From 1 January 2018 a premium levy on Hong Kong insurance policies will be payable to the Insurance Authority by policyholders in line with new regulations.  The levy is a percentage of the premium payable, with a cap applied per policy per policy year.  The Insurance Authority has provided further information on their website https://www.ia.org.hk and in their leaflet.

As policyholders must pay the levy with each premium payment, the levy will be collected when premium is paid.  Insurers will then remit (pay) the levy to the Insurance Authority.  If policyholders fail to pay the levy, policyholders will commit an offence and be liable to a pecuniary penalty of up to HKD5,000.

AXA will calculate the levy on policies for customers as prescribed by the Insurance Authority, using the following information:

1.     Policy Inception date for new polices, or Policy Anniversary / Renewal date for existing policies, and type of business to identify the applicable levy rate and cap from the table below; then take

2.     The levy amount as the lower of the:

a.     Applicable levy rate multiplied by premium amount; or

b.     Levy cap per policy, per policy year

The Insurance Authority has provided examples on their website https://www.ia.org.hk