Life insurance policies in RMB no longer banned
By Kathryn Chiu , The China Post
April 2, 2014, 12:01 am TWN
TAIPEI, Taiwan -- Local financial regulators on Tuesday approbated the first batch of renminbi (RMB)-denominated life insurance policies, setting a new milestone for Taiwan to diversify its inshore RMB financial products.
The Central News Agency (CNA) reported yesterday that Taiwan's top financial watchdog, the Financial Supervisory Commission (FSC), had approved the first six RMB-denominated insurance policies worth NT$24.6 billion in insurance coverage quotas.
Those six policies were filed by TransGlobe Life (全球人壽), Shin Kong Life Insurance (新光人壽), China Life (中國人壽), Fubon Life (富邦人壽), CTBC Life (中國信託人壽) and Cathay Life (國泰人壽), according to the FSC.
TransGlobe Life will lead over peers in launching the first RMB-denominated insurance plan in mid-April. According to the FSC, the first-year quota for TransGlobe Life's RMB-denominated insurance coverage amounts to NT$120 million.
TransGlobe Life told local media that its first RMB-denominated insurance product will be a NT$200,000-worth old-age insurance policy.
In a bid to build Taiwan as a RMB offshore center, local governments are speeding up the relaxation of financial regulations. Simultaneously, as Taiwan further eases financial restrictions, Chinese currency deposits in Taiwan are likely to surge to 250 billion by year-end.