Taiwan is preparing to relax regulations to allow life insurance companies to invest directly in AI projects, hoping to leverage the over $1 trillion insurance industry to boost its economy.
June 16, 2569 at 16.35:XNUMX a.m. Bloomberg News reported that Taiwan is moving forward with regulatory reforms to allow life insurance companies to invest more directly in artificial intelligence (AI) projects. The aim is to utilize the insurance industry's vast financial resources to support domestic economic development and promote the goal of becoming a Smart Technology Island.
Taiwan's Financial Supervision Administration (FSC) revealed that Regulations will be amended to allow life insurance companies to directly invest in AI-related projects, as part of a strategy to accelerate the development of technology infrastructure and promote future industries in the country.
FSC specify that This regulatory reform aims to support Taiwan's AI sector, while simultaneously expanding investment options for insurance companies and enhancing the role of the financial sector in driving the domestic economy.
In addition, regulatory authorities are preparing to raise the investment limit for life insurance companies in certified domestic private equity funds, expanding the holding proportion from the current maximum of 20% to 25% of the total shares or registered capital of the fund.
The measures are part of an effort to bring capital back into the country, as Taiwanese life insurance companies currently hold more than $7 billion in overseas assets. For decades, insurance companies have preferred to invest in foreign bonds in search of higher returns due to limited domestic investment options.
Taiwanese authorities hope that opening up investment in AI and emerging businesses will help reduce capital outflow and bring domestic savings back to support local economic growth.
This reform is also part of a long-term plan to elevate Taiwan into a regional wealth management hub, with the government striving to elevate its financial sector to a global role, mirroring its semiconductor industry, a key strength of the country.
Meanwhile, the FSC is expanding its pilot wealth management zone for high-net-worth clients in Kaohsiung for a third year to test private banking services and family office businesses, as well as considering new measures such as expanding cross-border financial services for high-net-worth clients, relaxing restrictions on investments in private equity and private credit funds, and allowing insurance products to establish dedicated prepaid accounts.
FSC specify that Further details and support measures will be discussed with relevant agencies before an official announcement is made.
refer : www.bloomberg.com
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