Insurance Authority Levy
With effect from 1 January 2018, the Insurance Authority (IA) has imposed Insurance Authority Levy (“IA Levy”) on all insurance policies under specified levy rates (except for certain exempted insurance classes). The IA Levy is remitted in accordance with the prescribed arrangements. Policyholders and customers should pay the levy in accordance with the law.
The following table outlines the applicable levy period, rate and cap.
|Policy inception date||Levy rate||Cap (HKD)|
|From 1 January 2018 till 31 March 2019 (both dates inclusive)||0.04%||2,000|
|From 1 April 2019 till 31 March 2020 (both dates inclusive)||0.06%||3,000|
|From 1 April 2020 till 31 March 2021 (both dates inclusive)||0.085%||4,250|
|From 1 April 2021 onwards (date inclusive)||0.1%||5,000|
Reinsurance businesses, marine, aviation and goods in-transits policies and policies underwritten by authorized captive insurers are exempt from IA Levy.
For further details of the IA Levy, please refer to the frequently-asked-questions below or visit www.ia.org.hk.
Frequently Asked Questions
Except for certain policies exempted from the levy by law, policyholders of all new or in-force life insurance policies and general insurance policies (such as travel, motor, property and household insurance) must pay the levy along with their premium payment.