Taiwan’s Financial Supervisory Commission (FSC) is tightening oversight of how insurance companies outsource their operations, proposing a new set of binding regulations that would replace existing administrative guidelines.
The draft “Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Insurance Enterprise Operation” comes after amendments to the Insurance Act were signed into law on June 18, 2025. The revisions give the FSC clear authority to create outsourcing rules and to penalize companies that fail to comply.
Under the proposed rules, insurance firms would face tighter requirements when hiring outside service providers. The draft removes the rule that allowed brokers to collect premiums for insurers, noting that brokers work for policyholders, not the companies. It also allows insurers to outsource tax-related land registration tasks to meet practical needs and requires all outsourcing contracts to have a fixed term.
The new regulations would replace the existing “Directions for Outsourcing Operation by Insurance Enterprise,” turning them from internal guidelines into binding legal rules. The FSC said the goal is to improve the quality of outsourced work, protect consumers, and lower risks for insurance companies.
The draft will be published in the Executive Yuan’s official gazette and on the FSC website. The public can send feedback through the “Notice of Draft Regulations” section on the FSC’s “Laws and Regulations Retrieving System” within 60 days of the announcement.
