Foreign investments

Amendments to the Foreign Investment Regulations of Insurance Companies


The Regulations Governing Foreign Investment of Insurance Companies (the “Regulations”) were implemented on March 6, 1993 and have been amended 25 times. The last change was made on December 31, 2019. This current change (the “Amendment”) was made in response to the demand from policyholders for insurance policies denominated in foreign currencies and to improve the efficiency of the policy. ‘asset-liability allocation of life insurance companies engaging in life insurance activities not linked to investments denominated in foreign currencies. The amendment includes amendments to two articles, and the key points are as follows:

1.To improve the efficiency of the asset-liability allocation of life insurance companies carrying out life insurance activities denominated in foreign currencies not linked to investments, taking into account the demand of policyholders for insurance denominated in foreign currency. foreign currency and foreign exchange risk tolerance, the development balance between insurance products denominated in NTD and denominated in foreign currencies, and to avoid double counting of the amount of foreign investment excluded due to investments in Sukuk issued by foreign issuers on the professional advice of the international bond market, an amendment has been made to allow the sale of foreign currency investment-free life insurance products currently made by life insurance companies must be excluded from the formula for calculating the amount of foreign investment after approval is obtained. (Modification of article 15-2)

2.To take into account the percentage increase from 35% to 40% in the formula provided for in article 15-2, a modification was made simultaneously to the limitation of investments provided for in subparagraph 2 of paragraph 8 of the ‘Article 15. (Amendment of Article 15)

3.To maintain uniformity of the content of the foreign investment quota application form of insurance enterprises and the wording of the regulations, changes have also been made to the content of the foreign investment quota application form of enterprises. insurance. (Modification of Annex 2 of Article 15)