In early 2025, the Hong Kong Insurance Authority (HKIA) introduced a new regulatory requirement regarding benefit illustrations for par products. HKIA's latest "Practice Note on Illustration Rate Caps in Benefit Illustration for Participating Policies" aims to establish a set of minimum expectations for the illustration rates insurers should use in benefit illustrations for par policies at the point of sale. This article:

• Explores the potential implications of the practice note
• Examines the illustration caps that apply in other territories
• Highlights relevant overseas experiences for reference
• Discusses the practical concerns for Hong Kong insurers going forward