The IA is a regulatory body independent of the Government and the industry. Empowered by the Insurance Ordinance (Cap. 41), the IA's principal function is to regulate and supervise the insurance industry to promote the general stability of the insurance industry and protect policy holders.

Levy is made by the Chief Executive in Council under Section 134 of Insurance Ordinance (Cap. 41). The levy will be imposed on policyholders and collected by insurers to remit to the IA.

The Insurance (Levy) Order will come into operation on 1 January 2018, meaning that insurance policies that are effective on/after 1 January 2018 will be required to pay the IA levy.

Levy payable is calculated as a percentage of premium. The levy rates prescribed under The Insurance (Levy) Order are reproduced below:

From 1 January 2018 till 31 March 2019 (both dates inclusive)^# – Rate: 0.040% (Max. Levy*: HK$2,000.00)

From 1 April 2019 till 31 March 2020 (both dates inclusive)^# – Rate: 0.060% (Max. Levy*: HK$3,000.00)

From 1 April 2020 till 31 March 2021 (both dates inclusive)^# – Rate: 0.085% (Max. Levy*: HK$4,250.00)

From 1 April 2021 onwards (inclusive of that date)^# – Rate: 0.100% (Max. Levy*: HK$5,000.00)

^# A policy inception date, or a policy inception anniversary date (as the case may be) which marks the beginning of a policy year

* Maximum levy for specified general business

Levy payment is to be made together with premium payment which collected by insurers to remit to the IA.

No, the levy applies to policies in which the effective date is 1 January 2018 onwards (inclusive of that date).