The Guidelines for Handling Electronic Commerce by Insurance Companies were amended to enhance the convenience for obtaining insurance online by the consumers (Taiwan)

Sean Tsou

The Financial Supervisory Commission promulgated the Points 6-8, 11, 14 and 15 and Schedule 1 and 2 of Point 4 of the Guidelines for Handling Electronic Commerce by Insurance Companies (hereinafter, the “Guidelines”) via the Jin-Guan-Bao-Zhong-10704567901 Directive of January 11, 2019, and the Guidelines came into effect on the day of their promulgation.  These amendments are highlighted below:

For starter, Point 7, Paragraph 1 of the Guidelines as amended contains additional types of insurance products such as microinsurance, long-term care insurance, insurance with in-kind benefit, general mountaineering insurance and driver injury insurance as part of third-party liability insurance for self-use cars.  In addition, Schedule 1 to Point 7 of the Guidelines as amended raises the upper limit on the insured amount of the travel accident insurance for new customers to NT$12 million.

In addition, Point 14, Paragraph 1 of the Guidelines contains the additional requirement that telephone interview operation at the time of insurance renewal is exempt for existing customers who have obtained property insurance products.    In addition, the amendments also contain an additional method for verifying the identity of a consumer.  For example, if registration and identity verification operation are conducted based on an online bank account (limited to those opened in person at a bank) with a banking subsidiary of the same financial holding company, the insured amount may be dealt with as if it is “subject to first registration and identity verification through a personal visit to the insurance company.”

Finally, Schedule 1 to Point 4 of the Guidelines as amended exempts registration or identity verification operation with respect to insurance service items and the streamlining of accident notification procedure for general travel insurance.