Supervisor of the Insurance Agents Association Lu Hsiang-chung "Hong Chun-pei Public Welfare Lecture"

(Taiwan TB News Network / Reporter Zeng Cai-xuan) Insurance has become one of the important tools for risk management in modern life. When people want to purchase an insurance policy, the first person they think of is an insurance salesperson. However, some of these people represent insurance companies, while others represent insurance agent (or broker) companies.

On December 20, 2015 (Republic of China year 104), the Hong Chun-pei Culture and Education Foundation invited Lu Hsiang-chung, Supervisor of the Republic of China Insurance Agents Commercial Association, to speak on "Insurance Agents: Innovation and Breakthrough," sharing his years of experience in the insurance industry and the service sector.

As for what constitutes an insurance agent, Article 8 of the Insurance Act stipulates: "A person who, based on an agency contract or authorization letter, collects fees from the insurer and acts as an agent in operating business." Therefore, the relationship between an insurance agent and an insurance company depends entirely on the "scope of authorization" and the "agency contract" between them.

From a standpoint perspective, insurance agents operate the insurance business in a professional manner; in practice, an insurance agent is similar to a miniature insurance company, establishing administrative units related to education and training, business marketing, contract underwriting, policy issuance, claims, investigation, customer service, and premium collection in accordance with the contents of the agency contract.

In addition to being able to simultaneously represent the business of several insurance companies, one can also draw on extensive practical experience to identify differences in the administrative operations of various insurance companies, promptly negotiate amendments with the insurer to meet the actual needs of the insured, and achieve 100 percent customer satisfaction.

According to the Financial Supervisory Commission, before 2020 at least ten insurance companies were willing to invest in fintech innovation and product research and development, including seven life insurance companies and three property insurance companies. The Financial Supervisory Commission is actively promoting fintech and relaxing restrictions on insurance industry reinvestment in fintech and related industries, allowing 100% ownership of fintech company equity.

The Financial Supervisory Commission also estimates that after five years, with the opening of online insurance purchases, cumulative premiums for life insurance companies could reach 3 billion yuan, and cumulative premiums for the property insurance industry could reach 2.86 billion yuan, totaling 5.86 billion yuan. Tai'an Property Insurance has already combined automobile insurance with driving recorders and plans to launch a new policy, which is under review by the Financial Supervisory Commission. Officials stated that by collecting driving record information, it is possible to understand drivers' usage habits and whether they are good drivers, which can serve as a basis for premium increases or reductions.

Some insurance companies may in the future launch products that collect information through smart wristbands and health management platforms, combining this with products to offer related health insurance, and study the incidence rates of major illnesses and specific injuries using National Health Insurance data to estimate the first-onset rates and hospitalization rates of major illnesses and specific injuries across different genders and ages. Starting this year, such queries will also be made available to industry operators.

Brief profile of Supervisor Lu Hsiang-chung:

Graduated from the Department of Radiology at Central Taiwan University of Science and Technology and the Risk Management and Insurance Group of the Graduate Institute of Business Administration at Feng Chia University. He has served as manager of the communications division at Global Life Insurance Company, administrative manager at Beihai Insurance Brokerage Company, general manager of President Personal Insurance Agent Company, evaluation committee member for the 2007 academic year at technical and vocational colleges under the Ministry of Education, 5th-term director of the Republic of China Insurance Agents Commercial Association, and corporate instructor at St. John's University, Ming Chuan University, Providence University, and Asia University, as well as industry lecturer at the 2nd Financial Lecture Hall of the Republic of China Financial Association.

Currently serving as general manager of President Comprehensive Insurance Agent Company, 6th-term supervisor of the Republic of China Insurance Agents Commercial Association, and chairman of the Education and Training Committee; he holds professional licenses as a personal insurance agent and insurance broker, as well as qualifications as a life insurance underwriter, wealth management professional, trust professional, securities salesperson, investment-linked insurance professional, and property insurance salesperson.