The golden tube will open up! 13 life insurance companies have been fined by the Financial Supervisory Commission for raising interest rates on interest rate insurance policies. Zhang Yuhui, deputy director of the Insurance Bureau, said on the 18th that 13 life insurance companies were ordered to suspend the sale of a total of 20 products for violating the “declared interest rate stabilization mechanism” and “disregarding long-term stable operations and improperly increasing the declared interest rate”. Signatories are given points. Zhang Yuhui emphasized that the rights and interests of the old policyholders who have insured these 20 commodities will not be affected, but they cannot sell or sign new policies.
20 Zhang Yuanda Life, Zhongshou, Taiwan, Nanshan, Cathay Pacific, Fubon, more than 1, the highest has 3 including Yuanta and Fubon Life, the others are 2, Global Life has 1 First off the shelves, including one before Taishin Life Insurance, in addition to Yuanta, AIA, Zhongshou, Taishin, Taiwan, Global, Hongtai, Nanshan, First Gold, Cathay Pacific, Fubon, Farglory, Taiyin Life Insurance, etc. 12 personnel were given points.
The US dollar has risen strongly and the Federal Reserve has frequently raised interest rates. The Financial Supervisory Commission stated that it has recently found out that the life insurance industry’s interest rate-variable insurance product business has taken horizontal competition and market-expected interest rate trends as a consideration for the declared interest rate, and the parameters of the declared interest rate formula have not been specified. 13 companies were punished by suspending the sale of goods and giving points to the signatories of the goods, and required the companies concerned to make improvements to ensure stable business operations and safeguard the rights and interests of policyholders.
Interest rate-variable insurance products have the feature of additionally providing a declared interest rate to accumulate part of the policy value. If the investment performance of the segmented assets corresponding to the policy is good, policyholders have the opportunity to enjoy additional policy value-increasing rewards.
Zhang Yuhui said that if the life insurance industry fails to declare the declared interest rate steadily, or the company’s investment performance cannot meet the set declared interest rate, it may lead to a negative value of its commodity profits, unless it is not conducive to the integration of IFRS17 and the International Insurance Capital Standard (ICS) and other systems In addition, it may cause losses to the company, thereby affecting its financial health and increasing the company’s operational risks. Therefore, the Financial Supervisory Commission will take immediate corrective measures to avoid improperly raising the declared interest rate for the purpose of market competition, regardless of long-term stable operation, which will affect the company’s financial integrity and the rights and interests of policyholders.
In addition, the FSC officials also emphasized that the purpose of this penalty once morest the company’s violations is not to prevent the industry from raising the declared interest rate, but to remind the industry through the penalty to remember the experience and lessons, and know that their own violations are harmful to the company. Financial and consumer rights impact, and indeed improve, establish a sound declared interest rate policy. In addition, the FSC also reminds consumers to pay attention to the following matters when choosing insurance products with variable interest rates:
(1) The nature of interest rate-variable insurance products is still insurance products. Insurance companies will charge insurance costs and surcharges for providing insurance protection, and the declared interest rate is not guaranteed.
(2) Although there are differences in the declared interest rates of various insurance companies, consumers should not only consider the declared interest rate as the sole consideration when purchasing, but should first obtain a sample of the policy terms from the insurance company, and check in detail whether the scope of product protection meets their own needs.
(3) Although interest rate-variable insurance products have an interest rate announcement mechanism, because they are long-term contracts, if the policyholder wants to terminate the contract in advance, the insurance company will still charge a cancellation fee, and the policyholder may not be able to get back the payment due to early termination The full amount of the insurance premium.
(4) For interest rate-variable insurance products that are received and paid in foreign currencies, the currencies for payment of premiums and insurance benefits are all foreign currencies. Special attention should be paid to exchange rate risks before purchasing.
The FSC appeals that insurance is a people-oriented industry, and each policy represents an insurance company’s long-term commitment to policyholders, as well as its mission and responsibility to policyholders. Therefore, in the operation of insurance companies, in order to pursue short-term performance, the declared interest rate should not be improperly raised or the declared interest rate should be adjusted in the same segment. The goal and value of long-term and sustainable operation are to respond to the trust and expectation of policyholders in the insurance company.
(Review: Lu Junyi)
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Yahoo Finance correspondent Ye Yiru: 22 years of experience in mainstream financial media, from the bubble of Web 1.0 in 2000 to Web 3.0 of Meta, witnessing the rise and fall of large and small enterprise groups in Taiwan, and going through 5 international financial crises. We think that finance is life and is omnipresent. No matter how difficult the financial knowledge is, we should say it plainly. Whether you are old or young, you should manage your finances.
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