Newsletter
Issuing Regulations Governing Insurance Agent Companies and Insurance Broker Companies Engaging in Online Insurance Business and Online Insurance Services
According to article 163-1of the Insurance Act newly added on April 25, 2018, if approved by the competent authority, insurance agent companies and insurance broker companies may engage in related businesses with the development of electronic commerce business of insurance, and may conduct the business using electronic systems. To accommodate the foregoing, on October 24, 2018 the Financial Supervisory Commission (FSC) enacted the "Regulations Governing Insurance Agent Companies and Insurance Broker Companies Engaging in Online Insurance Business and Online Insurance Services" (the "Regulations"), based on the announcement, Ref. No. Jin Guan Bao Zong No. 10704566251, comprising 18 articles in total, and the key points are as follows：
1. Create dedicated web pages or applications:
According to article 3 of the Regulations, insurance agent companies, insurance broker companies and banks concurrently operating the insurance agent business or insurance broker business with approval of the competent authority (the "Companies"), for engaging in online insurance business and online insurance services, shall create dedicated web pages or applications for a digital insurance platform, which shall not be set up by their salespeople.
2. Additional fees of insurance products:
According to article 4 of the Regulations, the Companies conducting insurance business online shall ensure any additional fees reflect the cost saved by the insurance company.
3. Requirements for the Companies conducting insurance business online:
According to article 5 of the Regulations, the requirements for the Companies conducting insurance business online include establishing internal control systems, not having been fined more than NTD100 million nor severely punished during the most recent year, having entrusted independent auditors to review financial statements, having obtained security management system verification and having established a web flow cleaning mechanism.
4. Open up online insurance sector:
According to article 6 of the Regulations, the Companies already conducting online insurance business with insurance companies may provide insurance services online to existing customers to increase efficiency.
5. Types of insurance products and coverage limits:
According to article 7 of the Regulations, the types of insurance products and coverage limits applicable to the insurance companies doing business with the Companies shall be the same.
6. Insurance distribution models:
According to article 8 of the Regulations, the Companies shall provide customers the options to register online or in person to complete identity certification.
7. Insurance payment processing:
According to article 12 of the Regulations, consumers buying insurance online shall make premium payment to the insurance companies.
8. No insurance backdating
According to article 12 of the Regulations, under no circumstances may online insurance handled by the Companies be backdated.
9. Inclusion through internal control:
According to article 17 of the Regulations, the Companies conducting online insurance business shall include the Regulations in their items of internal control.