Insurance Referral Agreement Template for Hong Kong

An Insurance Referral Agreement is a legal contract that allows insurance companies in Hong Kong to establish compliant partnerships with businesses that can refer potential customers without engaging in regulated insurance intermediary activities. This document creates a structured framework for referral relationships while ensuring compliance with the Insurance Ordinance and Hong Kong Insurance Authority guidelines.

When do you need this document?

You need an Insurance Referral Agreement when your insurance company wants to partner with banks, real estate agencies, wealth management firms, or other businesses to expand your customer base through referrals. This agreement is essential when establishing relationships with property management companies who can refer tenants seeking insurance, car dealerships introducing customers to motor insurance, or travel agencies referring clients for travel insurance. The document becomes crucial when you want to compensate referral partners while maintaining clear boundaries that distinguish referral activities from regulated insurance intermediation. You also need this agreement when entering partnerships with professional services firms or retail chains that have regular customer interactions and can generate quality insurance leads.

Key legal considerations

The agreement must clearly define the scope of referral activities to ensure compliance with Insurance Authority regulations that distinguish between permitted referrals and prohibited insurance advice or intermediation. Personal data protection clauses are critical under the Personal Data (Privacy) Ordinance, as the agreement involves sharing customer information between parties. Anti-money laundering provisions must address obligations under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, particularly regarding customer due diligence and suspicious transaction reporting. Compensation structures require careful drafting to avoid creating unauthorized insurance intermediary relationships, with clear provisions about when and how referral fees are paid. Termination clauses should address the handling of ongoing referrals and data retention obligations after the agreement ends.

Legal requirements in Hong Kong

Under the Insurance Ordinance, referral partners cannot provide insurance advice, make recommendations, or engage in regulated intermediary activities without proper authorization from the Insurance Authority. The agreement must comply with Insurance Authority Guidelines on Referral Arrangements, which specify that referrers can only introduce potential customers and provide factual information about insurance products without advising on suitability. Data sharing provisions must meet Personal Data (Privacy) Ordinance requirements, including obtaining proper consent for data transfer and ensuring secure handling of personal information. The referrer must maintain clear records of referral activities and ensure all communications with potential customers include appropriate disclaimers about the referral relationship. Both parties must establish procedures for monitoring compliance with regulatory requirements and reporting any potential breaches to relevant authorities.