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Important Measures

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Amendments to the “Regulations Governing Insurance Agents” and the “Regulations Governing Insurance Brokers”

The FSC amended the aforementioned 2 Regulations on November 18, 2019. Key points of the amendments include (1) simplifying the documentation requirement for signature procedures of insurance brokers and insurance agents; (2) introducing the requirements for banks to create a mechanism for ensuring consistency of the sources of customer’s premium payment and their transaction records with the bank and to contact their customers by non-sales personnel by telephone (for verification of aforementioned consistency) to enhance the protection of consumers interests and rights; (3) prohibiting banks from authorizing their personnel in their credit, deposit and remittance departments to sell investment-linked insurance products and insurance products with surrender benefits (not including the injury insurance which has insurance period of less than 3 years and the mortgage life insurance with surrender value) and charge commission for such sale activities; (4) allowing insurance broker companies to apply for operation of reinsurance broker business alone or apply for concurrent operation of both broker business and reinsurance broker business to meet their practical needs; (5) introducing the requirements that insurance broker companies are required to preserve all reinsurance contracts and documents for their delivery to the original insurer within 60 days, and incorporating the current self-regulations for insurance broker companies operating reinsurance brokerage business into the related regulatory framework in order to enhance the management of reinsurance broker business.
Visitor: 269   Update: 2019-12-12