15 June 2025
You may find this to be a familiar sight while walking through the shopping district in Tsim Sha Tsui during the Golden Week holiday last month: salespeople holding eye-catching, self-made placards that read “Hong Kong insurance”, with some featuring bold statements on the returns offered, but none disclosing the logo of the insurer.
Roadshow activities are a common marketing channel used by licensed intermediaries to promote in public venues the products offered by their insurers. These roadshow activities convened in temporary booths, retail outlets or promotion trucks are manned by licensed intermediaries with the insurer’s logo on display so that passersby can enquire about the products being promoted in pre-approved marketing materials.
Due to the increasing number of salespersons conducting marketing activities on the sidewalks of Tsim Sha Tsui, the Insurance Authority (IA) has become concerned about whether these salespersons are licensed insurance intermediaries, and if they are licensed, whether they are carrying on regulated activities in accordance with the conduct requirements set out in the Insurance Ordinance.
Therefore, during the Golden Week holiday, the IA conducted a surveillance operation targeting such street peddling activities on Canton Road in Tsim Sha Tsui, where we, as mystery shoppers, spoke to many of the salespersons and obtained details about their activities. Based on the findings of the operation, we have followed up with the relevant insurers on the issues identified so as to avoid any non-compliances from arising in the future.
To further enhance the protection of potential and existing policy holders, the Enforcement Division has been building up surveillance capabilities to gather intelligence for the early detection of misconduct or undesirable behaviour that could adversely affect the interests of policy holders or the reputation of the industry. From the intelligence collected, we aim to adopt a proactive approach through public education and appropriate regulatory action to send strong deterrent signals to prevent any undesirable conduct or behaviour from escalating into a systemic issue that requires severe disciplinary sanctions or criminal prosecutions. Our ultimate objective is aligned with our statutory functions: to uphold proper conduct and professional standards of the insurance sector while protecting the interests of all policy holders, fostering the healthy and sustainable development of the industry.
To begin with, we have established self-initiated on-site monitoring as part of our market surveillance capabilities through mystery shopping exercises. These monitoring activities allow us to “walk the beat” and observe first-hand the sales activities currently carried out within the industry so we can promptly identify any behaviour that is of particular concern or raises potential conduct risk issues.
Apart from on-site surveillance, we deploy technology-empowered and data-driven tools to monitor the digital arena and social media platforms for intelligence. Recognising the industry as a valuable source of market intelligence, we have also forged close connections with industry bodies to encourage the sharing of information and knowledge to bolster our surveillance efficiency.
Through stepping up our surveillance capabilities and collaborative efforts with industry bodies, regulators and law enforcement agencies, we strive to foster and maintain a high standard of conduct and professionalism within the industry to safeguard the interests of potential and existing policy holders so they can confidently entrust licensed intermediaries to handle their insurance matters, ensuring that insurance continues to effectively perform its vital social function within the community and promoting the continuous growth of the insurance market.
Maria Tsui
Head of Enforcement, Insurance Authority
15 June 2025