To promote digital insurers, the FSC will notice of draft amendments to the “Regulations for Establishment and Administration of Insurance Enterprises ”and related regulations
2025-05-07
The Financial Supervisory Commission（FSC） announced policy planning direction for digital insurers on 26 December 2024. To promote this policy, the FSC will notice of draft amendments to related regulations, including the “Regulations for Establishment and Administration of Insurance Enterprises,”“Regulations Governing Pre-sale Procedures for Insurance Products,”“Regulations Governing Business Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises,”“Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises,”“Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises,”“Regulations Governing Non-Life Insurance Enterprises Engaging in Injury Insurance and Health Insurance” and “Regulations for Establishment and Administration of Foreign Insurance Enterprises.”
Key aspects of the revisions are as follows：
Ⅰ.Regulations for Establishment and Administration of Insurance Enterprises：
1.Having considered the developmental experience of both domestic and international markets, the term “internet-only insurer” will be revised to the globally more common “digital insurer,” the scope of business and operating models will be expanded, the definition will be revised, and an innovation protection period will to be provided for innovative insurance products or services developed by digital insurers.（Article 29-1）
2.To allow ample time for interested parties to form operating teams and draft feasible business models, Article 29-2 will be deleted, and no time limit will be set for applying to establish digital insurers.
3.To encourage investment in the establishment of digital insurers, the minimum paid-in capital amount for digital non-life and digital life insurers will be reduced to NT$500 million and NT$1 billion, respectively. Where the scope and budget described in a firm’s business plan so indicate, the firm may be required to increase this amount to ensure its solvency and meet future development needs.（Article 29-3）
4.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, Article 29-4 will be deleted, meaning that there will be no requirement that promoters of digital insurers must include financial institutions or individuals with fintech expertise.
5.To ensure that digital insurers show a certain level of innovation in their operations, operational model described in the business plan shall include relevant information, the potential risks arising from the use of financial technologies or digital tools, and corresponding risk management measures.（Article 29-6）
6.Considering that it is difficult to conduct insurance operations through online methods alone, Article 29-7 will be deleted, and digital insurers are to be permitted to establish real-world operations or service locations depending on customer or actual needs as part of their sales or business model.
7.Relevant application documents to establish digital insurers will be revised.（Appendix of Article 6）
II.Regulations Governing Pre-sale Procedures for Insurance Products：
1. In line with the revision to the name of “internet-only insurers” to “digital insurers,” the definition of such a provider will be amended that a certain percentage of the insurance products or services offered must be innovative. It will be clearly stated that digital insurer are to apply for approval for innovative insurance products from the competent authority prior to them for sale.（Article 16-1）
2. In line with Article 29-1 of the“Regulations for Establishment and Administration of Insurance Enterprises,” it will be stipulated that, for a specified period, no other insurance company may apply for or offer for sale innovative insurance products developed by a digital insurer that have been approved of by the competent authority, unless so authorized by the competent authority. Violation of this provision will be added as a reason for the competent authority to return the product for non-review or to order the insurance industry to cease selling the product. （Article 30）
III.Regulations Governing Business Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises： In line with the revision of the name of “internet-only insurers” to “digital insurers,” such firms will no longer be restricted to offering their products online only, Article 16-1 will be deleted.
IV.Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises and Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises：To enhance public awareness of the scope of insurance products or services protected under the innovation mechanism for digital insurers, it will be stipulated that digital insurers must disclose relevant information on innovative insurance products or services approved by the competent authority. （Article 11）
V. Regulations Governing Non-Life Insurance Enterprises Engaging in Injury Insurance and Health Insurance：The term “internet-only insurers” will be revised to “digital insurers.” （Article 3）
VI. Regulations for Establishment and Administration of Foreign Insurance Enterprises：Qualification requirements and necessary documents for foreign insurance institutions applying to establish digital insurance branches within the territory of the Republic of China （Taiwan） to conduct insurance business will be stipulated. （Article 6-1, 9-1）
The FSC stated that the above draft amendments will be announced in accordance with the the “Administrative Procedure Act”. So that a diverse variety of opinions may be considered and to ensure that the amendments are comprehensive in outlook, the draft amendments will be published in the Executive Yuan Gazette and posted on the FSC’s website. Interested parties are invited to submit comments within 60 days of the date of the announcement via the aforementioned website. In addition, to help investment teams establish digital insurance companies, the FSC will hold a regulatory clinic and publish relevant information on the digital insurers page of the FSC website.
Contact Unit: Division of General Supervision, Insurance Bureau
Contact Number: (02)89680331
For inquiries, please email the FSC's Public Opinion Mailbox.
Key aspects of the revisions are as follows：
Ⅰ.Regulations for Establishment and Administration of Insurance Enterprises：
1.Having considered the developmental experience of both domestic and international markets, the term “internet-only insurer” will be revised to the globally more common “digital insurer,” the scope of business and operating models will be expanded, the definition will be revised, and an innovation protection period will to be provided for innovative insurance products or services developed by digital insurers.（Article 29-1）
2.To allow ample time for interested parties to form operating teams and draft feasible business models, Article 29-2 will be deleted, and no time limit will be set for applying to establish digital insurers.
3.To encourage investment in the establishment of digital insurers, the minimum paid-in capital amount for digital non-life and digital life insurers will be reduced to NT$500 million and NT$1 billion, respectively. Where the scope and budget described in a firm’s business plan so indicate, the firm may be required to increase this amount to ensure its solvency and meet future development needs.（Article 29-3）
4.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, Article 29-4 will be deleted, meaning that there will be no requirement that promoters of digital insurers must include financial institutions or individuals with fintech expertise.
5.To ensure that digital insurers show a certain level of innovation in their operations, operational model described in the business plan shall include relevant information, the potential risks arising from the use of financial technologies or digital tools, and corresponding risk management measures.（Article 29-6）
6.Considering that it is difficult to conduct insurance operations through online methods alone, Article 29-7 will be deleted, and digital insurers are to be permitted to establish real-world operations or service locations depending on customer or actual needs as part of their sales or business model.
7.Relevant application documents to establish digital insurers will be revised.（Appendix of Article 6）
II.Regulations Governing Pre-sale Procedures for Insurance Products：
1. In line with the revision to the name of “internet-only insurers” to “digital insurers,” the definition of such a provider will be amended that a certain percentage of the insurance products or services offered must be innovative. It will be clearly stated that digital insurer are to apply for approval for innovative insurance products from the competent authority prior to them for sale.（Article 16-1）
2. In line with Article 29-1 of the“Regulations for Establishment and Administration of Insurance Enterprises,” it will be stipulated that, for a specified period, no other insurance company may apply for or offer for sale innovative insurance products developed by a digital insurer that have been approved of by the competent authority, unless so authorized by the competent authority. Violation of this provision will be added as a reason for the competent authority to return the product for non-review or to order the insurance industry to cease selling the product. （Article 30）
III.Regulations Governing Business Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises： In line with the revision of the name of “internet-only insurers” to “digital insurers,” such firms will no longer be restricted to offering their products online only, Article 16-1 will be deleted.
IV.Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises and Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises：To enhance public awareness of the scope of insurance products or services protected under the innovation mechanism for digital insurers, it will be stipulated that digital insurers must disclose relevant information on innovative insurance products or services approved by the competent authority. （Article 11）
V. Regulations Governing Non-Life Insurance Enterprises Engaging in Injury Insurance and Health Insurance：The term “internet-only insurers” will be revised to “digital insurers.” （Article 3）
VI. Regulations for Establishment and Administration of Foreign Insurance Enterprises：Qualification requirements and necessary documents for foreign insurance institutions applying to establish digital insurance branches within the territory of the Republic of China （Taiwan） to conduct insurance business will be stipulated. （Article 6-1, 9-1）
The FSC stated that the above draft amendments will be announced in accordance with the the “Administrative Procedure Act”. So that a diverse variety of opinions may be considered and to ensure that the amendments are comprehensive in outlook, the draft amendments will be published in the Executive Yuan Gazette and posted on the FSC’s website. Interested parties are invited to submit comments within 60 days of the date of the announcement via the aforementioned website. In addition, to help investment teams establish digital insurance companies, the FSC will hold a regulatory clinic and publish relevant information on the digital insurers page of the FSC website.
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