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Compulsory Automobile Liability Insurance
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Taiwan Insurance Institute


  1. Preface

    Consensus reached at the First National Insurance Meeting in 1983 demanded the establishment of an organization overseeing the nation-wide activities of insurance statistics, actuarial practices, research, and training in hopes of nurturing a productive insurance industry. Two years later in March, 1985, the Ministry of Finance approved the proposal for Taiwan Insurance Institute (TII). Starting of July 1, 1985, Taiwan Insurance Institute (TII) was officially inaugurated and in full operation since.

  2. History

    Three phases depict the development history of Taiwan Insurance Institute as follows: First phase (1985~1997): groundwork in statistics, training, and research Second phase (1998~2003):additional businesses into the insurance testing and claims mediation domains; further development in the actuarial and information technology services.

    Third phase(2004~present):built upon the existing framework, the business is further expanded into financial analysis and actuarial service, mid and high level personnel training as well as the development and validation of the interdisciplinary talents. In response to the liberalization of Taiwan non-life insurance premium rates, a specialized unit in Actuarial Department－was set up in 2007 to strengthen the said function of TII.TII will continue its current functions in extension of insurance education, enrichment of insurance professional, promotion of insurance supervisory policies, handling of insurance disputes, protection of consumer rights etc.－all for the proliferation of the insurance industry.

  3. Organization
    • Research Department:

      all insurance-related researches include IFRS 4,EU Solvency II, emerging issues, supervisory policy formation and etc.

    • Actuarial Department:

      a specialized Unit of Statistics and Actuarial Service for life and non-life insurances, research and regular rate review on CALI, researches related with life insurance products and reserve adequacy, promotion and review over the liberalization movement of non-life insurance premium-rates; insurance supervisory database.

    • Information Technology Department:

      establishment of the Taiwan e-Insurance Signature (TeIS) platform, CALI Information Processing Center.

    • Education and Training Department:

      in-service training, conferences, licensing and certification

    • International Department:

      international cooperation, information search on international insurance market

    • Administration Department:

      administration and human resource management

    • Accounting Department:

      accounting and financial affairs


  1. Preface

    In order to further improve the Compulsory Automobile Liability Insurance (CALI) system and collaborate better with the planning and studying, the competent authority entrusted Taiwan Insurance Institute (TII) to carry out researches related to the CALI in October 2005. Consequently, TII established "CALI Actuarial and Research Development Task Force (the "CALI Task Force")," which consists of four working groups. The working groups are: ratemaking and statistic working group, reserving and financial accounting working group, IT working group, and laws and regulations working group. The 4 work groups have been integrated into 2 work groups starting from 2015 fiscal year, which are the group of actuary and finance and accounting work, and, respectively, to continuously conduct the study and execution of relevant topics of this insurance actuary, reserve funds, as well as laws and regulations, in order to benefit the long-term development of CALI's insurance.

  2. Main Missions
    1. To conduct rate review and the analysis and control of loss ratio so that the insured can enjoy a fair and reasonable premium rate.
    2. To reevaluate annually the adequacy of reserves, thus ensuring the long-term development of the CALI.
    3. To fulfill the implementation of independent accounting scheme for the CALI exactly.
    4. To assess and improve the CALI related laws and regulations in order to enhance insurers' operation of the CALI and realize the protection of consumer rights.
  3. Main Missions Achieved
    1. Regular rate reviewing

      Review the net premium of the CALI and expenses loading from each item in order to ensure that CALI premium qualifies the principles of fairness, reasonability, and adequacy.

    2. Regular monitoring and discussion on loss ratios

      Control effectively the loss cost of the CALI through examining and analyzing each insurance company and the overall industry's loss ratios and development trends.

    3. Regular discussion on the CALI various reserves and monitoring on the reserve adequacy

      Analyze the adequacy of the CALI various reserves and forecast the changes of reserves for strengthening the overall financial stability of the CALI.

    4. Study on the independent accounting scheme

      Studied the implementation of independent accounting scheme.

    5. Establishment and assessment of the inquiry mechanism

      Build inquiry systems in the information processing center which can be used by insurance companies, insurance brokers and agents. The information processing center should deliver premium-related information under the requirements of the Personal Data Protection Law.

    6. Reviewing and researching on the CALI Act

      Strengthen the protections for consumers and victims in traffic accidents through reviewing the CALI Act which enables further improvement on the CALI operation.

    7. Establishment of related mechanisms

      Establish "Differentiation Supervision Mechanism" and "Comprehensive Audit Mechanism" in order to understand and to help improve each insurance company's operation of the CALI.

    8. Reviewing the Actuarial Report of CALI

      Provide the analyzed data and reviewed results to the competent authority to understand the situation of the reserves management by reviewing the Actuarial Report.


  1. Preface

    The Compulsory Automobile Liability Insurance (CALI) is a mandated insurance for all owners of automobiles and motorcycles. To ensure the accuracy of the premium rates, the Non-Life Insurance Association had delegated Trade-Van Information Services Co. to take in charge of the operation and maintenance of the CALI database system when the CALI became effective. After the first amendment of the CALI Act in 2005, the competent authority entrusted Taiwan Insurance Institute (TII) to take over the database system, providing the claim-based rating level information which could be used for calculation of premium.

    After taking over this task, TII established a "Disaster Recovery Center (DRC)" in December 2005. With DRC, when an uncontrollable disaster occurs, the database system can be resumed in a short time to ensure the stability and continuity of the service.

    Since 2015, the operations and management of the information working group in the original group handling insurance actuary and research development have been transferred to the Information Operations Center, for it to continuously study on the topics of query system functions, database accuracy, and informational safety; as well as the promotional suggestions of relevant informational operations for the CALI's insurance in order to facilitate the promotion and implementation.

  2. Main Missions
    1. To establish accurate database related to the CALI in order to provide CALI premium inquiry services and protect the rights of the insured.
    2. To strengthen business writing / endorsement / claim data transmission procedures so as to ensure the quality of the data.
    3. To clean the files of the database regularly in order to enhance the accuracy of the renewal premium rates.
    4. To verify the correctness of premium rates for the purpose of protecting the rights of the insured.
    5. To conduct semi-annual testing in order to check for possible flaws in the application system.
    6. To rehearse disaster recovery plan semi-annually so that the business continuity of the CALI can be ensured.
    7. To review the website information materials for users of the center.
    8. To deliver accurate website information while abide to the data protection regulations and data security guidelines.
    9. To organize workshops regularly to help employees of insurance companies being familiar with the system's functions.