A Study on the Business Opportunities of Privatizing the Labor Pension System in Taiwan：The Case of the Insurance Industry
Date Issued
2007
Date
2007
Author(s)
Chang, Min-Yuan
DOI
zh-TW
Abstract
The higher percentage of the aged population in Taiwan, along with the implementation of new labor pension law, has made people more aware of the importance of old-age retirement planning. The return and asset allocation of the fast-accumulated labor pension fund will have a great influence on the retirement life quality of millions of laborers; it also has profound impacts on all laborers’ benefits and the national economic growth.
Through the implementation of the portable new pension scheme, laborers' life after retirement will be much more safeguarded. However, we found that there is still much room for improvement. The defined contribution pension system such as the 401k scheme in USA is a suitable model for our reference. Besides, the successful experience of Hong Kong’s mandatory provident fund scheme launched during the great depression in 2000 is another good paradigm. According to the Council of Labor Affairs, the labor pension system will be privatized in the future. Through the understanding of the pension system and related products and service in USA and Hong Kong, this study suggests that future privatization provide more investment options so as to establish a complete retirement protection scheme. Meanwhile, this study also explores the life insurers’ role in the future pension system, the business development strategies, and the product trends, offering the ideas of pension business development for insurers.
Taiwan’s life insurers have great experiences in handling life risk and long term asset-liability management; therefore, they are expected to have significant advantages in the pension market, and share much more social security responsibility by entering the pension market. Combining foreign development experiences and local insurers’ current status, this study summarized the following suggestions for life insurers:
1. Enhance current product features to provide more innovative products.
2. Set up a convenient and flexible investment platform for clients.
3. Leverage life agents’ customer bases and group insurance business relationships to extend pension market.
4. Establish an integrated service process, an e-service channel and simplify service procedure to provide differential services.
5. Provide retirement planning education to the public continuously.
Subjects
勞工退休金條例
401(k)
強積金計劃
年金
Labor Pension Act
MPF
Annuity
SDGs
Type
other
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ntu-96-P93745023-1.pdf
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