued a new Practice Note, “Remuneration Structures of Authorised Insurers for Licensed Insurance Intermediaries for Participating Policies.” Effective for new business written on or after 1 January 2026, the new framework sets out minimum expectations for spreading intermediary remuneration so that sales incentives remain aligned with the long-term nature of par products.

This e-Alert considers the commercial, operational, and financial implications of the new spreading requirement, assesses potential adjustments to existing commission structures by Hong Kong insurers, and compares the Hong Kong approach with similar regulations in markets including the United Kingdom, Singapore, and Malaysia.

Our discussion includes topics such as:

• Implications of the Practice Note, including its impact on par CI, savings and protection plans
• Commission spreading in other territories, and key differences in Hong Kong
• Observed market impact and what we can learn