Chapter 5 Insurance Enterprises |
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24. Insurance enterprises that apply to set up business trial operations in the Zone must meet the following criteria:
(1) Approved by the FSC to conduct wealth management business or offshore insurance unit business and have commenced operations.
(2) Signed a letter of intent on cooperation with the local government of the Zone and obtained a certificate issued by the local government to set up operations in the Zone. |
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25. The recipients of insurance enterprises' services in the Zone are limited to high-asset customers and OIU customers. The term "high-asset customers" referred to herein is defined as those that meet the qualifications for high-asset customers in the "Directions for Life Insurance Companies Engaging in Wealth Management Business". |
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26. Insurance enterprises may apply for the following business trial items under Wealth Management Business and offshore insurance business:
(1) Wealth Management Business:
i. Multi-payment health insurance policies payable in foreign currencies.
ii. Insurance products that are not eligible for the minimum ratio of death benefit to policy value reserve (policy account value) for life insurance products.
(2) Offshore Insurance Business: OIUs, OBUs, and OSUs may carry out joint marketing, collaborative promotion, or joint account opening operations in accordance with Point 6, Subparagraph 5. |
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27. Insurance enterprises that apply to set up business trial items and exemptions in the preceding point shall submit the following documents, and the provisions in Point 4 of the "Operation Directions of Financial Institutions Applying for Business Trial" do not apply:
(1) The minutes containing board resolutions.
(2) The copy of a letter of intent on cooperation signed with the local government of the Zone and a certificate from the local government for setting up operations in the Zone.
(3) A business plan, which shall include the following information for each of the Zone business trial items:
i. The allocation of personnel, organizational structure and division of duties between the head office and the Zone operating unit.
ii. The services offered by the Zone operating unit (including other services that are not part of the Zone business trial items), and the itemized description of the scope of goods and services, recipients of services, transaction process, and evaluation of the expected benefits of the business items in the application for the Zone business trial items.
iii. The management mechanisms and operation guidelines of the Zone operating unit (including the control of the Zone operating unit over the business trial items, customer eligibility criteria, cooperation and management mechanisms with other branches of the insurance enterprise, and the management mechanisms and internal control system of the head office for the Zone operating unit).
iv. Protection of customers' rights and interests and dispute handling mechanisms.
v. Mechanisms for handling Zone business trial items after the expiration of the trial period.
vi. Mechanisms and enhancement measures for anti-money laundering and countering the financing of terrorism.
(4) Legal compliance statement.
(5) The required detailed information for each of the Zone business trial items is specified in Appendix 1. |
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28. Insurance companies applying for Zone business trial items shall comply with Article 4 of the "Regulations Governing Implementation of Internal Control and Audit System for Anti-Money Laundering and Countering Terrorism Financing of Insurance Companies, Post Offices Engaging in Simple Life Insurance Business and Other Financial Institutions Designated by the Financial Supervisory Commission". When launching new products with policy value reserve or cash value or monetary services, or engaging in new business practices, they shall assess the money laundering or terrorism financing risks that may arise in relation thereto, and establish relevant risk management measures to mitigate those identified risks. They must also reference the related regulations established by the Life Insurance Association of the Republic of China, and establish anti-money laundering and counter terrorism financing mechanisms. |