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Financial Arrangements


The International Association of Insurance Supervisors requires that insurance regulators should be financially and operationally independent of the Government and the industry.

The costs for establishing and operating the Insurance Authority (IA) in its initial years are being covered by government funding. In the long run, the IA has to be financially independent and recover its operating costs through a premium levy from policy holders and fees payable by insurance companies, intermediaries and users for specific services.


Levy on insurance premium

Starting from 1 January 2018, the IA will collect a levy on insurance premiums from policy holders through insurance companies. The levy rate in the first phase will be 0.04% of the insurance premium and there will be a levy cap. Policy holders must pay the levy in accordance with the law, and insurance companies will inform them of the related arrangements.

Scope of the levy

Except for certain policies exempted from the levy by law1, policy holders of all new or in-force life insurance policies and general insurance policies (such as travel, motor, property and household insurance) must pay the levy along with their premium payment.

Levy rates and cap

To reduce the impact on policy holders, an incremental approach will be adopted to introduce the levy. The levy rate will start at 0.04% of the insurance premium in Phase 1, and increase gradually until it reaches 0.1%.

There will be a cap on the levy. For life insurance policies with single or annualised premiums at or above $100,000, or general insurance policies with annual premiums at or above $5 million, policy holders will need to pay only the cap. For example, in Phase 1, the cap levels for life insurance policies and general insurance policies will be $402 and $2,000 per policy year respectively.


1Reinsurance business, policies underwritten by authorized captive insurers, and marine, aviation and goods-in-transit business are exempt from the levy.

2Group life insurance policies with medical protection offered by employers will be subject to the levy cap for general insurance policies.

  Phase 1 Phase 2 Phase  3 Phase 4
  1 January 2018 to
31 March 2019
1 April 2019 to
31 March 2020
1 April 2020 to
31 March 2021
From 1 April 2021
onwards
Levy rate 0.04% 0.06% 0.085% 0.1%
Levy cap
Life insurance $40 $60 $85 $100
General insurance $2,000 $3,000 $4,250 $5,000

Illustrative examples

Example 1:

Ms A bought a property insurance policy with an inception date3 of 1 January 2018. Her monthly premium is $1,000. The total levy payable from January to December 2018 will be $4.8:

The levy payable is the lower of:

  • $1,000 x 12 x 0.04% = $4.8 ; or
  • the $2,000 cap for general insurance policies.

3As defined by the law, "inception date" means the date on which the first premium under the contract becomes payable.


Example 2:

Mr B bought a life insurance policy with an inception date of 1 January 2017. His annual premium is $150,000. When making his payment for the premium payable on 1 January 2018, the levy payable for his policy will be $40:

The levy payable is the lower of:

  • $150,000 x 0.04% = $60; or
  • the $40 cap for life insurance policies.

Example 3:

Company C plans to buy a nine-month property insurance policy in February 2018 for immediate inception. The single premium payable is $6,000,000. The levy payable for this policy will be $2,000:

The levy payable is the lower of:

  • $6,000,000 x 0.04% = $2,400; or
  • the $2,000 cap for general insurance policies
    (The levy cap will not be affected by the duration of risk coverage under a policy of less than one year.)

Example 4:

Mr D’s life insurance policy has an inception date of 1 January 2018. The policy requires him to pay a premium of $300,000 every 18 months. Along with the premium payable in January 2018, the levy payable for his policy will be $60.

The levy payable is the lower of:

  • $300,000 x 0.04% = $120; or
  • $40 x 18/12 months (for policies with scheduled premium payment payable once in more than a year, a prorated cap will be applied based on the number of months) = $60

Publications and Publicity materials

Frequently asked questions

TV Announcements in the Public Interest: Coming soon

Leaflet: Coming soon


Authorization and annual fees

The Insurance Companies (Authorization and Annual Fees) (Amendment) Regulation 2017 has come into operation since 26 June 2017.  For details on ascertainment of variable fee and the payment requirement, please refer to the attached Note on Annual Authorization Fee.


User fees for specific services

The Insurance Companies (Register of Insurers) (Prescribed Fee) (Amendment) Regulation 2017 has come into operation since 26 June 2017.  Please refer to the table attached on matter in respect of which fee must be paid and its respective amount.