The Taiwan Financial Services Commission (FSC) has set out policy directions to revise the qualification scope and related rules for establishing internet-only insurers, including renaming the category “digital insurers” and broadening permissible products and operating models. Under the planned approach, digital insurers would not be limited to selling innovative or protection-type products, and would be defined as insurers that use fintech or digital technology to provide innovative insurance products and services above a certain volume. The framework would also allow digital insurers to operate physical service locations where needed and distribute products via solicitors, agents, or brokers. The FSC would introduce a six-month innovation protection period for innovative products or services launched by digital insurers, extendable where necessary, and would lower minimum paid-in capital to NT$500 million for digital non-life insurers and NT$1 billion for digital life insurers, with the option to require higher amounts based on a firm’s business plan to support solvency and development needs. Founder requirements would be eased by repealing thresholds tied to promoters and shareholders of financial organizations, while assessing promoters’ professional capacity and demonstrated long-term ability to operate an insurer during application review. The FSC also plans to allow qualifying foreign digital insurers to apply to establish branches in Taiwan and would remove any time limit for applying to establish a digital insurer. It will continue revising related regulations and hold public hearings to gather views from relevant sectors.

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