Since 1 January 2018, the Hong Kong Insurance Authority (“IA”) has required policyholders to pay a levy on insurance premiums under the Insurance Ordinance (Cap. 41). This levy is collected by authorized insurers when premiums are paid and remitted to the IA.
Details of the levy rates and caps are set out below:
| Period | Levy Rate | Maximum levy to be applied per policy (General Insurance) |
| From 1 January 2018 to 31 March 2019 (both dates inclusive) |
0.04% | HKD 2,000 |
| From 1 April 2019 to 31 March 2020 (both dates inclusive) |
0.06% | HKD 3,000 |
| From 1 April 2020 to 31 March 2021 (both dates inclusive) |
0.085% | HKD 4,250 |
| From 1 April 2021 onwards | 0.10% | HKD 5,000 |
Further Information
Further information on the Levy can be found on the Insurance Authority’s website at:
https://www.ia.org.hk/en/index.html
(Please note the content of this webpage is for information only and is not intended to be, nor should it be taken as, legal advice.)