FSC Urges Insurance Agent Service Contracts to Revert to Civil Code, Not Suitable for Inclusion in Insurance Act
Regarding the long-standing dispute over the labor contracts of insurance agents, the Financial Supervisory Commission (FSC) has expressed the view that they should be governed by the Civil Code and related laws, not the Insurance Act. This clarifies its stance of treating the labor relations of agents as equivalent to general labor contracts.
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- 📰 Published: April 21, 2026 at 22:46
- 🔍 Collected: April 21, 2026 at 23:02 (16 min after Published)
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(Central News Agency, Taipei, 21st, by reporter Su Ssu-yun) The dispute over whether the service contracts between insurance companies and their agents are employment-based or commission-based has continued for many years. A report from the Financial Supervisory Commission (FSC) points out that the labor relationship between the insurance industry and its personnel is essentially no different from a general service contract and should revert to the provisions of the Civil Code and related laws. It is not appropriate to regulate matters concerning agents' service contracts within the Insurance Act and related regulations.
The Finance Committee of the Legislative Yuan will hold a public hearing tomorrow on the "Draft Amendment to Article 177 of the Insurance Act." The topics for discussion include "whether the FSC should establish rules for labor contracts, education and training, reward and punishment systems, and appeal channels for situations where a labor contract exists between an insurance agent and their affiliated insurance company," and "the feasibility of co-organizing insurance agent education and training by labor unions to establish a diverse insurance education system."
The FSC's written report states that the Insurance Act is composed of the Insurance Contract Act and the Insurance Business Act. Its legislative purpose is to regulate the rights and obligations of insurance contracts and the supervisory measures for the insurance industry, in order to protect consumer rights and maintain discipline in the insurance market. Based on this legislative purpose, the regulations for insurance personnel in the Insurance Act and related laws should focus on their qualifications and solicitation conduct. As for the labor relationship between the insurance industry and its personnel, it is essentially no different from a general service contract and should revert to the provisions of the Civil Code and related laws.
The FSC pointed out that if the contractual relationship between an agent and their affiliated company is a labor contract, the Labor Standards Act already has a complete legal framework for regulation and protection. If it is not a labor contract, the agent has no subordinate relationship with their affiliated company, and both parties enter into the contract on a more equal footing. Matters concerning their service relationship should be determined by both parties based on the principle of freedom of contract. Therefore, the current provisions should be maintained, and it is not appropriate to regulate agents' service contracts in the Insurance Act and related regulations.
The FSC explained that the current "Management Rules" already regulate matters such as education and training, reward and punishment systems, and appeal channels for insurance agents. These matters are already regulated under the "Management Rules" authorized by Article 177, Paragraph 1 of the Insurance Act, so there is no need for duplicate provisions. It is recommended to maintain the current provisions and not to amend them.
As for the feasibility of co-organizing insurance agent education and training by labor unions, the FSC pointed out that it has no direct authority to command, supervise, or manage labor union organizations. Currently, insurance companies are responsible for managing their affiliated agents. It is not appropriate to add provisions in the "Management Rules" for unions to organize education and training. However, the life and non-life insurance associations could amend their guidelines for insurance agent education and training to allow insurance companies to entrust specific training courses to qualified insurance-related institutions or groups.
The FSC explained that the Insurance Bureau had already convened a meeting on March 2 with the National Federation of Trade Unions, the Taiwan Confederation of Trade Unions, and the life and non-life insurance associations. It was decided that the life and non-life insurance associations would subsequently add a provision in the guidelines for insurance agent education and training that "insurance companies may entrust the handling of education and training courses to qualified insurance-related institutions or groups." The minutes of the March 2 meeting state that the aforementioned "institutions or groups" include the two national insurance agent labor unions, and the meeting minutes have been provided to the two confederations. (Editor: Yang Kai-hsiang) 1150421
The Finance Committee of the Legislative Yuan will hold a public hearing tomorrow on the "Draft Amendment to Article 177 of the Insurance Act." The topics for discussion include "whether the FSC should establish rules for labor contracts, education and training, reward and punishment systems, and appeal channels for situations where a labor contract exists between an insurance agent and their affiliated insurance company," and "the feasibility of co-organizing insurance agent education and training by labor unions to establish a diverse insurance education system."
The FSC's written report states that the Insurance Act is composed of the Insurance Contract Act and the Insurance Business Act. Its legislative purpose is to regulate the rights and obligations of insurance contracts and the supervisory measures for the insurance industry, in order to protect consumer rights and maintain discipline in the insurance market. Based on this legislative purpose, the regulations for insurance personnel in the Insurance Act and related laws should focus on their qualifications and solicitation conduct. As for the labor relationship between the insurance industry and its personnel, it is essentially no different from a general service contract and should revert to the provisions of the Civil Code and related laws.
The FSC pointed out that if the contractual relationship between an agent and their affiliated company is a labor contract, the Labor Standards Act already has a complete legal framework for regulation and protection. If it is not a labor contract, the agent has no subordinate relationship with their affiliated company, and both parties enter into the contract on a more equal footing. Matters concerning their service relationship should be determined by both parties based on the principle of freedom of contract. Therefore, the current provisions should be maintained, and it is not appropriate to regulate agents' service contracts in the Insurance Act and related regulations.
The FSC explained that the current "Management Rules" already regulate matters such as education and training, reward and punishment systems, and appeal channels for insurance agents. These matters are already regulated under the "Management Rules" authorized by Article 177, Paragraph 1 of the Insurance Act, so there is no need for duplicate provisions. It is recommended to maintain the current provisions and not to amend them.
As for the feasibility of co-organizing insurance agent education and training by labor unions, the FSC pointed out that it has no direct authority to command, supervise, or manage labor union organizations. Currently, insurance companies are responsible for managing their affiliated agents. It is not appropriate to add provisions in the "Management Rules" for unions to organize education and training. However, the life and non-life insurance associations could amend their guidelines for insurance agent education and training to allow insurance companies to entrust specific training courses to qualified insurance-related institutions or groups.
The FSC explained that the Insurance Bureau had already convened a meeting on March 2 with the National Federation of Trade Unions, the Taiwan Confederation of Trade Unions, and the life and non-life insurance associations. It was decided that the life and non-life insurance associations would subsequently add a provision in the guidelines for insurance agent education and training that "insurance companies may entrust the handling of education and training courses to qualified insurance-related institutions or groups." The minutes of the March 2 meeting state that the aforementioned "institutions or groups" include the two national insurance agent labor unions, and the meeting minutes have been provided to the two confederations. (Editor: Yang Kai-hsiang) 1150421