FSC issues warning to insurance company for allegedly misleading ad
By Ted Chen , The China PostTAIPEI, Taiwan -- The Financial Supervisory Commission (FSC, 金管會) yesterday issued a warning to an insurance carrier for releasing potentially misleading advertisements.
January 2, 2014, 12:14 am TWN
Jeannie Hsieh (謝金燕), a popular entertainer whose recent dance single hit took Taiwan by storm was featured in a series of TV ads urging the public to seek employment at the Law Insurance Broker Co. Ltd. (LIB, 錠嵂保險經紀人), and buy insurance policies from the company's agents. In the ads, Hsieh can be seen beseeching the public to serve as her agent, while clad in attractive professional attire.
The TV ads have since captured the interest of Taiwan's Internet communities, and the attention of the FSC.
According to the FSC, the ads may be potentially misleading as insurance brokers and agents are required to pass stringent exams set by regulators, a threshold much more difficult to reach than the license exams for insurance sales persons.
The difference between an insurance sales person and an insurance broker or agent must be clarified, said the FSC. Currently, only 10 to 20 candidates annually attempt the stringent national certification exam for insurance brokers or agents, said the FSC, adding that more than 80 percent of candidates fail the test.
LIB has reportedly attempted to remedy the situation by adding warning and clarification statements to its TV ads. However, regulators stated that they are still deliberating whether or not the company should be fined for airing potentially misleading TV ads.