Core Viewpoint - The recent surge in Hong Kong Interbank Offered Rate (Hibor) has significantly impacted the cost of insurance premium financing, leading to increased loan interest rates for policyholders [2][4][10] Group 1: Hibor Impact on Insurance Financing - Hibor has risen sharply from 0.91% to 3.30% within a few weeks, causing monthly loan repayments for policyholders to double [2][4] - Insurance premium financing in Hong Kong typically involves loans set at Hibor + approximately 1%, making fluctuations in Hibor directly affect repayment amounts [2][4] - The increase in Hibor has raised concerns among policyholders who previously benefited from low-interest rates when purchasing insurance policies [2][5] Group 2: Comparison with Macau Insurance Financing - Unlike Hong Kong, Macau's insurance premium financing allows policyholders to defer interest payments until policy maturity, preserving liquidity [3][8] - Macau's financing products are linked to the Prime Rate, which is less volatile than Hibor, providing more stable borrowing costs [7][8] - The current effective loan rate in Macau is between 3.35% and 4.05%, with a cap on interest rates to mitigate risks associated with rate fluctuations [8][9] Group 3: Profitability and Risks of Premium Financing - Premium financing can amplify returns by leveraging low-interest loans to invest in high-yield insurance products, but it also carries significant risks, especially in rising interest rate environments [4][10] - Policyholders may face financial losses if the returns on their insurance policies do not exceed the costs of borrowing, particularly if interest rates rise unexpectedly [10][11] - The potential for losing insurance coverage exists if policyholders cannot meet their loan obligations, emphasizing the need for careful financial assessment before engaging in premium financing [10][11][12]