Today, China UnionPay confirmed that it will completely suspend the payment of Hong Kong insurance premiums through UnionPay from 0am on October 29. Premiums for all insurance products (including savings life insurance and critical illness insurance) of all insurance companies in Hong Kong can no longer be paid by swipe of UnionPay card.
Another source said that since the clearing channel of domestic VISA and Mastercard is controlled by UnionPay, and the payment business involves clearing and settlement business, therefore, from October 29, domestic VISA and Mastercard credit cards may not be used for the payment of insurance premiums in Hong Kong.
"We haven't heard the news yet," an AIA official said. "We will get more details as soon as we get back to work."
In addition, an official from the domestic insurance industry told the 21st Century Business Herald, "We already know that the UnionPay card premium will be stopped."
Up to now, China Life (overseas) has suspended the UnionPay card premium payment and policy loan business; Metlife and AIA Hong Kong will suspend all UnionPay card payments for mainland customers from tomorrow. There is no official news from Prudential, but Prudential verification centers and payment centers have temporarily extended their working hours until 11:59 PM.
As early as March 12 this year, some insurance companies in Hong Kong issued an internal notice to suspend mainland residents from purchasing life insurance and investment products from insurers in Hong Kong through electronic payment means such as UnionPay cards. However, it is still allowed to buy personal accident insurance, medical insurance and other products up to 30,000 yuan at a time. So far, Hong Kong's three biggest insurers - AIA, Prudential and BOC Life - have issued internal notices suspending the use of UnionPay networks by mainland customers.
This time, the restrictions were upgraded to a total suspension, creating a major obstacle for mainland customers to buy insurance in Hong Kong and casting doubt on the future of the city's ever-booming insurance market.
