Adjustment of annual fees for insurers
Fees payable by authorised insurers upon authorization and annually thereafter will be adjusted from July 12.
The Insurance Companies (Authorisation and Annual Fees) Regulation 1996 which prescribes the amount of fees will be gazetted this Friday (May 31).
A government spokesman said today (Wednesday) that in line with government policy, it was necessary to revise the level of fees to recover the costs of supervision of insurers and their insurance agents by the Office of the Commissioner of Insurance.
"The adjustment in fees, apart from adjustment for inflation and the rising costs of supervision to cope with increasing sophistication and complexity of the insurance industry, represents the last phase of increase towards full cost-recovery," he said.
"The proper supervision of the insurance industry is necessary not only to improve the protection of the insuring public but also to uphold the industry's integrity, and hence public confidence in it, as well as to enhance the reputation of Hong Kong as an international financial centre."
On commencement of the regulation, the authorisation or annual fee payable by an insurer carrying on either long- term insurance business or general insurance business is $227,300.
"The increase in fees will add marginally to the operating costs of the insurers," the spokesman added.
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