The FSC amended the Point 3 of the Directions on Jan 26,2018 to strengthen foreign exchange reserve mechanism, in response to the continuous appreciation of NT$ relative to US$ caused by several factors since the beginning of last year (2017), including international situation and market development. The appreciation resulted

in foreign exchange loss of the life insurance industry, and for several months, the balances of reserve set aside by multiple life insurance companies for forex rate fluctuation reached its minimum required level due to forex loss offsetting. The amendments include: increasing the fixed percentage that shall be set aside for monthly reserve, changing calculation formula for required reserve level after