Hong Kong IA proposes quadrupling insurance fee cap to $3.6m

Long-term insurers could face higher annual regulatory costs.

Hong Kong’s Insurance Authority (IA) launched a public consultation on 4 November 2026 regarding proposed amendments, which include increasing the cap on the variable component of annual fees for authorised long-term insurers from $910,000 (HK$7m) to $3.6m (HK$28m), alongside adjusting the related rate from 0.0039% to 0.0042% of insurance liabilities.

The amendments are for the Insurance (Authorisation and Annual Fees) Regulation (Cap. 41C) and the Insurance (Levy) Order (Cap. 41J).

Additionally, the cap on the premium levy paid by long-term policyholders would rise from $13 (HK$100) to either $65 (HK$500) or $130 (HK$1,000), whilst keeping the related rate steady at 0.1%.

An IA spokesperson stated that the review ensures the authority can sustainably perform its statutory functions whilst balancing the impact on policyholders and the industry's international competitiveness.

The public consultation paper is available on the IA website, with submissions open until 3 December 2026.

($1 = HK$0.13)