Newsletter
FTC REVIEWS NON-LIFE INSURANCE TARIFFS
The Non-Life Insurance Association has recently called a meeting of all non-life insurance com-panies to discuss the Fair Trade Commission (FTC) intention to investigate such companies on suspicion of contravening the Fair Trade Law (FTL). Because tariff schemes and di-rect-business discounts for non-life insurers are implemented only after review and approval by the Ministry of Finance (MOF), the association has initially decided to submit all MOF approval documents to the FTC for inspection.
Insurance companies state that under the relevant legislation, compulsory automobile and motor-cycle liability insurance business is conducted by the private sector but under the auspices of the government, and that the MOF regulates all as-pects of such business including tariff schemes and discount terms. The various insurers merely provide underwriting and claim adjusting ser-vices at the mandate of the MOF to members of the public wishing to take out compulsory car or motorcycle insurance.
However, with reference to the association's practice of setting uniform fire and mo-tor-vehicle insurance policy terms and premiums for insurance business within Taiwan, a member of the FTC stated that if the association has a defense based on government requirements or statutory requirements, the FTC may seek a compromise or changes in the law, and is unlikely to suddenly declare its practices illegal; however, this would be a matter for the com-mission to determine.