With effect from 1.1.2018, Insurance Authority Levy ("IA Levy") will be imposed on all insurance policies under specified levy rates except for certain exempted insurance classes. IA will collect levy from policyholders through insurers for policies with policy inception date or inception anniversary date on or after 1.1.2018. The table below shows the applicable levy period, rate and cap.
|Policy inception date||Levy rate||Cap (HKD)|
|From 1 January 2018 till 31 March 2019 (both dates inclusive)||0.04%||2,000|
|From 1 April 2019 till 31 March 2020 (both dates inclusive)||0.06%||3,000|
|From 1 April 2020 till 31 March 2021(both dates inclusive)||0.085%||4,250|
|From 1 April 2021 onwards (date inclusive)||0.1%||5,000|
QBE is implementing changes to comply with the requirements of IA levy. To ensure a smooth transition to the new IA levy regime, QBE will settle the IA levy on customer's behalf for all new and renewal policies with inception date in the period from 1.1.2018 to 30.9.2018. Customers shall pay the IA levy from 1.10.2018 onward. Reinsurance businesses, marine, aviation and goods in-transits policies and policies underwritten by authorized captive insurers are exempt from IA levy.