Peng Chin-long Promotes 'All-Age Finance', Urges Insurance Industry to Shift from Passive Compensation to Innovative Services

(Central News Agency reporter Su Siyun, Taipei, 9th) As Taiwan enters a super-aged society, Financial Supervisory Commission (FSC) Chairman Peng Chin-long stated today that the FSC is promoting 'All-Age Finance', hoping financial services will cover all age groups. He recently exchanged views with the Ministry of Health and Welfare (MOHW) on how the insurance industry can assist the MOHW in strengthening elderly and child care services. Furthermore, he believes the financial industry needs a new business mindset, and the insurance industry, which has primarily focused on passive compensation, should shift from loss compensation to loss prevention and even provide innovative services.

Nan Shan Life Insurance held a forum titled 'Centennial Life: Be Prepared' this afternoon at the Taipei International Convention Center. In addition to Nan Shan Life President Fan Wen-wei, the forum featured speeches by Peng Chin-long and MOHW Minister Shih Chung-liang, as well as a keynote speech by Michael Sagner, a consultant at the King's College London Centre for Ageing Research and a global expert in longevity preventive medicine.

In his speech, Peng Chin-long said that as a professor, he has long been concerned about longevity risk. The term 'longevity' has a positive connotation in Chinese, but in an aging society, if fully prepared, longevity can be a joyful part of life. However, if financial, health, and other uncontrollable risks emerge, longevity can become a heavy burden for individuals. This is an issue that Taiwan, and indeed all of humanity, must face.

Peng Chin-long stated that Taiwan has entered a super-aged society, and the FSC hopes financial services can address longevity risk, hence the concept of 'All-Age Finance'. As society gradually ages, the customer base and needs of the financial industry are also undergoing significant changes.

He further pointed out that the financial industry should adopt a new business mindset and re-understand the new needs of customers. For example, the insurance industry has traditionally focused on passive compensation. However, in an aging society, the role of insurance should shift from loss compensation to loss prevention, and even provide more support services. What people need may not necessarily be money, but more innovative services.

Using the banking industry as an example, Peng Chin-long said that when people enter old age and their children may not be around, they should consider who can safeguard their assets until the end. Businesses need to explore new demands, which also involves new technology and investment. Furthermore, in the past, insurance companies needed empirical data to design products. However, facing the unprecedented trend of aging, there is no relevant data. How can companies design products and rebuild technology? They must humbly change their business models.

Peng Chin-long pointed out that as the competent authority for the financial industry, it should re-examine regulatory frameworks from a more forward-looking perspective. The insurance industry has traditionally focused on asset investment and risk management as its two main businesses. Whether more specialized services will emerge in the future warrants further consideration. Additionally, he recently had close exchanges with MOHW Minister Shih Chung-liang on how the insurance industry can assist the MOHW in improving elderly and child care.

Peng Chin-long also encouraged the industry to turn crises into business opportunities, allowing the financial industry to help drive social transformation and create new value.

Fan Wen-wei stated that Taiwan no longer has a demographic dividend, but the key lies in embracing the next wave of longevity dividends, ensuring wealth and health, and making longevity a positive and vibrant thing. The forum also invited experts to share insights. In fact, many people's lives end not due to serious illnesses or infectious diseases, but from chronic diseases such as cardiovascular disease and cancer, which often stem from poor lifestyle habits. Through diet, stress management, and environmental improvements, many diseases can be effectively prevented. (Editor: Pan Yijing) 1150609