Insurance intermediaries under Taiwanese laws include insurance brokers and insurance agents. Individual insurance brokers and insurance agents shall obtain licenses by passing their respective exams. Insurance broker companies and insurance agent companies, as well as banks that would like to conduct insurance broker or agent business, shall obtain licenses issued by the Insurance Bureau of the Financial Supervisory Commission (the IB).
No. Insurers are not required to offer customers the option to purchase insurance products directly from the insurer.
Most local insurers use the insurance agency agreement template promulgated by the Insurance Agency Association of Taiwan (ROC) and recognized by the IB.
Yes. Commission can be based on the volume of the insurance policy sold by the brokers or agents provided that calculation of commission shall be reasonable and the amount of commission is subject to the restrictions set forth in the self-disciplined rules
promulgated by the Life Insurance Association and the Non-Life Insurance Association.
Yes. As principal, an insurer shall be jointly liable for any misconduct of its agent. In addition, if the insurer compensates the customer for any loss resulting from any misconduct of the agent, the insurer can claim against the agent for reimbursement.
No. There is no regulation governing the number of insurers that insurance brokers need to present to their customers. Insurance brokers can present one or more insurers to their customers.
We are not aware of any laws that prohibit insurance brokers from receiving fees from both insurers and customers. However, conflict of interest should be addressed in this structure and the insured should be informed of the standard commission amount to be paid.
The offering of rebates on insurance premiums or other special concessions to customers is prohibited under Taiwanese law.
No laws prohibit insurers from appointing offshore agents or brokers. However, insurers should consider whether such arrangements comply with the applicable laws in foreign jurisdictions. Please note that Taiwanese agents and brokers shall not solicit insurance business from offshore insurers that are not licensed in Taiwan.
Offering insurance policy via telephone is subject to the Guideline for Handling the Telemarketing Business for Insurance Sectors (Guideline). According to the Guideline, only traditional life insurance, health insurance, pension insurance and injury insurance can be offered through solicitation by telemarketing. With respect to non-life insurance, only insurance policies whose yearly insurance premiums do not exceed NTD 50,000 (approximately USD 1,666) can be offered through telemarketing as specified in the Guideline. Insurance companies are required to obtain the consent of customers prior to recording a conversation. The recorded conversation needs to include the identity of the insurance policy holder, the intention and confirmation to enter into the insurance contract, the scope of the insurance, the items for insurance payment, the term of the insurance, the insured amount, and the insurance premium.
The offering of insurance policy online is subject to the Guideline for Handling the Electronic Commerce for Insurance Sectors. Only the types of insurance specified in the Guideline can be offered online. Insurance companies need to provide on their websites explanations on the insurance products offered online, as well as terms and conditions for customers to review. Insurance companies are also required to obtain customers' confirmation that they have reviewed and agreed to the insurance terms and conditions disclosed on the web page.
With respect to supplemental verification, customers who signed up online for the first time, have gone through identity verification online and have bought insurance products online can only use their credit card or bank accounts to pay for insurance premiums.
The law governing personal data protection and privacy in Taiwan is the Personal Data Protection Law (the PDPL). Insurers, agents and brokers must notify clients of the specific purpose for which their personal data is collected and obtain consent from the clients for the use of their personal data within the specific purpose.
The cross-border transfer of personal data is generally permitted, but the Taiwanese government can prohibit cross-border transfers under one of the following circumstances: (1) where substantial national interests are involved; (2) where international treaties or agreements specify otherwise; (3) where the rights and interests of the data subject are likely to be affected adversely because the country where the data recipient is located does not have appropriate laws and regulations to protect personal data; or (4) where the PDPL may be avoided because the personal data is transmitted or used by way of indirect transmission to a third country or area.