A Message from the Chairman

The Taiwan Insurance Institute (TII) was established in 1985. In the past 33 years, owing to the accumulative achievements and on-going efforts, a solid ground has been established for the TII to effectively facilitate the robust development of the local insurance industry. The interests of the insurers, the insured, as well as the general public have all been enhanced. The priority tasks in the coming years are set forth as follows:

Chairman Hsien-Nung Kuei
Hsien-Nung Kuei
1.   Introducing Insurance Supervisory Rules and Regulations in line with International Standards to Foster a favorable Business Environment
  TII will closely follow the progress of the proposed Insurance Capital Standard (ICS) of the International Association of Insurance Supervisors (IAIS) aiming at developing local insurance solvency requirement in compliance with international standards. TII will also provide local insurers with necessary assistance to adopt IFRS 17 within the timeframe announced by the supervisory authorities. In addition, the TII is obligated to construct a platform for the exchange of information in the areas of ERM and ORSA in an attempt to generate risk management culture in the insurance industry. Moreover, TII will introduce international supervisory concepts concerning the approval of new insurance products for the purpose of encouraging the design of innovative products. Last but not least, TII will make an effort to recommend the revision of the Insurance Act in order to foster a favorable business environment for the insurance industry.

2. Paying Close Attention to Issues and Solutions in the Global Insurance Industry and Providing Local Insurance Industry with Possible Countering Measures
Global insurance industry has been encountering challenges regarding global financial stability, climate change, aging population and the state-of-the-art innovation of FinTech/InsurTech. Based on its professional knowledge and expertise, TII will assist local insurance industry to develop possible solutions. Concrete measures include expanding alternative investment and risk hedging channels, maintaining the assertion of encouraging life insurance industry to invest in long term care institutions and public constructions, introducing counter-cyclical mechanism into RBC requirement, promoting compulsory liability insurance for damages from environment pollution, civil engineering completed risks insurance, cyber-security insurance, long-term care insurance, annuity insurance, health insurance, etc. TII will also endeavor to establish an integrated insurance data repository sharing system for big data analysis, commercial application and personal usage. The establishment of the integrated data repository is aiming at enhancing insurance actuary/statistics, insurance marketing, underwriting, and claim management. In 2018, for public convenience, TII will build up the electric certificate ID verification and underwriting mechanism for compulsory automobile liability insurance. In the future, TII will commit to engage in promoting the idea of paperless, electronic insurance policy agreements.

3. Assisting the Expansion of Local Insurance Industry in ASEAN Nations and South Asia for Physical Commercial Presences and Business Operations in accordance with the “New Southbound Policy”
With regard to the business expansion of Taiwanese insurers, TII will encourage insurers to pay more attention on the future development of Asian markets. The TII will enhance the on-going cooperation with related insurance institutions in ASEAN member nations, Australia, New Zealand and South Asia. Making expansion in Southeast/South Asia will not only provide overseas Taiwanese enterprises with better services but also help insurers enlarge their business scale, service domain and international development. However, TII will at the same time assist local insurance industry to continuously engage in their business operations in Mainland China.

4. Promoting public understanding through Insurance Education as well as Knowledge and Awareness Promotion & Cultivating Insurance Expertise and International Insurance Talents
TII will promote public understanding by broadening the awareness of insurance knowledge in accordance with the policy of the supervisory authorities and the “Financial Education Curriculum” developed by Taiwan Financial Services Roundtable. The TII will also host seminars, based on international trend, on topics including FinTech/InsurTech, AML/CFT, legal compliance, corporate governance, IFRS and ICS, etc. Meanwhile, under the policy of the supervisory authorities, TII will continue to provide insurance practitioners with trainings of cross-strait/international insurance knowledge and expertise.

5. Improving and upgrading the Internal Control and Management System of TII
TII takes on multiple roles responsible for the role of a leading think-tank, providing insurance actuarial/statistical results and implementing insurance education. The TII is obliged to upgrade its administrative efficiency and flexibility to build up a key foundation for tackling outstanding issues. Consequently, updating its internal control and management system, standard operating procedures, and paperwork process is crucial for TII to assume the pivotal role of serving as the bridge among the public sector, enterprises and the social public.

Insurance industry is an industry that concerns public interests. Through functioning of the insurance industry, losses of the unfortunate people may be shouldered and compensated by the majority in the society. In the future, TII will endeavor to promote the insurance core values of maintaining social stability and safety. Thus, with the support of the insurance industry, TII will continue to help maintain such nature of the industry as well as its sound business operation under the guidance of the Financial Supervisory Commission.
Hsien-Nung Kuei