In 2021, the Taiwan Insurance Institute (TII) stepped up efforts to more effectively implement its major tasks. With a successful first year of the authentication & validation platform and the digital archive for electronic insurance policies in 2021, 15 non-life insurance companies joined the platform and enjoyed the use of authentication, validation, and storage of electronic insurance policies. In 2021, 8,735,634 electronic insurance policies were authenticated, validated and stored by TII, of which 3,784,794 were voluntary auto insurance policies and 4,950,840 others. TII issued 18,305,403 electronic Compulsory Automobile Liability Insurance cards (e-CALI cards), which accounted for 99.72% of total CALI effective policies in 2021.

In its provision of insurance education and training services, in 2021 TII hosted 251 insurance talent cultivation programs (including 7 seminars) with 10,703 participants. Topics included IFRS 17, ICS 2.0, corporate governance, green finance/ESG, elderly/vulnerable financial consumer protection, cyber security, Fintech/Insurtech, AML/CFT, and insurance executive series. In addition, TII made efforts to prepare more digital course modules to enable insurance sales agents to take the mandatory 6 hours (12 course units) of legal compliance training online. As a result, by the end of 2021 approximately 290,000 sales agents had completed the digital courses.

Despite the ongoing Covid-19 travel ban, in 2021 TII overcame the obstacles and hosted two major international events. The Conference on Adopting IFRS 17—Rethinking the Future Direction of Management Strategies brought together Dr. Ann Tarca, member of the International Accounting Standards Board, and experts from Australia, South Korea, and Singapore in a real-time webinar. The 2022 Insurance and Economic Development Forum saw Jonathan Dixon, secretary-general of IAIS, and Dean Cameron, President of NAIC, articulate their forward-looking views on the development of the insurance industry in pre-recorded videos. Also, participants at the 2021 International Training Program for Taiwan Insurance Industry Elites attended a webinar and held discussions with the Financial Services Consumer Panel, a consulting panel within the Financial Conduct Authority of the UK. Online meetings also enabled them to virtually visit the insurance supervisory agencies of Vietnam and Myanmar and the insurance associations of Malaysia and Cambodia. For the first time, TII also hosted the 2021 Cross-Strait Insurance Law Seminar as a hybrid conference, with in-person meetings in Taipei and Shanghai connected virtually.

It is worth mentioning that the 9th Taiwan Insurance Excellence Award ceremony was held by TII on October 1, 2021. The biennial event attracted 39 insurance companies with 152 entries in competition for various awards. The eight review panels comprised a total of forty people, including scholars, insurance experts, and prominent figures. Twenty-nine insurance companies passed the qualifying round and 79 awards were given out. The award ceremony served to recognize insurance expertise and service quality and further encouraged insurance practitioners to focus on the core value of maintaining public peace of mind.

In 2021, TII was again commissioned by the Ministry of Education’s K-12 Education Administration to provide Student Group Insurance actuarial and R&D and to develop FAQs for insurance contract terms and conditions. TII helped implement government policy to protect student health from grades 1 through 12 and alleviate the economic burden on students’ families.

In 2021, as part of the preparation work for Taiwan’s eventual adoption of IFRS 17, TII continued to follow up the most up-to-date information on IFRS 17, develop FAQs after the discussion of doubts or disputes on the translation of IFRS 17, and quarterly post these updates on the TII website for the public. TII also completed the review of the quarterly progress reports that insurance companies presented to their boards of directors and submitted the summary evaluation comments to the supervisory authorities. In addition, TII worked out related insurance rules and regulation revision suggestions for the adoption of IFRS 17 and submitted the suggestions to the supervisory authorities in 2021.

In accordance with the FSC announcement that the new generation insurance solvency requirements will be based on the Insurance Capital Standard 2.0 (ICS) issued by the IAIS, in 2021 TII designed a yield curve scenario and additional test scenarios, developed a non-life risk & catastrophe risk related standard document, and produced Quantitative Impact Study (QIS) tabular forms and guidance on completion. TII also collected questions regarding QIS, hosted QIS meetings to answer questions on the tabular forms, and carried out two QISs in 2021. Following these initiatives, TII produced analytical reports on major QIS results for 2020 and 2021 and in 2021 prepared a life experience table for life insurance and submitted it to the supervisory authorities.

TII was set up to facilitate the sound development of the insurance industry and promote the interests of insurers, the insured, and the wider public. Founded in 1985, in 2022 TII enters its 37th year. The past 37 years of hard work and accomplishments have laid a solid foundation on which TII will continue to fulfil its missions. In addition to the regular duties and ad-hoc assignments, TII’s principal tasks for the coming years are as follows:

1. Setting up an inquiry platform for insurance policies in force and broadening the application of the Authentication & Validation Platform and the Digital Archive to cover more types of insurance.

   The supervisory authorities have asked TII to set up an Inquiry Platform to enable policyholders to make inquiries about in-force insurance policies. The platform is being set up for the convenience and benefit of policyholders and to enhance consumer protection.

   TII will continue to help insurance companies issue electronic insurance policies to foster a safe, convenient, highly efficient, cost-effective, paperless environment, and in turn promote efficiency and service quality in the insurance industry. TII has successfully brought non-life insurance companies onto the Authentication & Validation Platform and the Digital Archive for Electronic Insurance Policies; however, there is room to broaden the application of electronic insurance policies to include more types of insurance contracts. TII will review the difficulties and obstacles encountered in the issuance of electronic policies and will gradually enlarge the application of the Authentication & Validation Platform and the Digital Archive to include more kinds of insurance contracts. In addition, TII will continue to refine the authentication and validation services for e-CALI cards. TII is determined to thoroughly implement the paperless insurance contract policy.

2. Cultivating insurance professionals and international talent, boosting green/ESG/cybersecurity/vulnerable consumer protection capacity building, and improving online training courses for insurance sales agents
   TII will continue to offer insurance professional training programs, seminars, and a variety of certified examinations. TII will also target training and capacity building for insurer executives on important topics such as IFRS 17, ICS, corporate governance, climate change, elderly/vulnerable financial consumer protection, cyber security, Fintech/Insurtech, and AML/CFT. We aim to use a top-down method to forge an appropriate corporate culture in every insurance company.

   TII will follow the supervisory authorities’ Green Finance Action Plan 2.0 and the Roadmap of Sustainable Development for Listed/Quoted Companies to strengthen our Talent Cultivation Plan for ESG/Sustainable Finance. To this end, TII will not only provide training programs for executives at insurers and listed/quoted companies, but also design suitable training courses for insurance company managers and employees.

   TII will continue to improve online training courses for sales agents and significantly increase the number of digital course units. At the same time, we will continue to carry out satisfaction surveys on training courses and speakers and organize courses to raise awareness of financial inclusion and general knowledge of insurance. TII will also continue to provide insurance practitioners with international insurance training programs to cultivate international professionals.

    

3. Completing the current stages of IFRS 17 and ICS 2.0 adoption tasks

   Following the IFRS 17 implementation schedule announced by the supervisory authorities, TII will compile the results of discussions about the adoption of IFRS 17 in various meetings in the Transition Resources Group. We will also follow up on the most up-to-date international information concerning IFRS 17 and post these updates on our official website for public reference. TII will continue to review quarterly progress reports submitted to the board of directors at each insurance company and provide supervisory authorities with our evaluations. TII will work with other entities in the Transition Resources Group to explore solutions for outstanding issues, including insurance reserves, products, financial statements, and fund allocations. Finally, TII will, at the request of the supervisory authorities, review decrees, rules, and regulations and make suggestions for amendments.

   TII will follow the supervisory authorities’ policy to develop the new generation of insurance solvency requirements on the basis of ICS 2.0 and continue to study and analyze the latest international regulatory developments. At the request of the supervisory authorities, TII will also continue to help insurance companies undertake parallel QIS tests and evaluate possible effects. In addition, we shall discuss amendments to supervisory requirements for local markets and submit our proposals to the supervisory authorities.

4. Continuing to work with insurance organizations in Asia-Pacific nations

   TII will reinforce co-operation with insurance institutes and organizations in the Asia-Pacific region by signing MOUs, hosting international seminars and workshops, and sharing information on overseas markets. TII will continue to encourage Taiwanese insurers to watch development in Asia-Pacific nations.

   TII will continue to collect international information, encourage insurers to focus more on the future development of Asia-Pacific markets, and enhance ongoing cooperation with insurance institutions in the region. Expansion in the Asia-Pacific region will both provide overseas Taiwanese enterprises with better services and enable the Taiwanese insurance industry to expand into markets in the region. In addition, TII will study the initiatives and issues papers of leading international insurance organizations, including IAIS. TII will also continue to pay attention to the business prospects of Taiwanese insurers in Mainland China.

5. Enhancing insurance-related research

   TII will bear in mind supervisory policies and market trends while carrying out insurance-related research. In order to follow the Financial Cyber Security Action Plan announced by the supervisory authorities, TII will undertake a special study on how to promote the development of insurance policies for the protection of cyber security in Taiwan. In addition, TII will conduct a study to establish valuation indicators for sustainable finance rating in the insurance sector in line with the supervisory authorities’ Sustainable Finance Assessment project and the national development goal of net-zero emissions by 2050.

   TII will track the progress of international finance and economic development and compile an analysis report on the forecast of international and domestic economic outlooks and insurance market development. TII will also undertake a qualitative survey of insurance company executives on insurance market and economy forecasts in 2023. TII is planning to host a seminar in December 2022 to share the results of the survey.

6. Upgrading internal controls, management, and the internal audit system

   TII will continue implement the annual internal audit plan in accordance with its internal control and audit guidance. Management control will be undertaken before the ordinary internal audit. The core operations of each unit, opinions issued by the supervisory authorities after on-site examinations, and items previously not audited will be taken into consideration when setting items for the internal audit. The internal audit will ensure the ongoing effectiveness of internal control at TII and help the TII board of directors and executives review and evaluate the internal control framework, determine its effectiveness, and assess the accuracy of performance results.

   To improve the efficiency of our internal administration in the preparation of actuarial and statistical results and carrying out insurance training, TII will continue to update SOPs, MIS, and paperwork processes. This is aimed at ensuring the quality of TII’s operations and adequately implementing the updated internal control and management system.

The function of insurance is to spread the losses of those afflicted by misfortune across the wider society, to compensate losses, and so to maintain a safe, sound, and stable society. By its very nature, therefore, the insurance industry serves the public interest. Under the guidance of the supervisory authorities, TII will continue to promote the sound development of the insurance industry and the interests of the insurers, the insured, and the public.

Chairman

Hsien-Nung Kuei