{"id":1948,"date":"2026-04-17T10:44:36","date_gmt":"2026-04-17T10:44:36","guid":{"rendered":"https:\/\/yfgprestige.com\/?p=1948"},"modified":"2026-10-20T13:17:13","modified_gmt":"2026-10-20T13:17:13","slug":"gl16","status":"publish","type":"post","link":"https:\/\/yfgprestige.com\/tc\/gl16\/","title":{"rendered":"Compliance Perspective: Revised GL16 and New FNA Standards Take Effect"},"content":{"rendered":"
\n

Introduction<\/strong><\/p>\n

The Insurance Authority (IA) announced the revised “GL16: Underwriting Guidelines for Long-term Business (Excluding Category C Business)” on February 6, 2026. This revision further aligns the guideline with the Insurance Core Principles, Standards, Guidance and Assessment Methodology issued by the International Association of Insurance Supervisors (IAIS), improves consistency and overall readability and removes duplicate content from the last update to GL34. The revised GL16 came into effect on 31 March 2026, while the relevant requirements related to Part 4 of GL34 will be extended to June 30, 2026.<\/p>\n

As the revision of GL16 officially comes into effect, major insurance companies have successively updated their financial needs analysis (FNA) in response to the heightened regulatory requirements for product suitability. The industry has generally adjusted the structure, risk disclosure methods and presentation of non-guaranteed elements of FNA, and YFG has also simultaneously launched a new version of FNA (YFBL FNA v3.2) to ensure that its processes are consistent with the latest regulatory expectations. This article explains the main revisions to GL16 and the key changes in the new version of FNA to help licensed business representatives understand how the regulatory direction affects day-to-day practice.<\/p>\n

Regulatory Framework<\/strong><\/strong><\/p>\n

1\u3002\u570b\u969b\u4fdd\u96aa\u76e3\u7406\u4eba\u5354\u6703\u3002 \uff082024\uff09\u3002\u00a0\u4fdd\u96aa\u6838\u5fc3\u539f\u5247\u3001\u6a19\u6e96\u3001\u6307\u5c0e\u548c\u8a55\u4f30\u65b9\u6cd5\uff08ICP\uff09<\/em>. IAIS.\u00a0<\/p>\n

2. Insurance Authority (IA) (2024).“Guideline on Underwriting Long Term Insurance Business (other than Class C Business)<\/em>(GL16)<\/em>. Insurance Authority (IA).<\/p>\n

YFG Compliance Department’s View<\/strong>\uff1a<\/strong>GL16: Main Changes in This Revision<\/strong><\/p>\n

What is IAIS?<\/p>\n

IAIS (International Association of Insurance Supervisors) is the “International Association of Insurance Supervisors”. It is a global organization of insurance regulators, composed of local insurance regulatory authorities, responsible for formulating international insurance regulatory standards, including the Insurance Core Principles (ICP). In short, it is the global rule-setter for the insurance industry. The Hong Kong Insurance Authority is a formal member of the IAIS and needs to participate in international regulatory discussions and standard setting. Therefore, the Insurance Authority needs to localize ICP standards and implement them in Hong Kong’s Regulatory Framework. The revision of GL16 is one example of this process.<\/p>\n

Changes to the GL16 suitability assessment requirements<\/p>\n

The new version of GL16 clearly narrows “knowledge and experience” to “financial knowledge and experience”, which means that when conducting financial needs analysis, insurance companies must understand the customer’s financial-related knowledge level and can no longer use general life or purchasing experience as the basis for judgment. This requires business representatives to more accurately grasp customers’ understanding of investments, risks and non-guaranteed elements, and ensure that recommended products are consistent with their financial understanding.<\/p>\n

At the same time, the new version of GL16 adds “risk tolerance” as information that must be collected, extending the risk assessment that was mainly used for investment products in the past to all long-term insurance products.<\/p>\n

\"\"<\/figure>\n

Relevant insurers and intermediaries need to review their financial needs analysis (FNA) processes, collect appropriate information on customers\u2019 risk tolerance and assess whether recommended products fit their circumstances. YFG has introduced YFBL FNA v3.2 to support these processes.<\/p>\n

\"\"<\/figure>\n

Conclusion<\/strong><\/p>\n

The GL16 revisions and related FNA process updates have practical implications for relevant insurers and insurance intermediaries. As an insurance broker company, YFG will implement the requirements applicable to its role and strengthen suitability assessment and customer protection. Effective regulation and professional service support transparency and confidence in Hong Kong\u2019s insurance market.<\/p>\n

Attachment 1: GL16: Guideline on Underwriting Long Term Insurance Business (other than Class C Business) and GL34: Guideline on Governance and Management of Fund(s) of Participating Business.
\u9ede\u9019\u88e1 <\/a>\u67e5\u770b<\/p>\n

YFG Compliance Department<\/p>\n

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Disclaimer:<\/strong><\/p>\n

1. This document and the content contained therein (hereinafter referred to as the “Content”) are based on the position of Yu Fung Broker Limited (YFG). The content is for reference only and may not reflect the latest regulatory and compliance developments. Relevant laws, rules, regulations, guidelines, codes of conduct or practice summaries (“Applicable Laws”) may also change from time to time, and different people may have different understandings of their content or applicability.<\/p>\n

2. All content does not provide regulatory, compliance, legal, financial or other professional advice on any specific matter, and is not used as a basis for any investment or business decision, nor is it intended to replace the review and compliance with the detailed provisions of applicable laws. Relevant professional advice should be sought before taking or refraining from taking any action based on all or part of the content.<\/p>\n

3. Although YFG has tried its best to ensure the accuracy and completeness of the content, it does not guarantee that it does not contain errors or omissions. Neither YFG nor the author, editor, reviewer or any other relevant person of this document guarantees the accuracy of the content (including references or links to external websites and their contents), nor assumes any responsibility for any direct or indirect consequences, losses or damages caused by reliance on all or part of the content.<\/p>\n

4. If all or part of the content is reprinted or quoted by other websites, works or publications (whether in paper, electronic or other forms), or forwarded to any third party, YFG will not be responsible for any direct or indirect consequences, losses or damages caused by such reprinting, citing or forwarding.<\/p>\n

5. This document is for internal reference only by YFG or its business partners. Please do not copy, reproduce or distribute all or part of the content without prior written authorization.<\/p>\n<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

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