Taiwan FSC Tightens Rules on Insurance Premium Misappropriation, Mandating Reports for Every Case and Fines of Up to NT$12 Million

When insurance agents misappropriate premiums collected on customers’ behalf, policyholders risk having their policies lapse or claims denied. Such cases also expose weaknesses in insurers’ agent oversight and internal controls. The Financial Supervisory Commission therefore treats these incidents as major regulatory failings and requires insurers to establish comprehensive safeguards covering sales, premium collection and audits to protect policyholders.

On February 23, 2026, the Financial Supervisory Commission amended the rules governing insurers’ reporting of major contingencies, removing the threshold that an incident must “materially affect consumer rights.” Insurers must now immediately report every case of premium misappropriation by an agent to the Insurance Bureau by telephone and submit a written report detailing the investigation, response and corrective measures within seven business days from the day after the incident. Failures to implement internal controls or audits may draw fines of up to NT$12 million.