Taiwan’s two main insurance industry associations agreed Tuesday to recognize digital COVID-19 certificates of those who have been confirmed as positive as a valid proof of infection, ending a two-day standoff with the country’s main financial regulator.
In a statement, the Life Insurance Association of the Republic of China announced that it would accept the digital certificates, which are overseen by the Ministry of Health and Welfare, as an alternative to written certificates of diagnosis for the purpose of claim reviews.
Meanwhile, the Non-Life Insurance Association of the Republic of China said it would “recommend” that its members — who sold the vast majority of COVID-19-related policies — adopt the same policy.
The dispute stems from a recent spike in insurance claims, which has brought large numbers of recovered COVID-19 patients crowding into hospitals to apply for paper documents proving their diagnosis.
In part, this has been fueled by fears that the policies were at risk of being canceled, given the unprecedented rise in COVID-19 infections in the country over the last few weeks.
Regulators’ stance
To address their concerns, the Financial Supervisory Commission (FSC) vowed on Sunday to protect the rights of policyholders but also urged people not to visit hospitals solely to apply for certificates of diagnosis.
However, when the regulator proposed that insurance companies begin accepting the digital certificates as a way of resolving the problem, it was met with unexpectedly strong opposition.
The insurers argued that there was a greater risk of fraud with the digital documents, making it significantly more costly to review individual claims.
However, as the issue came under increasing public scrutiny, the two industry associations held meetings Tuesday and agreed to reverse course.
At a press conference that day, FSC Chairman Huang Tien-mu (???) reminded insurers to be mindful of the social implications of their actions, citing the widespread distrust of the financial industry that followed the 2008 financial crisis.
“Financial losses can be regained, but it is hard to make up for a loss of trust,” he said.
Source: Focus Taiwan News Channel