Due to the rapid change of economic environment and the increase of consumer consciousness in Taiwan, the traditional insurance market system has not been able to satisfy the consumers’ need. Therefore, they have turned to the insurance brokers in order to receive more value-added services. As a result, the insurance brokers have played a more important intermediary role in the insurance market.
However, while the insurance broker channels have expanded, many problems have raised. For example, brokers control market price and use extremely low price to induce high competition. Furthermore, brokers playing as double agent roles cause the interest conflicts. To rent license for other people also makes chaos in market. Therefore, how to improve the insurance broker, maintain the usual operations of the insurance companies, and to safeguard the consumers’interests are important issues for the insurance supervisory authority in Taiwan.
This research have several contributions as follow. Firstly, this paper illustrate the current status of the insurance market system, the role and function of the insurance brokers, and the system of the insurance brokers in Taiwan. Then, this paper examines the defects of the insurance broker system in terms of the legal regulations, educations and business operations. Subsequently, this paper compares insurance brokers system in Taiwan with other countries'' successful experience such as United State, United Kingdom and Japan. Finally, based on descriptions are mentioned as above, this paper offers seventeen concrete suggestions for the insurance supervisor authority in Taiwan. Wish our conclusions will give some improvements and inspirations for the current insurance broker system in Taiwan.