The Financial Supervisory Commission (FSC) will soon announce some draft amendments to the "Insurance Broker Management Rules" and "Insurance Agency Management Rules", according to a statement from the Insurance Bureau of the commission.
The amendments are proposed in response to the establishment of online-only banking services, and when passed, would aim to tighten the supervision of insurance brokers and agencies and banks that also operate insurance agency services so as strengthen protection of the rights and interests of the insured.
The key points of the proposed amendments include:
- Coordinate with the establishment of online-only banking services and consider the need for online-only banks applying for insurance agency licences.
- Stipulate the qualifications required of the persons in charge of the insurance broking firm or agency
- Stipulate that when the chairman and general manager of the insurance broking company or agency change, the change shall be reported to the relevant association and to the competent authority
- Insurance broking firms, agencies and banks that also operate insurance agency services should strengthen their financial health, and amend the minimum paid-in capital requirements
- If the insurance contract is issued by the insurer in the form of an electronic policy, the mobile phone number, e-mail address or other contact details of the insured should be obtained and provided to the insurer
- Where customers terminate an existing insurance policy to buy a new insurance plan, the source of funds for the payment of insurance premiums is to be clearly defined and any losses arising from the change in insurance policies are to be explained to the customer.
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