Taiwan FSC proposes rule changes to launch digital insurers

The commission wants to require 20% innovation output from new insurers.

Taiwan’s Financial Supervisory Commission (FSC) has proposed amendments to key insurance regulations to support the launch of digital insurers and drive InsurTech growth.

Announced on 11 April, the changes expand the scope and business models for what were previously called “internet-only insurers,” now rebranded as “digital insurers.”

Under the revised rules, digital insurers must ensure that at least 20% of their annual premium income or policies sold come from FSC-approved innovative products or services, starting the year after operations begin. 

This must be reported within two months after the fiscal year ends.

The FSC also introduced new guidelines for product reviews, eased entry rules for startups, and added fintech experts to the product review committee. 

The review body for digital insurer applications was also renamed and expanded.

Applications to establish digital insurers will open soon. 

The FSC will hold a briefing to outline the process and will evaluate applicants based on innovation, fintech use, capital, and management qualifications. Thirteen updated or newly issued regulations support the rollout.