Newsletter
LIFE POLICIES SHOULD ADOPT FLOATING INTEREST RATES
According to the director of DOI, to enable pre-set interest rates on life policies to reflect market interest rate levels, and protect insurers from continuously declining market rates, the MOF has informed insurers that from the beginning of next year it will require them to adopt floating interest rates, and to adjust their preset interest rates in accordance with an interest rate index. The index will be set by the Life Insurance As-sociation, which will report its design for the index to the MOF by the end of this year. The DOI director also urged insurers not to stick to marketing only traditional policies, but would also make an effort to develop variable life products. Variable life policies had only recently been launched in Taiwan, but if their market share could be increased, this should provide greater business opportunities for insurers.