Macau Tightens Regulatory Controls on Life Insurance Referral Business

The Macau insurance market is experiencing rapid regulatory changes, marked by the issuance of Circular no. 022/B/2025-DSG/AMCM on November 20, 2025, which focuses on life insurance referral business. This new regulation introduces stringent requirements including prior notification for referral activities, enhanced due diligence on referrers, and stricter controls on the sales process of life insurance policies. It also enforces rigorous post-sale verification, limitations on premium financing, and mandates that policies must be Macau-based. These regulatory updates reflect the Macau regulator's aim to mitigate risks associated with referral arrangements in the life insurance sector. Insurers and intermediaries must now adopt enhanced compliance measures, reinforcing accountability for their referral partners and increasing operational oversight. While introducing additional complexities, these measures seek to ensure greater market integrity and transparency in Macau's life insurance industry.