THE Taiwan Government will soon allow foreign insurers, other than United States companies, to operate in its domestic market, a move considered by most insurance firms as an inevitable step towards gradual liberalisation of the market.
The government will also permit foreign insurers to set up subsidiaries, requiring them to have capital of NT$2billion (HK$600 million) - the same level as domestic insurers.
Although most foreign insurers describe the proposals as encouraging, they do not anticipate any sudden intensification of competition in Taiwan.
Most non-US insurers have already beaten the system by setting up operations in Taiwan through their US affiliates.
The parent company of National Mutual Asia, (NMA), the only listed life insurer in Hong Kong, started writing life insurance in Taiwan through its US subsidiary last year.
The company intends that once the Taiwan market opens to non-US insurers, NMA will take over the operation.
