Taiwan to revise insurance fee rules for IFRS 17 in 2027

These changes aim to align the definition of “substantive operating revenue”.

Taiwan’s Financial Supervisory Commission (FSC) plans to revise the calculation of supervisory fees for insurance companies in line with the upcoming adoption of International Financial Reporting Standard 17 (IFRS 17), which will take effect in 2026.

The FSC has proposed amendments to Article 5 of the “Regulations Governing the Standards of the Calculation and Payment of Examination Charges and Annual Supervisory Fees and the Collection of Official Fees.” 

These changes aim to align the definition of “substantive operating revenue” with the new IFRS 17 financial reporting framework.

Under the proposed revision, the updated definition will be applied starting from the calculation of supervisory fees for the year 2027. 

Key changes include the addition of "insurance revenue," income and expenses from reinsurance contracts held, specific components of net investment income, asset management service revenue, and other operating income. 

Deductions will include insurance service expenses, finance expenses related to reinsurance contracts, and changes in certain reserves.

The FSC noted that the amendment was developed following discussions with industry stakeholders. 

The draft regulation and explanatory materials will be published in the Executive Yuan Gazette and on the FSC’s regulation draft announcement platform, where the public may submit feedback within 60 days from the date of publication.