Insurance Made Simple

If you’re visiting this page, then good on you for trying to understand insurance better! We’ve highlighted common and useful insurance terms here and broke them down in plain English.
Premium levy

Premium levy is the small portion of your premium that we pay on your behalf to the Hong Kong Insurance Authority.

Why it matters:

A new rule since January 1, 2018 requires insurance companies to collect levies from their customers and paid to the Insurance Authority (IA). The rate started at 0.04% of a policy's annual premium and will gradually be raised to 0.1% by 2021.

The IA was established as an independent body to regulate the insurance industry. The levy is meant to help it become self-sustaining with financial help from the industry or government, so that it can be a completely objective watchdog.