The Financial Supervisory Commission (FSC) amended the Directions Governing E-Commerce Conducted by Insurance Enterprises (“Directions”) by issuing an order (Ref. No.: Jin-Guan-Bao-Zong-Zi-10602564481) dated November 20, 2017 to continue promoting online insurance policy purchase. The main stipulations of the amendment are as follows:
1.Point 3: New consumers may buy insurance policies online on the mobile application platform created by insurers.
2.Point 6: Insurance products to be purchased online are set out in a negative list without any of the following items on it:
(1)The proposer or the insured is not a natural person.
(2)Except for term life insurance, general insurance, additional insurance or rider with injury insurance or health insurance.
(3)The proposer or the insured is not the same person. However, the proposer is permitted to buy a travel inconvenience insurance for their children under 7 years old (inclusive).
(4)The annual premium to be paid per insurance policy (including the master contract and the rider) exceeding NT$100 thousand.
3. Point 7:
(1)Small-amount whole life insurance is added to the types of life insurances available for online insurance purchase and the proposer is permitted to buy a travel insurance for their children under 7 years old.
(2)The maximum insured amount of single travel insurance policy and total travel insurance policies bought through online channels for one person is raised to NT$10 to 15 million depending on the person’s conditions and differences in the use of insurance purchase channels. Death benefits for an insured under 7 years old shall be given in accordance with Article 107 of the Insurance Act.
4.Point 14: Insurers may be exempt from telephone interview with proposers who apply for travel insurance or travel inconvenience insurance. In case of hearing- or speech-impaired proposers, telephone interview therewith may be substituted by text message or email or in such a way that they may recognize the message given.
5.Point 15: If an insurer meets one of the passive qualifications set out in these Directions, the maximum insured amount of single online insurance policy and total insurance policies sold through online channels will be reduced by 25%. Such insurer shall raise the sampling percentage of the telephone interview needed to confirm the purchase made by new policyholders and old policyholders to 15% and 7.5% of the new policyholders and old policyholders respectively.