Taiwan Financial Services Commission has opened applications for the establishment of “digital insurers”, supported by draft amendments and related administrative directions that expand the business scope and operating models previously applicable to internet-only insurers. The revised regulations and corresponding administrative rules are expected to be promulgated in the near future. The administrative framework includes an innovation activity threshold requiring a digital insurer, from the year after it starts operating and for the period specified in its establishment approval letter, to ensure that premium income or policy counts from FSC-approved innovative insurance products and services account for at least 20 percent of total premium income or total policies sold each year, with reporting due within two months after each fiscal year-end. The package also sets review documentation and procedures for innovative products and services, adds innovation-related documentation to life and non-life product review annexes, exempts digital insurers operating for less than one year from certain online insurance qualification conditions, and updates committee governance by adding fintech expertise to product review committees and revising the mandate and composition of the Digital Insurers Review Committee. A briefing session on the application process will be held in the near future, and applicant reviews will focus on business model forward-looking features, fintech innovation, paid-in capital adequacy, the qualifications of promoters and responsible persons, and the management team’s compliance capabilities.

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