From 1 January 2018, the Insurance Authority (“IA”) will start collecting a premium levy on insurance premiums from policy holders through insurance companies for all new and renewed policies. The levy will be applied on an incremental basis to minimize the impact on policyholders. The levy rate will start at 0.04% of the insurance premium in Phase 1, and increase gradually until it reaches 0.1%, subject to a cap.
We set out below the respective levy and cap applicable to General Insurance business.