Core Viewpoint - The surge in insurance purchases in Hong Kong is driven by the impending regulatory change that will lower the illustrated yield cap for participating insurance policies from 7% to 6.5% starting July 1, 2023, leading to a rush among mainland clients to secure policies before the change takes effect [1][7][12]. Group 1: Market Dynamics - The number of mainland clients traveling to Hong Kong for insurance has significantly increased, with reports of long queues at insurance companies as clients rush to finalize their policies before the new regulations [2][5][6]. - Insurance agents are capitalizing on the "last window period" narrative, promoting the urgency to purchase policies with higher illustrated yields before the regulatory change [9][10]. Group 2: Regulatory Changes - The Hong Kong Insurance Authority has issued guidelines that will limit the illustrated yield for Hong Kong dollar participating policies to 6% and for non-Hong Kong dollar policies to 6.5%, effective July 1, 2023 [7][10]. - The new regulations aim to address the significant gap between high illustrated yields and actual returns, as many policies have not met their projected performance [11][13]. Group 3: Product Performance - Despite the high illustrated yields, actual performance data shows that around 40% of participating insurance products in Hong Kong have not achieved their projected returns, with actual dividend realization rates fluctuating between 85% and 107% [12][13]. - The long-term nature of these insurance products means that achieving the illustrated yields often requires decades, with some policies needing up to 100 years to realize the higher returns [14].