Newsletter
AMENDMENTS TO INSURANCE LAW DRAFTED
The Ministry of Finance has finished drafting amendments to the Insurance Law, in line with the recommendations of its Insurance Reform Committee and with practical regulatory needs. The draft, comprising 40 amended and additional articles, has been submitted to the Executive Yuan for review. The main points are as follows:
Restrictions on insurance companies' use of funds are to be relaxed.
Regulatory mechanisms for dealing with unsound insurance companies are to be strengthened.
A risk-based capital ratio system is to be introduced to reduce the insolvency risk.
Insurance companies' permitted scope of operations is to be expanded to allow property insurers to engage in personal injury insurance business with the approval of the regulatory authority.
Stabilization fund functions are to be strengthened.
An earthquake insurance mechanism is to be established.
Measures are to be introduced to improve insurance market discipline, to establish a certified actuaries system and an insurance industry public information system, and to strengthen insurance companies' internal control and audit systems.