Hong Kong Insurance Regulatory Authority launches public consultation on review of annual fees and premium levies

Zhitong Finance App learned that on November 4, the Hong Kong Insurance Regulatory Authority launched a public consultation on the proposed amendments to the Insurance (Authorization Fee and Annual Fee) Regulations (Chapter 41C) and the Insurance (Levy) Order (Chapter 41J), respectively, made under sections 128 and 134 of the Insurance Ordinance (Chapter 41).

The purpose of the amendments is to adjust the upper limit of the non-fixed portion of the annual fee paid by insurance companies authorized to operate long-term business from $7 million to $28 million, and the levy rate from 0.0039% to 0.0042% of the insurance liability; and to adjust the maximum premium levy to be paid by long-term business policyholders from $100 to $500 or $1,000, while maintaining the relevant levy rate at 0.1%.

A spokesman for the Hong Kong Insurance Regulatory Authority said, “This review was carried out in accordance with the original design of the funding mechanism to ensure that the Insurance Authority performs its statutory functions effectively and sustainably, while at the same time minimising the impact on the international competitiveness of policyholders and the insurance industry.”