CTBC Insurance Co. has filed an application to establish an online-only insurance company, which will be the first of its kind in Taiwan if approved.
Shih Chiung-hwa, Insurance Bureau director-general, earlier told the media that Fubon Financial Holding and CTBC Financial Holding have both expressed interest in establishing a virtual insurer, while other insurance companies have also made inquiries about the requirements, Taipei Times reported.
However, Fubon Financial’s president, Jerry Harn, told investors in August that the company is doubting whether to establish a virtual insurer, as it might not mesh well with the group’s other businesses.
Financial Supervisory Commission guidelines state that virtual or online-only insurers must be at least 40% owned by a financial institution. Out of the 40%, at least 25% should be owned by a life insurance company or a financial holding company with an insurance unit, to ensure that the venture is compliant with Taiwan’s insurance regulations. The current minimum capital requirements are NT$1 billion (SG$44.37 million) for life insurers and NT$2 billion for non-life insurers.
CTBC Insurance is the insurance arm of Chinatrust Commercial Bank, one of the largest privately owned banks in Taiwan.
If CTBC’s application hurdles the review period, which is expected to last around five months, Taiwan’s first virtual insurer could be online and running in the second quarter of 2023, the report said.
