FSC announces policy planning direction for digital insurers
2025-05-07
The Financial Supervisory Commission（FSC）has announced it will revise the scope of qualifications for establishing an internet-only insurer （digital insurer）. This is being done to spur the introduction of innovative technologies into the insurance market, promote a digital transformation that will lead to more diverse, innovative products and promote financial inclusion, and thereby enhance the efficiency of insurance services as well as consumer rights. Having considered the developmental experience of both the domestic and international markets and having canvassed the opinions of relevant sectors, the FSC has established the following policy directions：
Ⅰ.Expanding the scope of business and operating models：
1. The term “internet-only insurer” will be revised to the globally more common “digital insurer” to prevent misunderstandings. This reflects the fact that insurance companies with innovative business models from abroad may not necessarily conduct all their operations online, this is a strategic choice made by the operators.
2. As the domestic market for innovative or protection-type insurance products is limited, to ensure sustainable operations and fair competition, digital insurers are not to be limited to offering innovative or protection-type insurance products. As such, digital insurers are to be defined as those that “utilize fintech or digital technology to offer innovative insurance products and services in excess of a certain volume.” This ensures that newly established companies will show a certain level of innovation in their operations.
3. In consideration of the complexity of insurance products, there is a need for agents to explain the coverage details, or for in-person services（ex., onsite inspections of insured objects so as to determine underwriting risk or insurance claim losses）, digital insurers may, in addition to their online operations, establish real-world operations or service locations depending on customer or actual needs as part of their sales or business model. They may offer insurance products through solicitors, agents, or brokers.
II. An innovation protection period is to be provided for innovative insurance products or services developed by digital insurers：Considering that digital insurers must offer a certain proportion of innovative insurance products or services, in order to protect the creativity of pioneers and encourage innovation, a six-month innovation protection period is to be provided for said innovative insurance products or services （starting from their launch date）that may be extended where necessary by the supervisory authority.
III. Downward adjustment to paid-in capital：Considering that digital insurers must offer a certain proportion of innovative insurance products or services and that their business is relatively circumscribed, to encourage investment in the establishment of digital insurers, the FSC will lower the minimum paid-in capital amount for digital non-life and digital life insurers to NT$500 million and NT$1 billion, respectively. Where the scope and budget described in a firm’s business plan so requires, the firm may be required to increase this amount to ensure its solvency and meet future development needs.
IV. Easing requirements for founders：Taking into consideration the establishment experience of digital insurers abroad, and to open more paths to participation and the establishment of firms, so as to allow founders to be from outside of financial organizations and to increase the potential for the establishment of digital insurers having innovative business models, the regulation concerning thresholds for promoters and shareholders of financial organizations will be repealed. Instead, while applications are being processed, note will be made of whether promoters have both the professional capacity and demonstrated long-term ability to operate an insurance company.
V. Permitting foreign digital insurers to establish branches：To more rapidly improve domestic digital insurance technology and talent, and to introduce foreign digital insurers’ successful business models to Taiwan, foreign digital insurers that over the past five years have demonstrated sound business performance and financial stability and have not been penalized for material regulatory violations, and that have minimum paid-in capital of NT$2 billion or a credit rating that meets certain standards, will be allowed to apply to establish a branch in Taiwan.
VI. No time limit on establishment: As investment teams require a relatively long period of time to complete preparations and determine equity stakes, the FSC will not set a time limit on applying to establish digital insurers. This offers the market ample time to form operating teams and draft feasible business models.
The FSC also stated that the policy goal of opening up to digital insurers is to encourage businesses to develop innovative business models so as to hasten a digital transformation of the insurance industry and enhance consumer rights. Moving ahead, the FSC will continue to revise related regulations and hold public hearings to canvass the opinions of all sectors.
Contact Unit: Division of General Supervision, Insurance Bureau
Contact Number: (02)89680331
For inquiries, please email the FSC's Public Opinion Mailbox.
Ⅰ.Expanding the scope of business and operating models：
1. The term “internet-only insurer” will be revised to the globally more common “digital insurer” to prevent misunderstandings. This reflects the fact that insurance companies with innovative business models from abroad may not necessarily conduct all their operations online, this is a strategic choice made by the operators.
2. As the domestic market for innovative or protection-type insurance products is limited, to ensure sustainable operations and fair competition, digital insurers are not to be limited to offering innovative or protection-type insurance products. As such, digital insurers are to be defined as those that “utilize fintech or digital technology to offer innovative insurance products and services in excess of a certain volume.” This ensures that newly established companies will show a certain level of innovation in their operations.
3. In consideration of the complexity of insurance products, there is a need for agents to explain the coverage details, or for in-person services（ex., onsite inspections of insured objects so as to determine underwriting risk or insurance claim losses）, digital insurers may, in addition to their online operations, establish real-world operations or service locations depending on customer or actual needs as part of their sales or business model. They may offer insurance products through solicitors, agents, or brokers.
II. An innovation protection period is to be provided for innovative insurance products or services developed by digital insurers：Considering that digital insurers must offer a certain proportion of innovative insurance products or services, in order to protect the creativity of pioneers and encourage innovation, a six-month innovation protection period is to be provided for said innovative insurance products or services （starting from their launch date）that may be extended where necessary by the supervisory authority.
III. Downward adjustment to paid-in capital：Considering that digital insurers must offer a certain proportion of innovative insurance products or services and that their business is relatively circumscribed, to encourage investment in the establishment of digital insurers, the FSC will lower the minimum paid-in capital amount for digital non-life and digital life insurers to NT$500 million and NT$1 billion, respectively. Where the scope and budget described in a firm’s business plan so requires, the firm may be required to increase this amount to ensure its solvency and meet future development needs.
IV. Easing requirements for founders：Taking into consideration the establishment experience of digital insurers abroad, and to open more paths to participation and the establishment of firms, so as to allow founders to be from outside of financial organizations and to increase the potential for the establishment of digital insurers having innovative business models, the regulation concerning thresholds for promoters and shareholders of financial organizations will be repealed. Instead, while applications are being processed, note will be made of whether promoters have both the professional capacity and demonstrated long-term ability to operate an insurance company.
V. Permitting foreign digital insurers to establish branches：To more rapidly improve domestic digital insurance technology and talent, and to introduce foreign digital insurers’ successful business models to Taiwan, foreign digital insurers that over the past five years have demonstrated sound business performance and financial stability and have not been penalized for material regulatory violations, and that have minimum paid-in capital of NT$2 billion or a credit rating that meets certain standards, will be allowed to apply to establish a branch in Taiwan.
VI. No time limit on establishment: As investment teams require a relatively long period of time to complete preparations and determine equity stakes, the FSC will not set a time limit on applying to establish digital insurers. This offers the market ample time to form operating teams and draft feasible business models.
The FSC also stated that the policy goal of opening up to digital insurers is to encourage businesses to develop innovative business models so as to hasten a digital transformation of the insurance industry and enhance consumer rights. Moving ahead, the FSC will continue to revise related regulations and hold public hearings to canvass the opinions of all sectors.
Contact Unit: Division of General Supervision, Insurance Bureau
Contact Number: (02)89680331
For inquiries, please email the FSC's Public Opinion Mailbox.
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Update：
2025-05-07