Taiwan's Financial Supervisory Commission has set out its policy planning direction for revising the qualification framework for establishing “internet-only insurers”, moving to a broader “digital insurer” concept and easing several entry and operating constraints while requiring a baseline level of innovation. The planned changes include renaming “internet-only insurer” to “digital insurer” and redefining digital insurers as firms that use fintech or digital technology to provide innovative insurance products and services above a certain volume, rather than limiting them to innovative or protection-type products. Digital insurers would be permitted to add physical service locations where needed and distribute products through solicitors, agents, or brokers. The FSC also proposes a six-month innovation protection period for innovative products or services developed by digital insurers, extendable by the supervisor. Minimum paid-in capital would be lowered to NT$500 million for digital non-life insurers and NT$1 billion for digital life insurers, with scope for higher requirements based on a firm’s business plan. Founder requirements would be eased by repealing thresholds that apply to promoters and shareholders of financial organizations, with applications instead assessed on promoters’ professional capacity and demonstrated long-term ability to operate an insurer. Foreign digital insurers meeting specified criteria, including five years of sound performance, no penalties for material regulatory violations, and either paid-in capital of at least NT$2 billion or a credit rating meeting certain standards, would be allowed to apply to establish a branch in Taiwan. The FSC also plans to remove any time limit for applying to establish digital insurers. Further revisions to related regulations and public hearings are planned to gather views from stakeholders.
Taiwan Financial Services Commission 2025-05-07
Taiwan's Financial Supervisory Commission sets new policy direction for digital insurers including broader operating scope and lower minimum capital
Taiwan's Financial Supervisory Commission will revise the qualification framework for "internet-only insurers," transitioning to a broader "digital insurer" concept with eased entry and operating constraints. Changes include renaming to "digital insurer," allowing physical service locations, and lowering minimum paid-in capital requirements. Foreign digital insurers meeting specific criteria may apply to establish a branch in Taiwan, with further regulatory revisions and public hearings planned.