FSC: Insurance Industry's Strategic Investments Now Include AI New Ten Major Construction Projects

(Central News Agency reporters Su Sih-Yun and Lu Yan-Ci, Taipei, June 16) The Financial Supervisory Commission (FSC) announced today that to encourage insurance companies to invest in domestic public infrastructure and real economy sectors, strategic investments in the insurance industry will now include the 'AI New Ten Major Construction' initiatives, covering areas such as silicon photonics technology, AI robotics, and computing infrastructure. Additionally, the FSC has raised the investment limit for insurance companies investing in domestic private equity (PE) funds from 20% to 25% of the investee, effective immediately.

Wang Li-Hui, Director of the FSC's Insurance Bureau, stated at a regular press conference that the two main measures are: first, adding the 'AI New Ten Major Construction Promotion Plan' to the list of eligible strategic industries for insurance investment; and second, adjusting the investment limit regulations for domestic private equity funds.

Wang explained that the Executive Yuan approved the 'AI New Ten Major Construction Promotion Plan' on January 28 this year. To encourage insurance companies to invest in related industries and support the government's AI development goals, the FSC has revised its interpretation guidelines to explicitly allow insurance companies to invest in or lend to strategic industries under this plan, thereby expanding the scope of insurance fund utilization.

The AI New Ten Major Construction projects, as referenced from the National Development Council (NDC) plan, are categorized into three major types: intelligent applications, key technologies, and digital infrastructure. These include silicon photonics technology, AI robotics, and computing infrastructure.

For direct investments in strategic industries, the risk factor remains at 30%. However, for indirect investments through venture capital or private equity funds, the risk factor is reduced to 17.25%.

Furthermore, in line with the development of the domestic private equity fund market, Article 2, Paragraph 2 of the Special Use Regulations stipulates that insurance companies may invest in domestic PE funds that meet regulatory requirements and focus on government policy-driven projects, subject to relevant rules.

Wang noted that to encourage investment in public infrastructure-type PE funds, the FSC has revised the guidelines to increase the investment limit—from 20% to 25% of the investee—for insurance companies investing in domestic PE funds that have obtained qualification letters under the 'NDC Guidelines for Promoting Private Equity Fund Investment in Industries.' This adjustment aims to enhance the efficiency and flexibility of insurance fund allocation.

Aligned with the NDC's 'Trillion-Yuan Investment National Development Plan,' the FSC has established a platform to channel funds into public infrastructure and strategic industries, promoting the flow of insurance and private capital into infrastructure, renewable energy, and the five pillars of trusted industries. As of the end of the first quarter of this year, the total amount invested by the insurance industry in public and social welfare projects under special-use arrangements reached approximately NT$638.5 billion, an increase of NT$9.6 billion compared to the same period last year. (Edited by Yang Lan-Xuan) 1150616