In Hong Kong, a regulatory change set to be implemented in July aims to define minimum standards for the illustration rates insurers should use in benefit illustrations at the point of sale. This change could affect future fulfillment ratio disclosures. In light of the new regulation, this paper discusses:
- The types of non-guaranteed benefits typically offered by participating products in Hong Kong
- Understanding the fulfillment ratio
- Background on the Milliman Fulfillment Ratio Index
- Reporting years of the index, 2017 to 2023
- Changes in company-level fulfillment ratios from 2022 and 2023
- What is next for the fulfillment ratio