A Message from the Chairman

Hsien-Nung Kuei
Hsien-Nung Kuei

The Taiwan Insurance Institute (TII) accomplished a lot in 2020, including setting up the authentication & validation platform and the digital archive for electronic insurance policies under the guidance of the supervisory authorities. All non-life insurance companies accepted TII’s invitation to join the platform and started to enjoy the authentication, validation, and storage of electronic insurance policies. In addition, in line with supervisory authority requirements, TII successfully implemented the mandatory 6-hour legal compliance online training courses for insurance sales agents. In the first year of the digital training courses, the number of participants who completed the courses via TII’s online training website substantially exceeded the target.

In 2020, TII hosted two major international events in succession: the Conference on ERM in the Insurance Industry and the Asia Insurance Outlook Forum. Even though overseas lecturers could not speak in person owing to the Covid-19 travel ban, TII managed to arrange their real-time participation by video conferencing. At the 2021 Insurance and Economic Development Forum, TII invited Jonathan Dixon, secretary-general of IAIS, and Dean Cameron, vice president of NAIC, to use pre-recorded videos to articulate their forward-looking views on insurance industry development.

With guidance and assistance from the supervisory authorities, TII took part in the 2020 Student Group Insurance Actuarial and R&D Consulting Service procurement bid offered by the K-12 Education Administration, Ministry of Education. After winning the bid, TII provided the services specified in the procurement contract and helped implement the government policy of protecting student health from grades 1 through 12 grade as well as alleviating economic burdens for students' families.

In the process of adopting IFRS 17 in 2020, TII continued to follow up on the most up-to-date information on IFRS 17 and post these updates on the TII website for the general public. We also completed the evaluation of the progress report submitted to the board of directors of each insurance company every quarter, reviewed progress on building up related systems, data inventory, and insurance industry understanding of the Actuarial Standard of Procedures, and submitted the summary evaluation comments to the supervisory authorities.

In 2020, the supervisory authorities announced that the new generation insurance solvency requirements would be developed in reference to the Insurance Capital Standard 2.0 (ICS) issued by the IAIS. To implement this policy, TII started a Quantitative Impact Study (QIS) and carried out technical training and education on ICS documentation. We also used the QIS results to design additional test scenarios and let insurance companies download technical guidance on major issues, interest rate scenarios, and QIS tabular forms. TII hosted QIS Q&A meetings to answer questions on the tabular test forms and ICS, and published a FAQ on the TII website.

TII was set up to facilitate the sound development of the insurance industry and promote the interests of insurers, the insured, and the general public. Founded in 1985, TII enters its 36th year in 2021. The past 36 years of hard work and accomplishments have laid a solid foundation on which TII will continue to fulfil its mission. Our principal tasks for the coming years are as follows:

  1. Broadening the application of the Authentication & Validation Platform and the Digital Archive for the Electronic Insurance Policy to more types of insurance.

    TII will continue to improve the services provided on the platform and help insurance companies to issue electronic insurance policies in line with legal requirements and also save on technical costs. TII aims to foster a safe, convenient, highly efficient, low-cost, paperless environment for the insurance industry, who will in turn promote efficiency and service quality. In addition, in an attempt to enhance consumer protection, TII will continue to play the role of impartial third party to help identify genuine electronic insurance policies. In cases of dispute, the related parties will be able to download the electronic insurance policy trading records and use them as evidence to help resolve the dispute.

    TII has successfully brought non-life insurance companies onto the Authentication & Validation Platform and the Digital Archive for the Electronic Insurance Policy. However, there is room to broaden the application of electronic insurance policies to include more types of insurance contracts, e.g. Residential Fire and Earthquake Insurance. TII will review the difficulties and obstacles encountered when issuing electronic policies and will gradually enlarge the application of the Authentication & Validation Platform and the Digital Archive to include more kinds of insurance contracts. We also will refine authentication and validation services for electronic compulsory automobile liability insurance cards and implement the paperless insurance contract policy.

  2. Upgrading online training courses for insurance sales agents, boosting Fintech/green/ESG Capacity Building, and cultivating insurance professionals and international talent
    TII will continue to upgrade online training courses for sales agents, which are aimed at improving their understanding of legal compliance and forging a suitable compliance culture in insurance companies. Further goals are to entrench the principle of fair treatment of customers, boost customer confidence, and facilitate the sustainable development of the insurance industry.

    TII will follow the supervisory authorities’ Fintech Development Roadmap and Green Finance Action Plan 2.0 as we continue to implement our Cultivation Plan for Fintech/Insurtech/Green Finance Talents and strengthen the capacity building of the insurance industry in these field. To this end, TII will use private-public partnerships to train staff to produce talented insurance industry professionals.

    TII will continue raising public awareness of financial inclusion and general knowledge of insurance. We will also continue to provide insurance practitioners with international insurance training programs to cultivate and train international talent. TII will keep pace with international developments by hosting seminars on topics including Fintech/Insurtech, green finance, ESG, AML/CFT, corporate governance, internal control, IFRS 17, and ICS 2.0.

    TII will continue raising public awareness of financial inclusion and general knowledge of insurance. We will also continue to provide insurance practitioners with international insurance training programs to cultivate and train international talent. TII will keep pace with international developments by hosting seminars on topics including Fintech/Insurtech, green finance, ESG, AML/CFT, corporate governance, internal control, IFRS 17, and ICS 2.0.

  3. Completing the introduction of IFRS 17 and ICS 2.0

    TII will be in line with the supervisory authorities’ schedule for introduction of IFRS 17 as we help insurance companies to complete and implement their adjustment schedule for planning company strategy (including products, investment, and risk management), operating procedures, and internal control.

    TII will follow the supervisory authorities’ policy as we develop new generation solvency requirements in reference to ICS 2.0 and finalize related research programs. TII will also continue to help insurance companies undertake domestic QIS and evaluate its possible effects. In addition, we will discuss related supervisory requirements for local markets and submit the proposal to the supervisory authorities.

  4. Maintaining cooperation and interaction 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 the development of 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 on-going cooperation with insurance institutions in the region. Expansion in the Asia-Pacific region will both provide overseas Taiwanese enterprises with better services and also 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 outlook of Taiwanese insurers in Mainland China.

  5. Developing insurance-related research

    TII will take into account the supervisory policies and market evolving directions as we carry out insurance-related research. Topics will include enhancing the ID authentication mechanism in insurance e-commerce, facilitating sound legal requirements for terminating liquidation and dissolution of insurance companies under receivership, and using market survey to forecast the 2022 insurance market and predict various kinds of premiums.

    TII will also collect information from Taiwan and overseas regarding new topics of corporate governance, Insurtech, ESG, green insurance, risk management, climate, and societal change, and undertake in-depth studies. TII plans to host seminars for further exploration of these various topics.

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

    TII has completed the internal control system and has started to implement the annual internal audit plan that should help the TII board of directors and executives to review and evaluate the internal control framework and determine its effectiveness, and assess the accuracy of the performance results. TII’s internal audit will ensure the on-going effectiveness of internal controls.

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

Chairman

Hsien-Nung Kuei