GOVERNMENT REGULATION AND SUPERVISION AS APPLIED TO THE INSURANCE INDUSTRY IN TAIWAN.

摘要

In modern society, insurance demand is relatively stable. Insurance supply met by insurance organizations, insurance contracts and marketing systems, can be highly variable. The insurance industry, in addition to meeting insurance demands, also plays a significant role in promoting economic development of a country. Adequate government regulation and supervision is essential to preserving the interests of the policyholders and the nation.; In Taiwan, the insurance industry has not yet fulfilled its role in providing financial protection and contributing to the economic growth. An adequate framework of insurance regulation and supervision has been lacking.; This study describes and analyzes Taiwan insurance regulation and supervision and makes specific recommendations to help in the development of an effective system of insurance regulations and supervisions.; The research is based upon case study methodology for a comprehensive rather than an intensive treatment of legal, actuarial and financial matters. It is necessarily limited by unavailability of data and records. Principal resources are insurance research reports published by the Insurance Research Committee of Taiwan, insurance laws, administrative rules and statistical reports.; Future prospects of the Taiwan insurance industry are dependent upon enactment of effective governmental regulation and supervision. Because the environmental factors vary from one country to another, no ideal system exists for insurance regulation and supervision. The single most important recommendation is enlargement of administrative control through creation of a Department of Insurance under the Ministry of Finance and creation of two quasi-supervisory organizations: a rating bureau and an insurance education institution. Of equal importance is the proposal that the Insurance Supervisory Authority take initiatives toward improving current regulation and supervision by increasing the financial strength of insurance organizations, by focusing on policyholders' needs through improvement of insurance contracts and rates, by requiring professionalism in insurance intermediaries, by reinforcing reinsurance activities and by developing cooperative insurance.