A Message from the Chairman

Taiwan Insurance Institute (TII) was established in 1985. The past 34 years of accomplishments and on-going efforts have laid a solid foundation on which TII can facilitate the sound development of the Taiwan insurance industry and thus substantially promote the interests of insurers, the insured, and the general public. Our principal tasks for the coming years are as follows:

Chairman Hsien-Nung Kuei
Chairman
Hsien-Nung Kuei
1.   Construct the Insurance Digital Infrastructure to foster a favorable environment to support InsurTech applications and development
  The setting up of Taiwan Insurance Information Center (TIIC) has been added to the amended draft of the Insurance Act. TII will set up in the TIIC big data repositories with raw data for insurance data analysis, application, and sharing, under strict security and efficiency conditions. The insurance digital infrastructure of TIIC will be a platform not only to increase the efficiency of statistical reporting and improve accessibility, but also to collect, process, and use information relating to underwriting, claims, change of contractual terms and conditions, products, and financial & business statistical data. Data repository users will be given differentiated access privileges according to their status. TIIC will provide at least five major services: basic insurance protection detection, insurance product aggregation, finance & business operational analysis, underwriting risk information, and insurance fraud prevention.TIIC will enable sharing of information in a timely manner through the convenience of cloud computing, as well as offering diversified information management and analysis. The aim behind setting up TIIC is to promote public interest by upgrading the service quality and efficiency of underwriting and claims, making it easier to use insurance actuarial and statistical data, and fostering a favorable environment for RegTech, etc. TIIC is designed to help the Taiwan insurance industry effectively apply InsurTech to offer digital, mobile, and customized services.Once TIIC has been set up, TII will start to convert insurance policies from paper to electronic. At present, the platform and auxiliary system for the authentication of the electronic Compulsory Automobile Liability Insurance (CALI) card is due to be enhanced, and for the convenience and benefit of the public, the platform will be extended to authenticate other electronic automobile insurance policies.

2. Facilitate the creation of a New Generation Insurance Supervisory Framework in line with international standards
TII will devote ongoing efforts to the field testing, implementation, and subsequent monitoring of the Insurance Capital Standard (ICS) developed by the International Association of Insurance Supervisors (IAIS). These ongoing efforts are also intended to lead to the convergence of current Risk Based Capital (RBC) and the ICS. TII is obliged to support the Financial Supervisory Commission (FSC) in drafting new insurance solvency requirements in line with international standards. In addition, TII will provide local insurers with the necessary assistance to adopt International Financial Reporting Standard (IFRS) 17 within the timeframe announced by the FSC. TII will mobilize all useful resources in the accounting, actuarial, and insurance industries to enable smooth adoption of the international accounting standard for insurance contracts.Since capital requirement is not the sole basis for assessing an insurer’s financial condition, factors such as the insurer’s Own Risk and Solvency Assessment (ORSA) and Enterprise Risk Management (ERM) should also be taken into account. TII will, therefore, continue to maintain the information exchange channel on ORSA and ERM so as to promote a risk management culture.Finally, with regard to new insurance products, TII will examine international practice and report to the FSC as part of the review of existing approval regulations aimed at generating an innovation-friendly environment. This is intended to accelerate the approval process and encourage the design of innovative products. Demographics indicate that Taiwan is becoming an aging society, and product innovation may enable insurance services to effectively reduce the protection gap.

3. Survey outstanding problems for the Taiwan insurance industry in global insurance markets in order to develop counter measures
Currently, the global insurance industry is encountering challenges including difficulty maintaining financial stability, climate change, aging populations, cyber-security, and disruptive innovation. TII will gather information on how these issues are being dealt with in global markets and provide this information to Taiwan insurers as a source of reference to enable them to develop possible solutions.Concrete measures that have been proposed include expanding alternative investment and risk-hedging channels for insurance funds, encouraging the life insurance industry to invest in long-term care institutions and public construction, developing standards for lowering the Bond-Like Stocks RBC risk factor ratio, installing an RBC counter-cyclical mechanism, facilitating insurance e-commerce, and promoting various protection gap reduction products, such as compulsory liability insurance for damage from environmental pollution, civil engineering completed risks insurance, cyber-security insurance, long-term care insurance, annuity insurance, health insurance, etc.

4. Enhance cooperation and interaction with insurance organizations in Asia-Pacific nations
Overseas expansion helps insurers diversify risk, create more business opportunities, and above all cope with a close to saturated local market. TII will encourage insurers to pay more attention to the future development of Asia-Pacific markets, and enhance on-going cooperation with insurance institutions in the region. To expand in the Asia-Pacific region will not only provide overseas Taiwanese enterprises with better services, but will also enable the Taiwan insurance industry to expand into Mainland China.

5. Promote public awareness of insurance, and cultivate insurance professionals and international talent
TII will continue to promote public awareness of insurance in accordance with FSC guidance and the Financial Education Curriculum developed by the Taiwan Financial Services Roundtable. TII will also keep pace with international trends by hosting seminars on topics including FinTech/InsurTech, AML/CFT, legal compliance, corporate governance, IFRS 17, and ICS. Meanwhile, in line with the FSC policy of training and cultivating international talent, TII will continue to provide insurance practitioners with training programs on international/cross-strait insurance.

6. Update the Internal Control and Management System
TII plays multiple roles: leading think-tank, insurance actuarial/statistical service provider, and insurance training center. It is vital for TII to continue to increase its administrative efficiency as the foundation expands further into additional roles. Moreover, it is crucial for TII to update its internal control and management system, standard operating procedures, management information system, and paperwork processes if it is to serve as the bridge between the public sector, private enterprises, and the general public.

By its nature, the insurance industry should serve the public interest. The function of insurance is to enable societies to spread the losses of those afflicted by misfortune across the wider society, and to compensate their losses. In the future, TII will continue to devote itself to promoting the core value of insurance—to maintain a safe, sound, and stable society. Thus, TII needs the support of the insurance industry to promote the serving of public interests as well as the sound development of the insurance industry under FSC guidance.
Chairman
Hsien-Nung Kuei
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