Newsletter
Amendments to the Regulations Governing Foreign Investments by Insurance Companies
The Regulations Governing Foreign Investments by Insurance Companies (the "Regulations") were implemented on March 6, 1993 and have been amended 25 times. The latest amendment was made on December 31, 2019. This current amendment (the "Amendment") was made considering policyholders' demand for foreign-currency denominated insurance policies and to improve the asset-liability allocation efficiency of life insurance enterprises engaging in foreign-currency denominated non-investment-linked life insurance business. The Amendment includes amendments to two articles, and the key points are as follows:
1. To improve the asset-liability allocation efficiency of life insurance enterprises engaging in foreign-currency denominated non-investment-linked life insurance business, considering policyholders' demand for foreign-currency denominated insurance and exchange-rate risk tolerance, the balance of development between NTD denominated and foreign-currency denominated insurance products, and to avoid double counting of Excluded Foreign Investment Amount due to investments in Sukuk issued by foreign issuers on the professional board of international bond market, amendment was made to allow the sales of foreign-currency denominated non-investment life insurance products currently made by life insurance enterprises to be excluded from the calculation formula of the foreign investment amount after obtaining approval. (Amendment to Article 15-2)
2. To accommodate the percentage increase from 35% to 40% in the formula stipulated in Article 15-2, amendment was concurrently made to the investment limitation stipulated in Subparagraph 2 of Paragraph 8 of Article 15. (Amendment to Article 15)
3. To maintain consistency in the content of the Insurance Enterprise Foreign Investment Quota Application Form and the wording of the Regulations, amendment was also made to the content of the Insurance Enterprise Foreign Investment Quota Application Form. (Amendment to Appendix 2 of Article 15)