Taiwan Expands Insurers’ Investment Scope in Health and Wellness Businesses

Table of Contents

• You might want to know


• Main Topic


• Key Insights Table


• Afterwards...

You might want to know

• How does Taiwan’s revised policy change the kinds of health and wellness businesses that insurers may invest in?


• What ownership limits and safeguards apply, and which care facilities remain outside the newly permitted scope?

Main Topic

Taiwan’s Financial Supervisory Commission (FSC) Insurance Bureau issued a new interpretation on the 6th, easing restrictions on insurers’ investments in health and wellness businesses. The policy aims to help life insurers redirect capital toward emerging needs in an increasingly aged society. Its most significant change is removing the former requirement that an investment target be directly connected to insurance-policy operations, such as underwriting, claims handling, or benefit payments. Under the revised rules, services supported by insurers do not have to be reserved for policyholders and may be available to the general public.

The change also creates a broader ownership option for certain businesses. Where an eligible health and wellness company is not publicly listed, an insurer may, in specified circumstances, hold up to 100% of its shares. Regulators say the policy is intended to encourage long-term insurance capital to flow into health-related industries and help build an ecosystem that connects financial services, healthcare, and support for people across different stages of life.

Insurance Bureau Deputy Director Tsai Huo-yen (蔡火炎) described three main considerations behind the revision. First, population aging is increasing public demand for health management and long-term care. Second, the previous framework constrained insurers by requiring a strong connection between an investment and policy benefits, underwriting, or claims. The new approach gives insurers more flexibility and allows potential services to reach people who are not their policyholders.

Third, the policy encourages insurers to expand beyond their traditional role of compensating customers after a loss. Regulators want the industry to consider services that support health promotion and disease prevention before a medical event, as well as long-term care and everyday living assistance afterward. This is a shift toward a more continuous model of support, although it does not mean that insurers may invest in every kind of healthcare provider or operate without regulatory oversight.

The revised policy takes effect immediately. The FSC divides eligible health and wellness activities into five broad areas:

• Health management and health promotion, including health examinations and pharmacy channels.


• Healthcare technology and digital applications.


• Long-term care and age-friendly services, including consulting for care institutions and assistive-device services.


• Healthy food and nutrition support.


• Integrated health and wellness platforms.

These categories cover a range of services, from prevention and routine health support to technology-enabled care and assistance with daily life. They may create opportunities for insurers to invest in companies that provide services directly, develop relevant technology, or coordinate offerings across multiple providers. However, the categories should be understood within the stated regulatory framework: inclusion in a broad area does not automatically remove other licensing or investment requirements that may apply to a particular activity.

Tsai said preliminary discussions indicate that insurers have shown the greatest interest in health-management consulting, pharmacy channels, and supplementary long-term-care services. These areas appear to attract attention because they can connect financial resources with services that address practical needs, including access to health information, medication-related support, and assistance for people requiring care. The regulator has not presented this early indication as a final ranking or commitment by every insurer.

The FSC has clarified three investment situations, with different limits depending on the relationship between the insurer and the target company and whether that company is publicly traded. For an insurance-related business in which the insurer has a controlling or affiliated relationship, the total investment is capped at 40% of the insurer’s owners’ equity, or net worth. If the target is a non-public company, the insurer’s stake in that individual company may reach 100%.

For an insurance-related business without a controlling or affiliated relationship, the total investment may not exceed 100% of the insurer’s owners’ equity. By contrast, an investment in a listed company, such as a publicly traded pharmacy chain, remains subject to Article 146-1 of Taiwan’s Insurance Act. Under that provision, the shareholding limit for any one listed company is 10%.

One important exclusion concerns residential long-term-care institutions and day-care centers. Because these are facilities subject to specific permits from Taiwan’s Ministry of Health and Welfare, they are not included in the investment scope opened by this policy. The distinction matters: the broader permission to invest in health and wellness businesses does not override the separate rules that govern these specifically licensed facilities.

The expansion has also prompted questions about whether substantial insurance capital could dominate domestic pharmacy or health-examination markets. The Insurance Bureau says its review will focus on the ability to control operational risks across professional disciplines. Healthcare and wellness businesses are not the traditional core business of insurers, so the regulator will examine whether applicants have suitable technical expertise and an appropriately qualified management team.

That assessment is intended to help ensure that investment decisions take account of the safety, liquidity, and profitability of insurance funds, while also considering public confidence and policyholder interests. The expanded investment scope is therefore paired with scrutiny of expertise, governance, and risk controls; permission to invest is not an assurance that every proposal will be approved.

In practical terms, the revised framework combines greater flexibility with differentiated limits. It allows insurers to consider a wider set of health-related activities and, in the case of eligible non-public targets under the specified controlling relationship, permits full ownership. Publicly traded companies remain subject to a separate single-company shareholding cap, while certain care facilities remain outside the newly opened scope. These distinctions are central to understanding both the opportunities and the boundaries of the policy.

Key Insights Table

Afterwards...

The policy’s long-term results will depend on how insurers, healthcare providers, technology firms, and regulators work together. Further exploration of digital health systems, secure data exchange, preventive-care models, and tools that support older adults could help establish whether investment leads to services that are accessible and effective. These developments also require careful attention to privacy, cybersecurity, clinical quality, and clear accountability between financial and healthcare organizations.

Regulators and industry participants may also need to assess how investment affects competition, particularly in markets such as pharmacies and health examinations. Transparent approval standards, ongoing monitoring, and public reporting could help clarify how capital is being deployed and whether it supports the intended social objectives without weakening market choice or policyholder protection.

Ultimately, the revised rules open a wider path for insurers to participate in health and wellness services, while retaining limits and review requirements. Continued study of responsible investment, age-friendly design, preventive healthcare, and measurable care outcomes will help determine how effectively this capital can support a society with changing health and care needs.