Newsletter
NEW REGULATIONS GOVERNING ESTABLISHMENT PERMIT AND ADMINISTRATION OF FOREIGN INSURANCE COMPANIES
On 15 January 2008, the Financial Supervisory Commission announced amendments to the Standards for Permit and Regulations Governing Administration of Foreign Insurance Companies and renamed it as the "Regulations Governing Establishment Permit and Administration of Foreign Insurance Enterprises." The main content of the amendments is as follows:
‧A new provision stipulates that the powers of the board of directors or the shareholders' meeting of a foreign insurance company under the Insurance Act and other relevant laws and regulations may be exercised by the responsible person of its Taiwanese branch within the scope lawfully authorized by the foreign company (Paragraph 2, Article 2).
‧A new provision requires a foreign insurance company that has been established for less than three years to establish a branch in Taiwan (Paragraph 2, Article 6).
‧A new provision stipulates that if due to limitations imposed by the applicable foreign law, a foreign insurance company applying for establishment permit is unable to provide any required document, it must provide equivalent documents for reference (Paragraph 2, Article 9).
‧The responsible person of the Taiwanese branch of a foreign insurance company is required to report to the competent authority within 30 days from the occurrence of specified events relating to the foreign company (Article 16).
‧The old Articles 19 and 20 were deleted as the criteria for underwriters, adjusters and actuaries have been provided in other relevant regulations.
‧To comply with the implementation of the risk-based capital system for insurance companies and to protect policyholders' rights and interests, amendments to the Regulations require that a foreign insurance company's ratio of equity capital to risk-based capital must be in compliance with Article 143-4 of the Insurance Act; if a foreign insurance company is not in compliance with the solvency standards required by its domestic country, the responsible person of its Taiwanese branch must report to the competent authority in writing (Article 21).