TAIWAN Law and Practice Contributed by: Daniel T H Tsai, Lee and Li
• The insurance enterprise shall retain complete ownership of data outsourced to cloud service providers for processing. The insurance enterprise must ensure that the cloud service provider does not have the right to access customer data except for the execution of outsourced operations and that the cloud service provider does not use the data for purposes outside the scope of outsourced operations. • The location for processing and storing customer data outsourced to a cloud service provider must be in accordance with related rules. Furthermore, in October 2023, the FSC amended related regulations in “Directions Governing E-Com- merce Conducted by Insurance Enterprises” and “Directions on Insurance Enterprise, Insurance Agent and Insurance Broker Cross-Industry Collaboration for Promotion of Ancillary Insurance Products”. Moreover, on 30 July 2024, the FSC further amended the related regulations in Article 18 (2)(3) of “Directions for Operation Outsourcing by Insurance Enterprises”, and relaxed the original restriction that the insurance companies shall jointly engage an independent third party with information expertise to audit the same
cloud service provider, and allow the insurance com- panies to be able to engage, jointly with other insur- ance industries and financial institutions, the inde- pendent auditor. On 22 July 2024, the FSC amended the “Regulations Governing the Implementation of Internal Control and Audit System and Business Solic- itation System of Insurance Agent Companies and Insurance Broker Companies” to lower the threshold for annual operating income for insurance agent and broker companies. Additionally, the FSC revised the control mechanism for solicitation documents, shift- ing from a signature-based system to one based on inspection and approval. Furthermore, the FSC intro- duced a new provision allowing individuals who hold insurance agent or broker qualifications and have at least two years of relevant experience in agency or brokerage work to be eligible to serve as auditors. The FSC hopes to develop more innovative insur- ance products and provide the consumer with better e-commerce services. In addition, the Taiwan govern- ment is making significant efforts to encourage col- laboration between the insurance industry and the fin- tech sector across various fields, including big data analysis, interface design, software development, and wireless communication.
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