Taiwan: Three local life insurers fall short of solvency standards
Source: Asia Insurance Review | Oct 2023
The Financial Supervisory Commission (FSC) has voiced concern over the health of three domestic life insurers after they released their financial statements for the first six months.
The commission said it would send warning letters to Shin Kong Life Insurance, Mercuries Life Insurance and Hontai Life Insurance for failing to keep their risk-based capital above the required 200%, reported The Taipei Times.
Insurance rules also require all life insurers to maintain a net worth of more than 3% in at least one of the latest two inspection periods, the FSC said.
Shin Kong Life failed the first test, while Mercuries Life and Hontai Life failed both requirements, Insurance Bureau deputy director Lin Chih-hsien said.
Life insurers unable to meet the requirements must submit improvement plans such as increasing their capital and real-estate disposals, the commission said. A