台灣銀行家雜誌第92期106.08 / Cheng Hsiao-wen
The government is advised to loosen restrictions on fintech to allow Taiwan to tap opportunities in the smart medical segmentThe government is advised to loosen restrictions on fintech to allow Taiwan to tap opportunities in the smart medical segment
There is strong potential to apply advanced financial technology in the emerging field of smart medicine in Taiwan, but current regulations make that impossible, specifically the Personal Information Privacy Law. Wang Li-ling is a professor in Chengchi University's Risk and Insurance Department, and a director in the Financial Technology Research Institutute. Previously, he served as Chairman of the Financial Supervisory Commission. He points out that the US and Europe are both moving to integrate blockchain technology and smart contracts into their infrastructure and other areas. If Taiwan can also do so, it will will be able to better catch up with global trends. Spillover insurance policies, in effect for many years in other countries, were first introduced to Taiwan in 2016. In Taiwan's case, this type of insurance policy entails introducing smart medical service to insurance products. The "spillover effect" refers to the feature of this type of insurance whereby if the health conditions of insurance holders improve, the interest rate on their insurance can be lower in the future. With a lower rate as an incentive, people are willing to make changes to their lifestyle. This has a positive spillover effect on society. Currently, car, life and health-insurance products in Taiwan offer these types of policies. With spillover insurance, when the consumer has had the insurance for a certain period of time, the insurance company will offer free health checks. If the the person's health condition is sufficienctly robust, he or she will be be entitled to deduct some fees from the policy. Over time, this reduces the financial pressure on national health insurance. Meanwhile, spillover insurance is beneficial for insurance companies as it collects lots of data about customers' lifestyle habits and health. This data is important for R&D and marketing purposes.Fintech requires an integrated platform to work properly. This platform incorporates big data, artificial-intelligence deep learning and system computing in a transparent manner to do analytical work. This is beneficial for all parties involved, helping to boost risk management ability and innovative product service. Blockchain and smart contract technology can protect personal information At present, Taiwan's Insurance Act and Personal Information Protection Act require that buyers of insurance policies sign their insurance policies in person, since the buyers' personal information is revealed in the applications. Buyers must give their consent for their personal information to be used in data analysis. Globally, many countries are aging. As such, insurance companies and medical firms are increasingly reliant on smart medical solutions, which can help them with product innovation and risk management. Smart medical technology (including wearable devices) is becoming mainstream in both the US and Europe in specific areas of medicine, such as long-term care, dementia research and preventive medicine. The US and Europe have different personal information protection laws which they are gradually adjusting. Thus far in Taiwan, no such adjustments have taken place. Because the Personal Information Protection Act is strict, fintech development here is constrained. To ensure that the fintech sector can develop healthily in Taiwan, this law must be amended. Otherwise, we will miss the many opportunities in smart medicine. The technology used in blockchain and smart contracts is tamper-proof and transparent, making it safe for the transfer of personal information. Moreover, the information collected via this technology can be used for research purposes, which will be beneficial for many companies. The US and Europe are both moving to integrate blockchain technology and smart contracts into their infrastructure and other areas. This integrated platform incorporates big data, artificial-intelligence deep learning and system computing in a transparent manner to do analytical work. This is beneficial for all parties involved, helping to boost risk management ability and innovative product service. If Taiwan can also do so, it will will be able to better catch up with global trends National Chengchi University (NCCU) launches fintech regulatory sandbox NCCU's financial technology research center set up a regulatory sandbox innovation lab to support a draft act to allow fintech businesses to test their services and exempt them from legal restrictions for up to 18 months. One of the technologies being tested in the regulatory sandbox is online identity verification, which is important for preventing fraud. Demand for this technology is high among companies involved with online transactions. This technology has the potential to be highly beneficial for Taiwan's business environment. Online identity verification has the potential to reduce the need for conducting transactions in person, reducing labor costs, decreasing financial fraud and improving risk management. better the risk management. RegTech is an important element of fintech which focuses on streamlining compliance and ultimately transforming how regulation works. In the second half of this year, NCCU's regulatory sandbox lab plans to invite firms from the US, Australia and Asia involved in financial regulation to attend a seminar and share their experiences. This seminar will be useful for policymakers and businesspeople. NCCU's regulatory sandbox lab has regularly organized meetings and seminars. It has invited numerous companies to present their views on current financial regulations and other issues affecting the development of Taiwan's fintech sector. NCCU's regulatory sandbox lab hopes to understand the obstacles these companies are encountering and how they can be overcome in a manner that's beneficial for the fintech industry, the government and consumers. Taiwan's National Health Insurance (NHI) system contains a treasure trove of data on the health of the nation's citizens which can help the smart medical sector develop. Previously, the Financial Supervisory Commission (FSC) proposed working with the Ministry of Health and Welfare to allow insurance companies to use this data for product innovation and pricing. The data can help Taiwan to build a preventive medical system and ultimately change the way consumers use medical care here. In the long run, when an increasing number of people are healthy, less of Taiwan's citizens will overuse medical resources and there will be a reduced burden on the NHI system. Because this proposal involves cross-departmental integration, it requires a top-down platform. Former Premier Chang Sheng-ford suggested that Taiwan develop an open database for big data. Ford said that the Executive Yuan and National Development Council should play a leading role in organizing this initiative to ensure its success. Integration across different industries and government departments is a quintessential feature of fintech development. This type of integration is essential for smart medical, AI, and blockchain. The government should prioritize the development of the smart medical sector, enlist the assistance of technology experts, and let the Executive Yuan lead the initiative. Executing this plan is important to ensure fintech develops soundly in Taiwan.