Taiwan - Tier B · Elevated · Case: Cathay Century Insurance
Posted: Sun Oct 11, 2026 5:38 am
Fijishi Jurisdiction Index 2026 · Entry TW · Published 12 October 2026
At a glance
1. The rules in Taiwan
Taiwan's AI Basic Act was promulgated on 14 January 2026 and has been in force since 16 January 2026. It requires government agencies, including the Financial Supervisory Commission, to complete the necessary rules within two years. The Commission's AI Guideline (20 June 2024) describes itself as not binding.
The insurance industry's Self-Regulatory Rules on the Use of AI Systems, issued by the life and non-life insurance associations and filed with the Commission, were amended on 3 March 2026. They require a pre-use assessment of AI systems that affect consumers' rights, and a designated senior executive or committee to supervise AI use. The associations enforce them with their own fines.
Who these rules reach
This band describes how clearly the rules meet the AI use that Cathay Century Insurance has itself published. It is not a finding that Cathay Century Insurance has breached any rule.
Why Cathay Century Insurance: Cathay Century's own release of 22 January 2026 describes AI used to identify suspected fraud and to quantify compensation standards in claims.
The question
3. The same question for other firms in Taiwan
Any insurer in Taiwan using AI where it affects consumers' rights faces the same point: who is accountable for an AI-shaped claim decision, the person who acts on the output or the executive or committee designated to oversee AI. This entry gives no band to any firm other than Cathay Century Insurance.
4. What this entry does not establish
Sources
None share a law or regulator with this entry.
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Commercial relationship with any party named here: None · Right of reply: indexreport.protocol@fijishi.com; with the sender's agreement, replies are published in full below the entry, dated · Cite as: Fijishi Jurisdiction Index 2026, Entry TW · Corrections: none.
At a glance
| Jurisdiction tier | Tier B - Specified; enforcement stated, not yet live. AI is specified as for Tier A, and a mechanism to check or sanction it has been stated but is not yet shown to be live. |
| Case examined | Cathay Century Insurance - AI in fraud identification and compensation standards |
| Band for this case | Elevated |
| Rules reach | Insurers: directly · Reinsurers: not stated · Intermediaries: not stated |
| Last verified | [actual date of the launch-window check] |
Taiwan's AI Basic Act was promulgated on 14 January 2026 and has been in force since 16 January 2026. It requires government agencies, including the Financial Supervisory Commission, to complete the necessary rules within two years. The Commission's AI Guideline (20 June 2024) describes itself as not binding.
The insurance industry's Self-Regulatory Rules on the Use of AI Systems, issued by the life and non-life insurance associations and filed with the Commission, were amended on 3 March 2026. They require a pre-use assessment of AI systems that affect consumers' rights, and a designated senior executive or committee to supervise AI use. The associations enforce them with their own fines.
Who these rules reach
- Insurers: directly. Article 12 of the industry rules begins "保險業運用 AI 系統提供第三條之服務前" (before an insurance enterprise uses an AI system to provide the services in Article 3).
- Reinsurers: not stated.
- Intermediaries: not stated.
This band describes how clearly the rules meet the AI use that Cathay Century Insurance has itself published. It is not a finding that Cathay Century Insurance has breached any rule.
Why Cathay Century Insurance: Cathay Century's own release of 22 January 2026 describes AI used to identify suspected fraud and to quantify compensation standards in claims.
The question
In briefCathay Century Insurance says that in claims it uses a relationship-network model to identify insurance-fraud patterns, which has blocked more than NT$29 million, and AI judgment-retrieval technology to quantify compensation standards in real time, raising claims-handling efficiency by 83% (22 January 2026). The insurance industry's Self-Regulatory Rules on the Use of AI Systems, jointly issued by the life and non-life insurance associations, amended on 3 March 2026 and filed with the Financial Supervisory Commission, apply where an insurer's AI system affects consumers' transaction rights or has a material impact on operations. Before using AI for those services, an insurer must assess the system's data governance, information security, supervision mechanism, consumer protection and contingency measures, with opinions from its information-security, compliance and risk-control units (Article 12), and it must designate a senior executive or committee able to oversee work across departments to be responsible for supervising its use of AI systems (Article 7). Where one of these systems flags a claim as possible fraud or sets the compensation standard for it, who at Cathay Century is accountable for the resulting claim decision: the claims handler who acts on the output, or the senior executive or committee designated under Article 7?
Why this band: The question points to one firm and two named duties, but the rules it rests on are industry rules, not a regulator's binding instrument.Cathay Century says it uses AI to spot suspected fraud in claims and to set compensation standards. Taiwan's insurance industry rules require insurers to assess how such systems are supervised before using them where they affect consumers' rights, and to name a senior executive or committee responsible for overseeing their use of AI. Nothing Cathay Century has published says who is accountable when one of these systems shapes a claim decision.
3. The same question for other firms in Taiwan
Any insurer in Taiwan using AI where it affects consumers' rights faces the same point: who is accountable for an AI-shaped claim decision, the person who acts on the output or the executive or committee designated to oversee AI. This entry gives no band to any firm other than Cathay Century Insurance.
4. What this entry does not establish
- The Commission's AI Guideline, the AI Basic Act and the Insurance Act were read through processed copies.
- Cathay Century's figures (NT$29 million blocked; 83% efficiency) are the company's own and were not checked.
- Whether a person reviews each flagged or quantified claim. This entry says nothing either way.
- January 2028: agencies' rules under the AI Basic Act are due (Article 18: within two years of the Act taking effect).
Sources
- Cathay Century Insurance, news release, 2026/01/22 (printed). Company's own, Chinese. cathay-ins.com.tw
- Cathay Century, company profile page (undated; observed 27 September 2026). Company's own. cathay-ins.com.tw
- Life Insurance Association and Non-Life Insurance Association of the Republic of China, 保險業運用人工智慧系統自律規範, amended 民國115年03月03日 (printed). Industry rules filed with the regulator, Chinese. law.lia-roc.org.tw
- Financial Supervisory Commission, 金融業運用人工智慧（AI）指引, 民國113年6月20日 (printed). Regulator, Chinese. law.fsc.gov.tw
- 人工智慧基本法 (AI Basic Act), promulgated 民國115年01月14日 (printed). Statute, Chinese. law.nstc.gov.tw
- 中央法規標準法 (Central Regulation Standard Act), Article 13. Statute, Chinese. law.moj.gov.tw
None share a law or regulator with this entry.
________________________________________
Commercial relationship with any party named here: None · Right of reply: indexreport.protocol@fijishi.com; with the sender's agreement, replies are published in full below the entry, dated · Cite as: Fijishi Jurisdiction Index 2026, Entry TW · Corrections: none.