To strengthen the legal framework for insurance supervision, Article 148-3 and Article 171-1 of the Insurance Act were amended and promulgated by the President on June 18, 2025. This change authorizes the Financial Supervisory Commission (FSC) to stipulate regulations concerning the outsourcing of operations by insurance enterprises and to impose penalties on insurance enterprises for outsourcing deficiencies.
Pursuant to the amendment of the Article 148-3, the FSC has drafted the "Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Insurance Enterprise Operation" (hereinafter referred to as the draft Regulations). This Regulations will replace the existing "Directions for Outsourcing Operation by Insurance Enterprise" (hereinafter referred to as the Directions). This action raises the legal hierarchy of the outsourcing rules from administrative rules to regulatory orders. The purpose is to ensure the quality of outsourced work, protect customer rights, and reduce risks for insurance enterprises.
The new draft includes several key changes compared to the Directions:
• Insurance enterprises are now allowed to outsource tax-related processes concerning land registration, addressing practical needs.
• The rule allowing insurance enterprises to entrust brokers with premium collection has been deleted, based on the understanding that policyholders are the ones who entrust brokers for this process.
• All outsourcing contracts must specify a contract term.
The FSC stated that the draft Regulations will be published in the official gazette of the Executive Yuan and on the FSC website. If you have any comments, please visit the webpage “Notice of Draft Regulations” on the FSC “Laws and Regulations Retrieving System”and state your opinions within 60 days after the announcement.