Starting from 1 January 2018, the Insurance Authority (“IA”) will impose a prescribed levy on insurance policy in accordance with the law. Such levy payment should be made together with the premium payment to the insurer for direct remittance to the IA within the remittance period as specified by the IA. The amount of levy payable for each premium payment is the amount of premium multiplied by the applicable levy rate subject to the applicable levy cap as prescribed in the table below: Phase Period Levy Rate % Life Insurance Policies Levy Cap General Insurance Policies Levy Cap Phase 1 1 January 2018 to 31 March 2019 0.040% HKD40 HKD2,000 Phase 2 1 April 2019 to 31 March 2020 0.060% HKD60 HKD3,000 Phase 3 1 April 2020 to 31 March 2021 0.085% HKD85 HKD4,250 Phase 4 1 April 2021 onwards 0.100% HKD100 HKD5,000

Policyholders must pay the levy in accordance with the law. If a policyholder does not pay the levy as required, the IA may impose on the policyholder a penalty and may recover the outstanding levy as a civil debt due to the IA.

• Life insurance plans which are underwritten by Fubon Life Insurance (Hong Kong) Company Limited (“Fubon Life”):
  Levy will be borne by Fubon Life and remitted to IA. Fubon Life will review the arrangement for 2019 and onwards.
  For further information, please visit Fubon Life’s company website.

• Life insurance plans which are underwritten by China Life Insurance (Overseas) Company Limited (“China Life (Overseas)”):
  Levy will be collected by China Life (Overseas) on behalf of the IA and remitted to IA.
  For further information, please visit China Life (Overseas)’s company website.

• General insurance plans which are underwritten by Zurich Insurance Company Limited (“Zurich”):
  Levy collected by the IA (if any) will be imposed on the policies issued by Zurich at the applicable rate and would be remitted in accordance with the prescribed arrangements.
  For further information, please visit Zurich’s company website.

• General insurance plans which are underwritten by MSIG Insurance (Hong Kong) Limited (“MSIG”):
  Levy collected by the IA (if any) will be imposed on the policies issued by MSIG at the applicable rate and would be remitted in accordance with the prescribed arrangements.
  For further information, please visit Insurance Authority’s website.

For more details about insurer’s arrangement, please visit insurer’s dedicated IA levy webpage.

For more details about the levy matter, you may visit:
Webpage: www.ia.org.hk/en/levy
FAQs: https://www.ia.org.hk/en/infocenter/faqs/faqs_levy.html