Newsletter
RESTRICTIONS ON TAIWAN BRANCHES FURTHER RELAXED
On 26 August 2002, the Department of Insurance, Ministry of Finance (MOF) announced its amended Regulations on Granting Special Ap-proval and Administration of Foreign Insurance Companies. The amended regulations explicitly state that the solvency margin of a foreign rein-surance company with a branch in Taiwan is to be assessed on the company's global assets and liabilities. A requirement to increase the capital of the Taiwan branch will not be based on the working capital of the Taiwan branch alone. The regulations also allow a foreign reinsurer to make offshore investment up to 60% of its working capital in Taiwan, which is a far higher proportion than is allowed for insurance compa-nies in general.
The announcement of the amended regulations should assist in attracting foreign reinsurance companies to invest in Taiwan.