INSURERS MUST DISCLOSE COMPENSATION PAID TO THEIR DIRECTORS, SUPERVISORS AND PRESIDENTS

07/01/2009

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The Financial Supervisory Commission (FSC) issued a ruling on 28 April 2009, effective 1 January 2009, stating that when filing annual financial statements and consolidated financial statements for the previous year with the Insurance Bureau, insurers, excluding professional reinsurers and foreign insurers, in any of the following situations must disclose the names of each directors, supervisors and president and the amounts of compensation paid to these individuals:
	l	The RBC ratio shown in the latest financial statements audited by certified public accountants, or examined and adjusted by the FSC, is below 200%.
	l	Net loss was posted for the last two consecutive fiscal years.
	l	Insurers, after being requested by the FSC to increase capital, failed to complete the capital increase in accordance with the capital-increase proposal.
	l	For insurers whose shares are publicly offered, their directors or supervisors failed to comply with the shareholding requirements under Article 2 of the Rules Governing Shareholding Percentage of Directors/Supervisors and Implementation of Examination for three consecutive months or more.
	l	The average ratio of directors or supervisors creating pledges over their shares in any three months of the latest year is more than 50%.
	Insurers not in any of the above situations may choose to disclose the compensation paid to their directors, supervisors and president in the last fiscal year either by disclosing the consolidated amount with the directors, supervisors and president listed by ranks or by disclosing each name of the directors, supervisors and president and the amount paid to the individual.