Insurance table-reading guide
Issue Year vs Policy Year Guide
Issue year tells you when a policy cohort started. Policy year tells you how long that cohort has been in force. Confusing those two labels is one of the easiest ways to misread insurer disclosure tables.
This page summarizes public information for research and comparison. It is not personalized financial advice.
What issue year means
Issue year groups policies by the calendar year in which they were sold or issued. Insurers disclose many long-term metrics by issue-year cohort because different sales vintages may have different illustrated assumptions, bonus scales, or product versions.
That means a 2014 cohort and a 2020 cohort of the same product may not behave identically. Comparing them without noticing the cohort label can flatten important differences in pricing and performance.
What policy year means
Policy year is the duration of the policy since issue. Policy year 1 is the first year after purchase, policy year 10 is the tenth year in force, and so on.
In disclosure tables, policy year tells you when a value is being measured along the life of the contract. It is about elapsed time, not the calendar year when the policy was bought.
How to use both labels when comparing
For a fair comparison, first align the product, currency, issue year, and metric. Only then compare policy-year values. If one table uses a 2015 issue cohort and another uses 2021, the numbers may reflect different starting assumptions even at the same policy year.
When a product page shows issue-year coverage and policy-year counts, treat that as a map of what the disclosure actually contains. It tells you whether you are looking at one cohort, multiple cohorts, short duration, or long duration evidence.
Issue year FAQ
Can I compare policy year 10 across different issue years?
You can, but only carefully. Different issue years may reflect different product generations, economic environments, or illustration assumptions.
Why do some tables show a range of issue years?
Because the dataset includes multiple policy cohorts. That usually means the disclosure is summarizing more than one sales vintage of the same product.
Which label matters more: issue year or policy year?
Both matter. Issue year tells you which cohort you are looking at, while policy year tells you which point in the contract life is being measured.
Sources and methodology
Definitions and comparison frameworks reference the Hong Kong Insurance Authority and public insurer disclosures. Check the latest official documents before making a decision.
Continue reading
Hong Kong insurance guide
Dividend Fulfillment Ratio Guide
Learn how Hong Kong insurance dividend fulfillment ratios are calculated, how to read policy year data, and how to compare participating products responsibly.
Hong Kong insurance guide
Total Cash Value Ratio Guide
Understand total cash value ratios for Hong Kong insurance products, including guaranteed and non-guaranteed values, policy years, and comparison pitfalls.