Taiwan FSC Warns of Illegal Offshore Policy Risks, Fraud and Weak Legal Protection

So-called illegal offshore insurance policies are issued by overseas insurers that have not received approval from Taiwan’s Financial Supervisory Commission, or may even be forged. They have not been reviewed by Taiwanese regulators. Such policies are often marketed through Instagram, Facebook and LINE, leaving policyholders with little protection under the Insurance Act or the Taiwan Insurance Guaranty Fund when claims disputes arise.

The FSC said on September 18, 2025, that it had recently received a growing number of public complaints about insurance policies from places including Hong Kong and Singapore being promoted on social media. It identified five major risks: difficulty resolving disputes, information asymmetry, inadequate legal protection, fraud and the absence of tax benefits. Under the Insurance Act, anyone soliciting such policies in Taiwan faces up to three years in prison and may also be fined NT$3 million to NT$20 million.