Taiwan-based insurers are gearing up for a big overhaul in their regulatory framework. The transition to the Taiwan Insurance Capital Standard (TW-ICS) is slated for January 2026, though some provisions will have a lengthy phase-in period. Over time, the impact on capital-based relative value could lead some insurers to consider transforming their asset allocations.

The shift will happen along with the adoption of a new accounting regime, International Financial Reporting Standard 17 (IFRS 17). TW-ICS is intended to align Taiwan’s regulatory framework with international standards, including Solvency II in Europe as well as Japan and Korea, who have already implemented their version of the ICS. In doing so, the Financial Supervisory Commission hopes to bolster the strength of Taiwan’s insurance sector.

You can now read the full whitepaper at the link below