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Regulator bans Chunghwa Post from selling insurance products via 46 branches

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Regulator bans Chunghwa Post from selling insurance products via 46 branches

Taiwan's financial regulator banned Chunghwa Post Co. Ltd. from selling insurance products through 46 branches in Keelung, Taiwan, for six months following an incident involving misappropriation of insurance premiums by an employee.

The Financial Supervisory Commission, or FSC, said March 13 that the company failed to follow up on a complaint in 2013 from a customer that an employee failed to provide proper credentials when concluding an insurance contract.

Chunghwa Post also failed to conduct an investigation following a discovery in 2015 that the addresses of the insured persons for more than 600 policies had the same address and that the account details for some policies were identical to relatives of that employee.

The FSC noted that the incidents reflected the company's failure to implement adequate internal controls.

The employee misappropriated a total of NT$700 million in premiums that had been paid by more than 300 customers on 887 policies, the Taipei Times reported. The ban is expected to take effect in the week of March 19.

As of March 13, US$1 was equivalent to NT$29.26.