The Insurance Authority (IA) is Hong Kong’s insurance regulator and is independent of the Government. It is self-financing with income streams both from the insurance industry and through a levy on policyholders (‘the levy’). The levy applies to all business underwritten in Hong Kong, with the exception of Marine, Aviation, Transport business and all reinsurance contracts.
The levy is calculated based on 0.1% of the premium with a cap on the maximum levy that can be paid of HKD5,000.
Hong Kong domiciled coverholders and service companies are required to collect the levy from the policyholder and forward it on to the relevant syndicates at the time the premium is remitted. Lloyd’s will then centrally collect the levy amounts from the syndicates and pay the total levy amount to the IA centrally twice a year. Once by 31 May (for the period 1 October to 31 March) and once by 30 November (for period 1 April to 30 September).
Read the IA Policyholder Levy Briefing Document - November 2022