How to Prepare for IIQE Paper 5 — the Only Paper You Cannot Take Remotely

Last updated 2026-08-10

Paper 5 examines "Investment-linked Long Term Insurance". In enrolment terms it differs from every other paper: the fee is higher, and there is no remote invigilation option — to sit Paper 5, you must be physically in an examination centre in Hong Kong.

The official parameters first

Two of these differences deserve a closer look:

• The fee is different. Papers 1, 2 and 3 each cost HK$195 paper-based and HK$265

computer-based; Paper 5 costs HK$325 / HK$390 (Handbook clause 5.1). The full fee-and-mode comparison across papers is in the examination fees article.

• The mode is different. Remote invigilation applies only to Papers 1, 2 and 3 —

Paper 5 has no such option. Neither the Handbook nor the official remote invigilation FAQ explains why; the practical consequence for candidates is straightforward: this paper can only be taken in person. For the eligibility rules of the remote mode itself, see the remote invigilation article.

First, confirm you actually need it

Not everyone needs Paper 5. Under the business-category table in Handbook clause 2.1.3, only categories whose scope of business includes linked long term insurance require it; if you have no intention of touching investment-linked products, Paper 1 plus either Paper 2 or Paper 3 is enough. For which papers map to which lines of business, see the full comparison.

What the paper covers: a hybrid of investment and insurance

Investment-linked long term insurance packs two things into a single contract: one part provides life cover, while the value of the other part moves with the performance of the chosen investments — gains and losses are borne by the policyholder, the opposite direction from a traditional policy, where the insurer bears the investment outcome.

The knowledge required for Paper 5 therefore spans two fields:

• The insurance side: the basic structure of long term insurance, how a policy

operates, and the duties and conduct expected in the sales process;

• The investment side: the basic concepts of funds and investment instruments, the

relationship between risk and return, and how the various charges eat into returns.

If you are unsure where the line sits between, say, a variable annuity and an investment-linked product, start with the annuities article — both carry an investment element, but the contracts serve different purposes.

Calculation questions: the most distinctive part of preparing for Paper 5

Papers 1 to 3 are dominated by conceptual questions; Paper 5 adds a category of its own: calculation. Unit prices, charge deductions, contribution allocation, return comparisons — these questions do not test recall. They test whether you can turn a percentage or a charge rate into an actual number.

For preparation, that means two things:

• Conceptual questions can be learned by reading; calculation questions only by doing.

Following someone else's worked solution and getting the answer right yourself are two different things, and the gap between them is practice.

• The time pressure is greater than it looks. 80 questions in 2 hours is a minute and

a half per question on average. Answer the conceptual questions quickly and every minute saved goes to the calculations — put the other way round, anyone shaky on the concepts will be chased by the clock through the calculation questions.

Three points to note when enrolling

1. You must attend in person. With no remote option, candidates based in the Mainland

need to build the trip to Hong Kong into their study plan.

1. Prefer the computer-based examination. The computer-based mode shows on screen,

as soon as the examination ends, whether you have passed (Handbook clause 11); paper-based results are not available until the 5th full working day after the examination date — for anyone making a dedicated trip to Hong Kong, the former lets you know the result before you leave.

1. Budget at Paper 5 prices. Do not estimate from the HK$195 the other papers

charge — the gap is substantial.

Why this article has no accuracy-rate data

Our preparation articles for Papers 1 and 3 cite real answering statistics from our candidates. Here we do not: by our own standard, the answering sample for Paper 5 does not yet have sufficient coverage to be quoted publicly. Better no number than an unreliable one. Once the sample qualifies, the figures will be added using the same method — and when they are, they will still be a practice accuracy rate, not a pass rate; the two are never convertible. To start practising right away, the Paper 5 question bank is here.

Sources and currency

The examination format and question count (Handbook clause 2.2.1), the pass mark of 70, the fees (Handbook clause 5.1), the business-category mapping (Handbook clause 2.1.3) and the timing of results (Handbook clause 11) are taken from edition 202508 of PEAK's Examination Handbook for the Insurance Intermediaries Qualifying Examination; that remote invigilation does not apply to Paper 5 is taken from the official remote invigilation FAQ. The Handbook itself states that fees may be adjusted when necessary — check the latest version on the PEAK website before enrolling. The examination syllabus and study materials for each paper are freely downloadable from the PEAK website and the Insurance Authority website (Handbook clauses 2.1.4 and 14.1). The conceptual explanation of investment-linked insurance is based on generally accepted principles of insurance, organised and written by Mange. It is not a quotation from any official material or legislation, and does not constitute legal advice.

Mange does not own, and does not claim to own, copyright in any official examination material; the content on this page is written by Mange. Nothing on this page is a promise about any examination outcome, nor does it constitute legal advice.