Taiwan’s Financial Supervisory Commission (FSC) has published draft amendments to multiple insurance regulations to implement its policy direction for digital insurers, including renaming the current “internet-only insurer” framework to “digital insurer”, expanding permitted business and operating models, and introducing an innovation protection mechanism for approved digital-insurer innovations. Under the proposed changes, the FSC would remove the time limit for applying to establish a digital insurer, drop the requirement that promoters must include financial institutions or individuals with fintech expertise, and allow digital insurers to operate physical locations where needed rather than being limited to online-only operations. Minimum paid-in capital would be reduced to NT$500 million for digital non-life insurers and NT$1 billion for digital life insurers, with the FSC retaining the ability to require higher capital where the business plan’s scope and budget indicate this is necessary for solvency and development. The draft also adds requirements for business plans to describe the digital/fintech tools used, associated risks, and risk management measures; requires prior approval for innovative products offered by digital insurers; restricts other insurers from applying for or selling FSC-approved innovative products developed by a digital insurer for a specified period unless authorised; and introduces disclosure requirements covering protected innovative products or services. Additional provisions would set qualification and documentation requirements for foreign insurers seeking to establish digital insurance branches in Taiwan. The FSC will publish the draft amendments in the Executive Yuan Gazette and on its website, with a 60-day period for public comments from the date of announcement. It also plans to hold a regulatory clinic and post supporting information on its digital insurers webpage.
Taiwan Financial Services Commission 2025-05-07
Taiwan Financial Supervisory Commission consults on rule changes to broaden digital insurer models and lower minimum capital requirements
Taiwan's Financial Supervisory Commission has released draft amendments to support digital insurers, renaming the "internet-only insurer" framework to "digital insurer" and expanding business models. Key changes include removing the time limit for establishing digital insurers, reducing minimum paid-in capital requirements, and allowing physical operations. The draft also introduces innovation protection mechanisms and sets requirements for foreign insurers establishing digital branches in Taiwan.