Interpretive Order on the Regulations for Various Reserves to be Set Aside by Property Insurance Enterprises for Nuclear Energy Insurance

Financial Supervisory Commission Order
Issuance Date: October 2, 115th year of the Republic of China (2026) Document No.: Jin-Guan-Bao-Cai-Zi No. 11501410121

1. Pursuant to Article 18 of the Regulations Governing the Provision of Various Reserves by Insurance Enterprises (hereinafter referred to as the "Reserve Regulations").
2. Property insurance enterprises engaging in nuclear energy insurance shall set aside the following various reserves:
   (1) Unearned premium reserve.
   (2) Special reserve.
   (3) Claim reserve.
3. Property insurance enterprises engaging in nuclear energy insurance business shall set aside unearned premium reserves in accordance with Article 10 of the Reserve Regulations, and shall set aside claim reserves in the following manner:
   (1) For reported but unpaid claims, reserves shall be estimated and set aside on a case-by-case basis.
   (2) For unreported claims, reserves shall be set aside at one percent of the retained earned premium.
4. Property insurance enterprises engaging in nuclear energy insurance business shall set aside special reserves at fifty percent of the total retained earned premium for direct business and assumed reinsurance business, respectively.
5. The special reserve for nuclear energy insurance calculated by property insurance enterprises in accordance with the preceding point shall be allocated to special surplus reserves under equity, after deducting income tax, in accordance with International Accounting Standard 12. The accumulated amount of nuclear energy insurance special reserves allocated under liabilities before December 31, 114th year of the Republic of China (2025), shall continue to be allocated under liabilities from January 1, 115th year of the Republic of China (2026).
6. When the actual claim ratio for nuclear energy insurance exceeds sixty-five percent of the expected loss ratio, the excess portion may be offset first by the special reserve under liabilities, and any remaining deficit shall then be offset by the special surplus reserve under equity.
7. This Order shall take effect from the date of its issuance.