In order to more closely align the credit rating scales of different international credit rating agencies and ensure the sound operation of reinsurance enterprises, the Financial Supervisory Commission amended Articles 8 and 12 of the Regulations Governing Insurance Enterprises Engaging in Operating Reinsurance and Other Risk Spreading Mechanisms, per the letter Ref. No. Jin-Guan-Bao-Chan-Zi No. 10602520171 dated 2 May 2017. The main points are as follows:

  1. Article 8 amended: Based on the relevant research data from the securities valuation office of the National Association of Insurance Commissioners and A.M. Best Company, the minimum Financial Strength Rating assigned by A.M. Best Company to the eligible reinsurer to whom an insurance enterprise may cede its business shall be raised from B+ to B++.
  2. Article 12 amended: Based on the relevant research data from the securities valuation office of the National Association of Insurance Commissioners, A.M. Best Company and Taiwan Ratings Corporation, the minimum Financial Strength Rating assigned by A.M. Best Company to reinsurance enterprises or organizations, which jointly assume the major commercial fire insurance business or cargo insurance business ceded by a non-life insurance enterprise through a type of non-proportional facultative reinsurance, of which each portion of risk is ceded to Taiwan non-life insurance enterprises, shall be raised from B++ to A and the minimum credit rating assigned by Taiwan Ratings Corporation shall be raised from twAA to twAA+.