Hong Kong Insurance Authority publishes Conduct In Focus with mystery shopping findings on roadshows and shortcomings in digital insurance sales systems

The Hong Kong Insurance Authority has published the latest edition of Conduct In Focus, setting out updated complaints statistics and conduct observations for insurance practitioners and policyholders, including findings from a mystery shopping exercise on insurance-related roadshow activities and a review of common pitfalls in digitised insurance sales systems. Complaints increased year on year in the first half of 2025, but a five-year view shows a decline compared with pre-pandemic levels. A three-month mystery shopping exercise conducted by the Insurance Authority’s Enforcement Division in 2025 identified issues in roadshow activities and highlighted the need for insurers to put robust control and governance frameworks in place, alongside good practices recommended by the regulator. Given the widespread use of digitised sales systems to generate policy recommendations and submit applications, system assessment has been incorporated into conduct inspections, with a special supplement outlining common shortcomings in system design and implementation and suggested areas for improvement. The edition also covers regulatory considerations around agencies specialising in run-off portfolio management, broker disclosure on risks and limitations when sourcing offshore insurance products, and the implications of the recent cessation of Mandatory Provident Fund-related telemarketing for cold-calling practices.