The Insurance Authority (“IA”) is an insurance regulator independent of the government and the industry. Its objectives are to provide better protection for policyholders and encourage development of the insurance industry, among others.
Starting from 1 January 2018, Insurance Authority collects premium levy from policyholders through insurers under The Insurance (Levy) Regulation and the Insurance (Levy) Order the Insurance Ordinance (Cap.41). The levy rate started at 0.04% of insurance premiums and will be adjusted gradually until it reaches 0.1%, subject to a levy cap.
As The Insurance Authority ("IA") is the independent regulator of Hong Kong's insurance industry, it has to cover its own operating costs. To maintain financial independence, the IA has been collecting levy on insurance premiums since the start of 2018. From April 1, 2020 to March 31, 2021, the levy rate is 0.085% based on the premium of each policy year, which means that only HKD 0.85 will be collected for every HKD 1,000 of premium. The rate will be increased to 0.1% from April 1, 2021, which means that only HKD 1.00 will be collected for every HKD 1,000 of premium.
For further information, please visit https://www.ia.org.hk/en/aboutus/role/financial_arrangements.html .