To address issues of aged society, FSC has laid down the Directions for Micro-whole-life Insurance and developed supervisory incentives to encourage the insurance industry to offer such products to satisfy the need of senior citizens for basic insurance coverage. Micro-whole-life Insurance provides a whole life insurance policy with NT$300,000 benefit amount and with an accident insurance rider with NT$20,000 benefit amount. Such products are not allowed to have the features of increasing insured amounts or multiplying the benefit payment and the policy can only cover single insured incident. Moreover, the expenses loading of such products shall not exceed 10%. Insurance companies should make adjustments to the underwriting rules for such products in order to attract seniors to buy them. In order to prevent moral hazard, the in-force contract of each insured is limited to covering one product portfolio of micro-whole-life Insurance. If the insured dies or has total disability within three policy years after the purchase of the insurance, the payment for death benefit or disability benefit shall be 1.025 of total premium paid.
In addition, FSC is developing supervisory incentives for insurance companies meeting certain criteria for Micro-whole-life Insurance for the insured over 55 years old, in order to encourage them to develop and design such products. FSC will also publicly recognize insurance companies with good performance in this regard in the future in big promotional event to encourage them make a contribution to public welfare and supplementing the social security net.