Amendment to the "Regulation for Establishment, Transfer, or Withdraw of Branch Units by Insurance Enterprises"
2020-07-15
In order to accommodate business needs and further clarify the definition and permissible business scope of insurance enterprise branch units, the FSC issued an amendment to the aforementioned Regulations on 15 July 2020. Key points of the amended provisions are as follows:
- The amended Regulations set out three clearly demarcated levels for domestic branch units. Insurers are now allowed to additionally establish service centers, and are allowed to establish insurance counters at domestic airport terminals to provide insurance services.
- To respond to business needs, the amended Regulations newly provide that when the available space at the address that appears on the business license of an insurer’s head office or branch is not enough, the insurer may establish one domestic offsite work location and adopt rules governing whether that offsite work location is allowed to engage in business dealings with the public.
- Newly added provisions allow an insurer to set up work locations that will not be used for business dealings with the public, but to house, for example, a computer center, an education & training center, a call center, or a storage facility. The amended Regulations also prohibit the use of such work locations for accepting and processing applications for various insurance products or services.
- Newly added provisions stipulate that when an insurer intends to relocate or withdraw a branch office (or branch cooperative) or a work location not used for business dealings with the public, the insurer must, in order to protect the interests of employees, include an employee placement plan among the documents it furnishes in support of its application for approval of the relocation or withdrawal.
- Insurers must reorganize their domestic branch units within 6 months of implementation of the aforementioned Regulations.
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Update：
2020-10-27