Hong Kong’s recently established Insurance Authority will be part funded through a levy on insurance premiums payable by policyholders via insurers. Insurers would be collecting the levy from 1 January 2018.
From 1 January 2018 to 31 March 2019, the levy rates will be 0.04% for general business of each annual premium.
The levy will then rise to 0.06% for 1 April 2019 to 31 March 2020.
The rates will rise each year until 1 April 2021 when they will remain at 0.1%.
The caps mean policyholders will not pay extra for premiums above HK$5m for general policies.
There are exemptions for reinsurance and captive insurers premiums while brokers would help inform clients also.
For Further information on Insurance Levy, Please check website of Insurance Authority.