Financial Supervisory Commission Order

Issue date: October 27, 2022

Document number: Jin-Guan-Jian-Bao-Zi No. 11106101871

1.A domestic insurance company shall comply with the following matters when applying to the FSC to adopt a risk-based internal audit system in accordance with Article 18-1, Paragraph 1 of the Regulations Governing Implementation of Internal Control and Auditing System of Insurance Enterprises:

(1)Application deadline: The application must be submitted to the FSC before the end of August every year, and the risk-based internal audit system shall be implemented in the following year after obtaining approval from the FSC.

(2)Internal approval procedures: For this application, the insurance company shall first submit application documents to supervisors or the audit committee for review, and document the review process. If the insurance company does not have an audit committee, the documents shall be delivered to the independent directors for comments, and approved by the board of directors.

(3)Required application documents (the application may be rejected if the contents are incomplete or explanation is insufficient and supplement or correction is not completed before the time limit prescribed by the FSC):

A.See the attachment for the self-evaluation form for applications to adopt a risk-based internal audit system.

B.Also attach review results of the audit committee and the proposal approved by the board of directors and meeting minutes. If an audit committee was not established and a supervisor or independent director expressed a dissenting or qualified opinion, also attach the opinion.

2.After a domestic insurance company receives approval from the FSC to adopt a risk-based internal audit system, the implementation quality of the insurance company will be considered by the FSC for adjusting the examination frequency.

3.This Order shall become effective immediately.