Taiwan Life Insurance Co. Ltd. will stop selling high-return insurance savings plans as the Financial Supervisory Commission moves to improve reviews of such products and lower the ratio of death benefits, the Taipei Times reported.
The regulator's plans would reportedly discourage the sale of savings plan, with Taiwan Life President Tony Chuang acknowledging that the new regulations will affect marketing strategies. However, he said Taiwan Life agrees that "insurance is not intended for wealth management."
Taiwan Life will initially stop selling savings plans subject to a six-year payment requirement and will then gradually suspend the sale of other high-return plans. The impact of the move on Taiwan Life's premium income is not expected to be a cause for concern, Chuang said.
The commission intends to roll out stricter regulations on local life insurers starting from the second half of 2019. The rules are expected to help enhance life insurers' financial abilities and risk profiles as they are intended to resolve overheating, low equity-to-asset ratios and the implementation of the IFRS 17 accounting standards.