To specify the scope of underwriting injury insurance for non-life insurance enterprises, the Financial Supervisory Commission (FSC) amended the "Regulations Governing Non-Life Insurance Enterprises Engaging in Injury Insurance and Health Insurance", per the letter Ref. No. Jin-Guan-Bao-Cai-Chan No. 10402527031 dated 31 December 2015. The main points are as follows:
- The non-life insurance company shall limit risks to short-term risk due to the nature of its operations, fund allocation and reinsurance arrangement. Therefore, the amendments stipulated restrictions on non-life insurance companies in underwriting injury insurance and health insurance with the guaranteed renewability provision.
- Given non-insurance companies' experience in operating business, policy underwriting and claim adjustment of injury insurance and health insurance, the amendments, in reference to the practices of short-term injury insurance and health insurance in Japan and Singapore, stipulated that those meeting the following qualifications may engage in injury insurance and health insurance with an insurance period of less than three (3) years and without guarantee to renew the policy:
- The non-life insurance company has been approved by the competent authority to engage in injury insurance and health insurance and has been operating such business for more than three (3) years;
- The non-life insurance company's ratio of total adjusted net capital to risk-based capital (i.e. RBC) shall exceed two hundred fifty (250) percent in the most recent year.
- The non-life insurance company has not been subject to severe punishment or more than NT$ three (3) million in cumulative fines imposed by the competent authority in the most recent year, or has taken specific remedial actions and such improvement has been approved by the competent authority.
- The non-life insurance company ranks in the top fifty (50) percent in the most recent year based on overall score received by non-life insurance companies in terms of the ratios of non-claim complaints and claim-related complaints filed by policyholders with the competent authority and its designated agency, as well as the speed of complaint handling by the non-life insurance companies; provided the foregoing need not apply to non-life insurance companies having provided a reasonable explanation which has been approved by the competent authority.
- The non-life insurance company, in supporting government policy, has assisted in launching new insurance products, promoting new business or social welfare activities with great track records in the recent three (3) years.