Friday, April 20, 2018

Taiwan incentivises protection products

Starting next year, insurers in Taiwan can take advantage of incentives offered by the government to create products with protection elements.

The incentives, to be offered by the Financial Supervisory Commission (FSC), are aimed at improving the product mix within the nation’s insurance sector.

The FSC will grant eased capital requirements for qualified insurers.

Companies eligible for the incentives are those with new products with protection elements.

Insurers could add up to one basis point to their expected returns, which would eventually reduce the amount of capital that must be held in reserve to ensure that firms are able to meet their obligations to policyholders.

The commission said that with the reduced capital requirements, insurers would be able to price their products lower, improving accessibility to consumers.

FSC chief secretary Shih Chiung-hwa said the program ultimately wants insurers to focus on protection products, rather than on savings products.

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