Hong Kong Levy Notice
Hong Kong Insurance Authority – Premium Levy Notice
From 1st January 2018, the Hong Kong Insurance Authority (“IA”) will start collecting a premium levy on insurance premiums from policyholders through insurance companies to partly fund its operating costs. The premium levy will be applied to all new and renewed policies from that date. The premium levy will be applied on an incremental basis to minimize the impact on policyholders. The premium levy rate will start at 0.04% of the insurance premium in the initial period and increase gradually until it reaches 0.1% in 2021, subject to a cap.
The table below sets out the respective premium levy and cap applicable to General Insurance business.
| Period | Levy Rate | Maximum levy to be applied per policy |
|---|---|---|
| 1st January 2018 to 31st March 2019 (both dates inclusive) | 0.04% | HKD 2,000 |
| 1st April 2019 to 31st March 2020 (both dates inclusive) | 0.06% | HKD 3,000 |
| 1st April 2020 to 31st March 2021 (both dates inclusive) | 0.085% | HKD 4,250 |
| From 1st April 2021 onwards | 0.1% | HKD 5,000 |
The premium levy shall apply to all types of general insurance policies except reinsurance contracts, marine, aviation and goods-in-transit business. As such, we will be collecting the applicable premium levy from policyholders for remittance to the IA and the applicable premium levy will be reflected on your policy schedule and renewal notice. For further details, please refer to the IA’s office website at:
If you have any questions regarding this premium levy on insurance policies, please contact your broker or your Berkley Insurance Company contact person.