Financial Inspection Report Reveals 7 Deficiencies in Life Insurance; FSC: Reasons for Claim Rejections Should Be Explained

AI Summary (NQ-processed)

The Financial Supervisory Commission's (FSC) financial inspection report for the second half of 2025 identified seven deficiencies in the life insurance industry, including anti-money laundering, insurance product sales document management, claims processing, post-sales management, overseas investments, related party transactions, and information security. A key issue highlighted was the failure to clearly state reasons and contractual basis for rejected claims in notification letters. The FSC mandates that insurers must provide written explanations for claim rejections. Other issues included inadequate disclosure of risks for dividend-linked investment policies, insufficient control over overseas investment limits, and poor management of password changes for special privilege accounts. The FSC has instructed the industry to strengthen compliance and management systems.