The Insurance Authority of Hong Kong launches a public consultation on the review of annual fees and premium levies.

On November 4, the Insurance Authority of Hong Kong launched a public consultation on proposed amendments to the Insurance (Authorization Fees and Annual Fees) Regulation (Cap. 41C) and the Insurance (Levies) Order (Cap. 41J), made under sections 128 and 134 of the Insurance Ordinance (Cap. 41). The amendments aim to adjust the cap on the variable portion of annual fees paid by insurers authorized to carry on long term business from $7 million to $28 million, with the applicable levy rate adjusted from 0.0039% to 0.0042% of insurance liabilities; and to adjust the cap on premium levies payable by long term business policy holders from $100 to $500 or $1,000, with the applicable levy rate maintained at 0.1%. A spokesperson for the Insurance Authority said: "This review is conducted in accordance with the original design of the funding mechanism to ensure that the Insurance Authority can effectively and sustainably perform its statutory functions, while minimizing the impact on policy holders and the international competitiveness of the insurance industry."