To ensure that Taiwanese insurers are operated in a safe and sound manner, and to ensure that new contract policy reserves reflect market interest rates in a timely manner, the FSC announced that the policy reserve rates that applied to new life insurance policies in the second half of 2020 will remain unchanged in 2021. This decision: (a) was based on the fact that government bond yields in the second half of 2020 differed little from the first half; and (b) reflected the FSC’s overall thinking regarding premium rate stability, consumer interests, and the operating costs of insurers. The FSC will continue to monitor market rates over the coming year and discuss the possibility of adjustments if the need arises.