What happens if an insurer goes into bankruptcy? Can we seek help through the deposit insurance ?
1. It’s possible that an insurer be going into bankruptcy because, like other financial institution, insurance companies are regulated by the Financial Supervisory Commission, R.O.C and the rules, regulations, directions as well as guidelines promulgated by it.
2. Deposit insurance is only for bank deposits. In accordance with the Insurance Act, all insurers are required to set up a stabilization fund [there are separate stabilization funds for life and non-life insurance, with about NT 0.42 billion and NT 3.07 billion as of the end of 2016, respectively]. The stabilization fund will be used to pay up a proportion of the benefits claimed by insured parties if an insurer goes into bankruptcy.
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3313
Update：
2017-07-10