Prior to July 1, 2004, Ministry of Finance (MOF) was the competent authority for insurance regulations and supervision. On July 1, 1991, to cope with the dramatic changes that occurred domestically and internationally, and to promote internationalization and liberalization of the financial sector, the MOF amended the Organic Act of the Ministry of Finance. The amended Act aims to strengthen supervision of financial sector in Taiwan, with the Department of Monetary Affairs being upgraded to the Bureau of Monetary Affairs, and the Insurance Section, which was the Fifth Section under the Department of Monetary Affairs, was upgraded to Department of Insurance.
On July 1, 2004, the Financial Supervisory Commission (FSC) was established as the competent authority responsible for development, supervision, regulation, and examination of financial markets and financial service enterprises in Taiwan. There are four bureaus under the FSC, including Securities and Futures Bureau. Banking Bureau, Insurance Bureau, and Financial Examination Bureau. On July 1, 2012, the Insurance Bureau was restructured with functions of its four divisions being transformed to General Supervision, Life Insurance Supervision , Non-Life Insurance Supervision , and Financial Supervision.
The duties of the four divisions are as follows:
General Supervision Division –
Supervision and management of insurance supervision policies, general supervision of insurance, insurance anti-fraud, consumer protection, insurance literacy, international and cross-strait insurance affairs and insurance agency, broker and surveyor.
Life Insurance Supervision Division –
Supervision and management of insurance financial and business statuses, life products review, promotion and management of new-typed life insurance products, change of control, acquisition and merger of life insurance companies, labor pension system, marketing channels, insurance complaints.
Non-Life Insurance Supervision Division–
Supervision and management of Compulsory Automobile Liability Insurance, Residential Earthquake Insurance, non-life insurance, corporate governance, non-life insurance products, new types of non-life insurance products, and insurance groups.
Financial Supervision Division–
Planning and formulation of regulations of actuarial statistics, reserving of insurance company, solvency system, appointed actuary system, insurance accounting system, insurance financial and business report, insurance funds, the exit of trouble insurers, ERM and the early warning system.