Newsletter
Amendments to the Regulations Governing Online Insurance Business and Online Insurance Services of Insurance Agent Companies and Insurance Broker Companies
The Regulations Governing Online Insurance Business and Online Insurance Services of Insurance Agent Companies and Insurance Broker Companies (the "Regulations") were adopted pursuant to Article 163-1 of the Insurance Act and issued and implemented on October 24, 2018. To adapt to the establishment of internet-only banks, improve the convenience of online insurance, strengthen consumer protection, the Regulations were amended with reference to the Directions for Insurance Enterprises Conducting Electronic Commerce and in response to practical operational needs. Seven of the 18 Articles of the current Regulations were amended this time. Main points of the amendments are as follows:
1. To clearly define online insurance business and online insurance services, increase convenience and protect consumers who purchase ancillary insurance products through other online platforms, the definitions of online insurance business and online insurance services were amended to allow insurance agent companies and insurance broker companies to collaborate with companies in different industries to promote ancillary insurance products or services online. The amendment also stipulates that the designated section on the website, webpage or mobile application (App) insurance platform of the company in different industry shall be managed and maintained by the insurance agent company or insurance broker company and must disclose relevant information. (Amendments to Articles 2, 3, 8 and 10 of the Regulations)
2. To adapt to the establishment and special characteristics of the operation of internet-only banks, when an internet-only bank which also engages in insurance agency or insurance brokerage business applies to participate in online insurance business, this amendment set out the applicable financial and business qualification requirements. This amendment also stipulates major disciplinary penalties and administrative disciplinary actions according to Article 2 of the Guidelines for Public Announcements of Major Disciplinary Penalties for Violations of Financial Laws and Regulations of the FSC. (Amendment to Article 5 of the Regulations)
3. To enhance convenience of online insurance identity verification, this amendment allows the use of online bank account or digital deposit account at a subsidiary bank of the same financial holding company, or member account with a cross-industry collaboration partner for registration and identity verification process after obtaining consent from the consumer. (Amendment to Article 8 of the Regulations)
4. To ensure that consumers fully understand the content and investment risks associated with investment-linked annuities, and to protect consumers' rights and interests, the amendment stipulates that insurance agent companies and insurance broker companies must establish relevant control mechanisms and conduct telephone interviews with those buying investment-linked annuities from them. (Amendment to Articles 10 and 13 of the Regulations)
5. To strengthen the supervision and implementation of procedures of online insurance business and online insurance services, this amendment stipulates that insurance agent companies and insurance broker companies shall incorporate the requirements under the Regulations into their internal standards and procedures for business solicitation. (Amendment to Article 17 of the Regulations)