25 November, 2017
The Financial Supervisory Commission (“FSC”) completed the procedure for announcing the proposed Amendment to Articles 24 and 32 of the “Regulations Governing Pre-sale Procedures for Insurance Products”. The plan is for the amended regulation to take effect on January 1, 2018.
The proposed Amendment provides, among other things, that an insurance enterprise shall convene insurance products management meetings semi-annually to review all essential aspects of the insurance products and corresponding measures, including: the execution of assets allocation plan for life insurance products of one year or longer; the pricing reasonableness analysis of insurance products, which shall cover the adequacy of premium (rates), and any significant diviation between the submitted actuarial assumption of major life insurance products and the actual after-sale experience.
If any adjustment should be deemed necessary after such review, the proposed adjustment shall be submitted to the board of directors approved after approval by the president or general manager, as the case may be.
For further information, please contact:
C. Y. Huang, Partner, Tsar & Tsai Law Firm
CYHuang@TsarTsai.com.tw
