Insurers are set to pay more to fund regulators’ activities following a hike in the financial sector levy that sees the Australian Prudential Regulation Authority (APRA) increase its overall take by 7% to $107.9 million.

The Federal Government has lifted the levy for general insurers, with the restricted rate going from 0.01690% to 0.01965% of total assets and the unrestricted rate from 0.006414% to 0.006645%.

The restricted minimum and maximum levels are unchanged at $4700 and $700,000, respectively.

The restricted levy covers the direct cost of supervision, while the unrestricted levy covers indirect costs associated with the overall analysis of risks across the industry.

APRA would not comment directly on the rises, but insuranceNEWS.com.au understands the levies fluctuate in line with the amount of work the regulator has been doing in the respective sectors.

The regulator faces a heavy general insurance workload over the next year implementing the direct offshore foreign insurer (DOFI) legislation and refinements to the prudential framework.

Life insurers also face increased payments, with their restricted rate up from 0.00391% to 0.00701% and unrestricted rate from 0.000973% to 0.001286%. Restricted life insurance minimum and maximum levies are unchanged at $470 and $700,000.

The levy is paid by prudentially regulated financial institutions, including general insurers, life insurers, superannuation funds and authorised deposit-taking institutions.

It covers APRA’s operational costs, as well as the market integrity and consumer protection functions of ASIC and the Australian Taxation Office.