FSC Warns: Unapproved Offshore Insurance Policies Carry 5 Major Risks
Taiwan's Financial Supervisory Commission (FSC) announced today that it has received two recent reports about people recommending the sale of Hong Kong offshore insurance policies on social media platforms. The FSC emphasized that these offshore policies are unapproved products, posing five major risks: lack of recourse, information opacity, insufficient legal protection, ineligibility for tax benefits, and potential fraud. The public is urged not to purchase them.
📋 Article Processing Timeline
- 📰 Published: June 4, 2026 at 22:03
- 🔍 Collected: June 4, 2026 at 22:18 (15 min after Published)
- 🤖 AI Analyzed: June 6, 2026 at 15:28 (41h 9m after Collected)
(Central News Agency, reporter Su Siyun, Taipei, 4th) The Financial Supervisory Commission (FSC) stated today that it has recently received two reports regarding individuals recommending and selling Hong Kong offshore insurance policies on social media platforms. As these offshore policies are products not approved by the FSC, they pose five major risks: lack of recourse, information opacity, insufficient legal protection, ineligibility for tax benefits, and potential fraud. The public is strongly urged not to purchase them.
Chen Ching-yuan, Deputy Director of the Insurance Bureau under the FSC, stated that the bureau recently received two reports from the public who saw people recommending the purchase of Hong Kong insurance policies on online platforms such as Instagram, Facebook, and Line. These offshore insurance products may be issued by foreign insurance companies not licensed by the FSC, or they could be forged policies from foreign insurers. He urged the public not to buy them.
Chen warned that foreign insurance companies operating without permission in Taiwan issue policies that have naturally not passed regulatory review. Consumers who purchase offshore insurance policies (also known as underground policies) may face five major risks. First, in the event of an insurance claim dispute, consumers must negotiate with the foreign insurance company on their own and may not receive proper resolution, leaving them with no recourse.
Second, offshore policies are often written in English or are Chinese translations, making information potentially opaque and preventing consumers from fully understanding the contract terms. Third, there is insufficient legal protection; the insurance company issuing the offshore policy is not regulated by Taiwan's Insurance Act, and the purchased product is not covered by the Insurance Stabilization Fund.
Fourth, unscrupulous individuals may provide fake offshore policies, and consumers, finding it difficult to distinguish authenticity, may be defrauded of their premiums, resulting in financial loss. Fifth, tax benefits are not applicable. Because offshore policies are not recognized under Taiwanese law, premiums paid by consumers cannot be used as itemized deductions for income tax. Furthermore, even if a beneficiary is designated for the death benefit of an offshore policy, the provision in the Insurance Act that death benefits are not considered part of the insured's estate does not apply.
Chen pointed out that according to the Insurance Act, anyone acting as an agent, broker, or solicitor for an insurance business not governed by the Insurance Act or for a foreign insurance enterprise may be sentenced to up to three years in prison and may be fined between NT$3 million and NT$20 million. In severe cases, the competent authority may suspend part or all of the business of an insurance agent, broker, surveyor, or a bank concurrently operating as an insurance agent or broker, or revoke its license and cancel its practicing certificate.
The FSC emphasized that no one is allowed to act as an agent, broker, or solicitor for offshore insurance policies within Taiwan; doing so would incur criminal liability for illegally selling offshore policies. If the public finds concrete evidence of individuals soliciting offshore insurance policies, they can submit the evidence to judicial authorities or report it to the FSC. (Editor: Yang Lanxuan) 1150604
Chen Ching-yuan, Deputy Director of the Insurance Bureau under the FSC, stated that the bureau recently received two reports from the public who saw people recommending the purchase of Hong Kong insurance policies on online platforms such as Instagram, Facebook, and Line. These offshore insurance products may be issued by foreign insurance companies not licensed by the FSC, or they could be forged policies from foreign insurers. He urged the public not to buy them.
Chen warned that foreign insurance companies operating without permission in Taiwan issue policies that have naturally not passed regulatory review. Consumers who purchase offshore insurance policies (also known as underground policies) may face five major risks. First, in the event of an insurance claim dispute, consumers must negotiate with the foreign insurance company on their own and may not receive proper resolution, leaving them with no recourse.
Second, offshore policies are often written in English or are Chinese translations, making information potentially opaque and preventing consumers from fully understanding the contract terms. Third, there is insufficient legal protection; the insurance company issuing the offshore policy is not regulated by Taiwan's Insurance Act, and the purchased product is not covered by the Insurance Stabilization Fund.
Fourth, unscrupulous individuals may provide fake offshore policies, and consumers, finding it difficult to distinguish authenticity, may be defrauded of their premiums, resulting in financial loss. Fifth, tax benefits are not applicable. Because offshore policies are not recognized under Taiwanese law, premiums paid by consumers cannot be used as itemized deductions for income tax. Furthermore, even if a beneficiary is designated for the death benefit of an offshore policy, the provision in the Insurance Act that death benefits are not considered part of the insured's estate does not apply.
Chen pointed out that according to the Insurance Act, anyone acting as an agent, broker, or solicitor for an insurance business not governed by the Insurance Act or for a foreign insurance enterprise may be sentenced to up to three years in prison and may be fined between NT$3 million and NT$20 million. In severe cases, the competent authority may suspend part or all of the business of an insurance agent, broker, surveyor, or a bank concurrently operating as an insurance agent or broker, or revoke its license and cancel its practicing certificate.
The FSC emphasized that no one is allowed to act as an agent, broker, or solicitor for offshore insurance policies within Taiwan; doing so would incur criminal liability for illegally selling offshore policies. If the public finds concrete evidence of individuals soliciting offshore insurance policies, they can submit the evidence to judicial authorities or report it to the FSC. (Editor: Yang Lanxuan) 1150604