TAIWAN LIFE
It's our mission to protect andbuild our customers’ wealth.

SOCIAL
Make a positive impact on an
aging society in Taiwan.

GOVERNANCE
Create integrity and a transparent
foundation for corporate
sustainability.

ENVIRONMENTAL
Establish a low-carbon sustainable environment through our
impact.

2020

Taiwan Life
Sustainability ReportAbout this report
Taiwan Life Insurance Co., Ltd. (hereinafter referred to as “Taiwan Life,” “theCompany,” and “we”) has long been committed to fulfilling its corporate social
responsibility and implementing concrete sustainable actions. This report is preparedin accordance with the Core options of the GRI Standards, and with reference to thedisclosure standards issued by the Sustainability Accounting Standards Board(SASB) for the insurance industry. We voluntarily comply with the Principles for
Responsible Investment (PRI) and Principles for Sustainable Insurance (PSI) and oursustainability efforts are guided by the U.N. Sustainable Development Goals (SDGs).
Moving forward, we will issue a Sustainability Report every year as an important tool
for reviewing our sustainability practices and communicating the results withstakeholders regarding.

Reporting period
This is Taiwan Life’s first Sustainability Report. The information disclosure period of the report is Jan. 1, 2020, to Dec. 31, 2020. Any
information for periods before or after those dates is noted accordingly.
Scope of report
The information disclosed in this report is mainly for Taiwan Life, and its scope is limited to Taiwan. The financial data is consistent withthe scope of Taiwan Life’s consolidated financial statements. All financial figures are denominated in New Taiwan dollars, as certified bycertified public accountants in our financials. Some of the information regarding our environmental, social, and corporate governanceincludes CTBC Insurance Co., Ltd. (CTBC Insurance) and CTBC Finance Co., Ltd. (CTBC Finance), and is noted as such.
Quality of information
The content of this report was compiled in accordance with the six reporting quality principles of the GRI Standards: accuracy, balance,clarity, comparability, reliability, and timeliness. The report was issued after being reviewed by Taiwan Life’s management. The informationin the report has been certified/assured by an impartial third-party unit.

Information type

Compliance standard/source

Certification/assurance organization

Sustainability
information

The R.O.C. Statements of Assurance Engagements Standards No.
1 “Assurance Engagements Other than Audits or Reviews ofHistorical Financial Information”

Ernst & Young

Financial data

Annual financial statements

Environmental
data

ISO 14001 Environmental Management Systems
ISO 50001 Energy Management Systems
ISO 14064-1: 2018 Greenhouse Gas Quantification and Reporting

Information
security

ISO 27001 Information Security Management Systems
BS 10012 Personal Information Management Systems

OccupationalsafetyISO 45001 Occupational Health and Safety Management Systems

KPMG
British Standards Institution (BSI)
TaiwanSociété Générale deSurveillance (SGS) Taiwan
British Standards Institution (BSI)
TaiwanFeedback
Taiwan Life Insurance Co., Ltd. / Strategic Planning Department．Address: 12F., No. 188-1, Jingmao 2nd Rd., Nangang Dist., Taipei City, R.O.C.
．Tel: +886-2-8170-9888．Fax: +886-2-2785-8091．Corporate sustainability mailbox: sustainability@taiwanlife.com．Website: https://www.taiwanlife.com/．Corporate sustainability website: https://www.taiwanlife.com/html/ESG/index.html．Customer service hotline: 0800-099-850 (local), +886-2-8170-5156 (overseas)．Inquiries from invested companies, counterparties of transactions, investment service brokers, and other institutional
investors: +886-2-8170-9888 ext.6659．Government inquiries: +886-2-8170-9888 ext.7263．Media inquiries: +886-2-8170-9888 ext.6523

CONTENT
About this report

01

Letter from the Chairman

04

Letter from the President

06

Sustainability strategy

08

Sustainable performancehighlights in 2020
Awards & recognition

10

05
01
02
03

04

5.1 Stewardship policy
5.2 Responsible investment
5.3 Results of responsible
investment

64
66
70

5.4 Engagement and voting
management

73

About Taiwan Life
Insurance
1.1 Strategy overview
1.2 Operating performance

15
16

06

Stakeholders andmateriality
2.1 Materiality analysis
2.2 Stakeholder communication
2.3 Quick COVID-19 response

10

Stewardship andresponsible investment

20
22
23

6.1 Talent recruitment
and cultivation

78

6.2 Employee rights andworkplace health84

Sustainable environmental
commitment
7.1 Green operation
7.2 Sustainable supply
chain

Transparency corporate
governance
3.1 Corporate governance andethical management30

3.2 Risk management
3.3 Information security
3.4 Legal compliance

35
42
45

Thoughtful customer
service
4.1 Treating customers fairly
4.2 Digital finance
4.3 ESG insurance products

07

Diverse talentdevelopment

50
55
58

92
97

08

Socialparticipation
8.1 Public welfare for the seniors
8.2 Other social care

102
109

Appendix

110

Diverse talent development appendix

110

List of association memberships

110

GRI Standards index

111

Corresponding SASB

114

Independent limited assurance report

116

2020 CONTENT

Letter from the Chairman

LETTER FROMTHE CHAIRMAN
2020 brought the world face to face with major challenges on many fronts. The pandemic forced the adoption of newmodes of thinking, compounded by the chain effects of climate change, the increasing shortage of natural resources, and the global problem of aging populations. Even as the profits of Taiwan Life again reached new highs, we

maintained our focus on using our corporate strengths to help Taiwanese society and to drive the global economy
toward a more sustainable future.

We are committed to making Taiwan Life an insurance company that customers can trust throughout their lifetimeand that operates with genuine sustainability. In doing so, we aim for this customer trust to be passed from one
generation to the next. We are working to realize our “Sustainable Trust, Enriched Future” vision based on theconcepts of co-creation and co-benefit and by implementing corporate sustainability in four major areas: “Ethical

Governance,” “Sustainable Finance,” “Accountable Operations,” and “An Inclusive Society.” As we work to enhance
corporate governance, maintain financial stability, promote environmental sustainability, improve employee welfare,develop inclusive finance, establish high-quality customer relationships, and engage with the community, every step
we take toward stronger ESG performance is taken to foster trust among our customers and the public and to drive
our sustainable operations, ultimately also raising our brand value.

In the past year, in addition to continually deepening our environmental sustainability and expanding our social
engagement, we also reached a new milestone in transparent governance. We have published a Responsible

Investment Report (which includes our Stewardship Report) and a Sustainable Insurance Report, all of which havebeen assured by an impartial third party. With Taiwan Life having voluntarily adopted the U.N. Principles for Responsible Investment and Principles for Sustainable Insurance, its Board of Directors has since adopted a Responsible
Investment Policy and a Sustainable Insurance Policy. Furthermore, to help implement the customer-centric andsustainability-targeted blueprint, both “Treating Customers Fairly” and “ESG / sustainable development” have been
listed as issues regularly tracked by the Board of Directors since 2020.

Meanwhile, the COVID-19 pandemic has accelerated the investment market’s move toward sustainable development, with global demand for sustainable finance also continuing to rise. This has tested our ability to manage

long-term risks and create value and has forced us to consider how companies like us can more effectively lead the
ESG transformation and how the trust of our customers can be harnessed to improve sustainability.

This is Taiwan Life’s first Sustainability Report. The publication process also gave us another opportunity tothoroughly review our various actions in ESG and their effectiveness, and as I always encourage my colleagues,

ESG must take root if it is to be done well. Taiwan Life has become one of the twin engines of profit for our parent
company, CTBC Financial Holding Co., Ltd. (CTBC Holding) and has written a new page in its history in terms of

profit in 2020. However, we know that as we pursue continued profitability, we must also implement ESG in each of
our core businesses and move forward as a benchmark company in sustainable insurance by echoing the U.N.
Sustainable Development Goals from the core competencies of the insurance industry. In the future, as for thesustainable development of Taiwan Life, we will adhere to our original intention, protect and create the value ofcustomers, employees, shareholders and communities, and jointly build a better future.

Taiwan Life Chairman
Su-Kuo Huang

042020 Sustainability Report05

Letter from the President

LETTER FROM
THE PRESIDENT
2020 may have been the most critical year yet since Taiwan Life and our parent company, CTBC Holding, joined

hands to prioritize environmental, social, and corporate governance (ESG). Guided by CTBC Holding’s sustainable
policy and under the leadership of Taiwan Life’s Board of Directors, we have had to face up to climate risks andopportunities, implement inclusive finance, build a sound social security network, and strategically carry out ourconcrete actions to push ourselves and the financial industry to make real strides toward sustainability.

In the face of increasingly serious climate change risks, we followed CTBC Holding in adopting the Task Force on

Climate-related Financial Disclosures (TCFD) recommendations in order to respond to the possible impact of climatechange on the Company’s operation as early as possible. We are also seizing the opportunities posed by the low-car-bon transition; in addition to formulating responsible investment policies and operating guidelines and integrating ESG
into our investment analysis and decision-making process, we are supporting the government’s Green Finance Action
Plan 2.0 policy and are continuing to promote sustainable investment, our cumulative approved amount of whichreached NT$42.5 billion in 2020. Looking ahead, we will continue to refine the responsible investment process anddevelop ESG-related evaluation tools to facilitate our long-term investment in sustainability.

In the community, we have long been concerned about the welfare of seniors, to which end we promote “aging inplace” and “active aging” with a view to building an age-friendly society. In line with the core spirit of insurance and insupport of inclusive finance, we continued to provide care for vulnerable families in 2020 through the promotion of

micro-insurance and small-amount whole life insurance, again achieving remarkable results and even earning fiveawards in the Financial Supervisory Commission’s Insurance Competition. Furthermore, to further realize financial

inclusion, we have launched a number of innovative products, such as insurance policy for people with pre-existing

conditions "hepatitis B carriers," and spillover-effect products for people with pre-existing conditions "diabetes," thus

providing practical, high-quality protection for them. 2020 also saw Taiwan Life recognized for our extensive efforts indeveloping diverse digital financial services to improve the customer service experience. This recognition included theDigital Insurer of the Year, Taiwan and Best Digital Insurance Experience, Taiwan awards from The
The Asset
Asset magazine.

In terms of the environment, most fundamental in 2020 was the continuing improvement of our environmental management system (ISO 14001), energy management system (ISO 50001), and greenhouse gas inventory (ISO 14064-1).
Meanwhile, for our build–operate–transfer project for the Cultural and Creative Industries Hall in Kaohsiung Main
Public Library, we used building information modeling to adjust the construction process, improve efficiency, andgreatly reduce the project’s environmental impact. We also won the top prizes in the “planning and design category”
and the “construction quality category” at the National Golden Awards for Architecture.

Taiwan Life is continuing to gather pace as it moves forward on the road to sustainable development. Guided by the
U.N. Sustainable Development Goals and with the knowledge that to go far, we must go together - no one is an
outsider on the road to sustainable development, and every individual, company, and organization is part of thecommunity of shared life. We will continue encouraging our employees, suppliers, customers, investors, and community partners to join us on this journey and to jointly create and achieve a sustainable vision for the future.

Taiwan Life President
Tony Chuang

062020 Sustainability Report07• In response to the risk of climate change, we adopted the Task Force on
Climate-related Financial Disclosures recommendations.
• CTBC Insurance has launched insurance products related to climate change tohelp customers address climate risks.

Transparent
disclosures• We voluntarily follow the Principles for Sustainable Insurance andpublished a Sustainable Insurance Report.

Information
security• We have ISO 27001 Information Security Management
System and BS 10012 Personal Information Management
System certification.

Sustainable
Finance
E
C
N
A
N
R
VE
O
G
L

A

N
S

E

C

N

A

IC

Digitalinnovation• We have launched a variety of convenient claims
services, with our eClaim blockchain service winningseven awards.

FI

H• We have established a dedicated Treating Customers
Fairly unit, launched a competition for TCF-related
proposals, and sought to internalize the TCF
principles into our company DNA.

LEET

Treating
Customers
Fairly

B
AT
I
R
N
U
O
C
A

C

TY

IE

C

TA

SO

B

LE

VE

SI

O

LU

PE

C

• We encourage the public to begin
retirement planning as early as
possible, to which end we havecooperated with National Chengchi
University for five consecutive years to
conduct a survey on retirement
attitudes and practices in Taiwan.

• We vigorously promote micro-insurance, so far with a
total insured amount of NT$35.05 billion and morethan 160,000 insured.
• We offer health promotion insurance products such asa hepatitis B insurance policy and diabetes spillover-effect insurance policy.
• In support of a government policy, we have launchedfive investment-linked ESG-related products, raising
approximately NT$6 billion.

A

IN

External
initiatives

Sustainableproducts

IN

Sustainable Trust,
Enriched FutureN• We worked with partners to launch amobile bathing service for seniors andpeople with a disability.
• We launched a “medical companion
service” for seniors who live alone andencouraged the public to record video
messages for such seniors.
• To promote active aging, we have helda series of intergenerational activities
for nine consecutive years.
• To foster co-creation by young people
and seniors, the Stanford Center onLongevity Design Challenge Asia has
been held for four consecutive years.

wastewater per day upon completion.
• We have invested in two solar power projects and one
offshore wind power project.
• Our land development project in Taipei City’s Nangang
District has received a Gold EEWH Green Building
Candidate Certificate.
• The total amount of our green investment andfinancing approved has reached NT$32.687 billion.
• We voluntarily follow the Principles for Responsible
Investment (PRI), established a Responsible
Investment Policy, and published the Taiwan industry’s
first assured Responsible Investment Report, which
included our Stewardship Report.

A
ST

Publicwelfare forseniors

Responsible • We have invested in a wastewater treatment plant thatis expected to be able to treat up to 31,000 tons ofinvestment

SU

EthicalGovernanceA

Taiwan Life voluntarily follows the Principles for Responsible Investment (PRI) and
Principles for Sustainable Insurance (PSI), and leverages the advantages andresources of its core businesses to implement ESG. We integrate global bestpractices at a local level to create long-term benefits for our policyholders,
employees, shareholders, investors, and community, and actively support
government ESG initiatives to leverage and expand our influence.
We are also guided by “TRUST,” the long-standing sustainability commitment of
CTBC Holding that comprises corporate governance (Transparency), environmental sustainability (Responsibility), employee welfare (Understanding), customer
service (Satisfaction), and community engagement (Together).
As an insurance company, earning and maintaining the trust of customers is ourultimate pursuit. With Taiwan to become a super-aged society in the next few
years, the insurance industry will need to adapt to the reality that we will carry thetrust of our customers for nearly a hundred years. Through our various sustainability-oriented actions, we hope for our customers to feel at ease and continue totrust us. Adhering to customer-centric principle with sustainability as the ultimate
goal, we have coined a “Sustainable Trust, Enriched Future” vision. This blueprint
approaches sustainable development from four strategic directions, namely“Ethical Governance,” “Sustainable Finance,” “Accountable Operations,” and “An
Inclusive Society.” In addition to cataloguing sustainability-related issues that theCompany should continue to focus on and develop, we strive to achieve 17 U.N.
Sustainable Development Goals and stay current with global changes insustainable development.
In order to more actively implement corporate sustainability management, CTBC
Holding’s Sustainability Committee was upgraded to a functional committee in
2020. All members of the committee are independent directors (i.e., four fromCTBC Holding and one from Taiwan Life) and it regularly reports to CTBC
Holding’s Board of Directors on the group’s sustainability strategy and annual
results. Under the guidance of the Board of Directors, Taiwan Life formulates
relevant policies and reports the sustainable results and action plan of thecompany at the senior management meeting on a quarterly basis.
Moving forward, ESG-related progress and performance will also be reported to
Taiwan Life’s Board of Directors every year, and external experts will be invited tocontinually conduct research on ESG performance trends, conduct industry gap
analysis, and propose specific suggestions for more sustainable operations.
Furthermore, in 2021, the sustainable business indicators of enterprises will beformally included in the management by objectives (MBO) of senior executives atand above the group head level in order to expand the influence of ESG.

Risk
management

N

Sustainability strategy• We hold ethical management and anti-money laundering education and training,with a training rate of 100%.
• We constantly work to elevate the professionalism of the Board of Directors, with
the number of hours of directors’ continuing education exceeding the statutory
standard.

O

SDGs

Ethicalmanagement

Accountable
Operations

An
Inclusive
SocietyGreen
operations• The amount of our green procurement is NT$220 million, with local
procurement accounting for 99.7%.
• We require suppliers to sign a Supplier Human Rights and Environmental Sustainability Commitment.

• We promote a healthy workplace, provide free health examination benefits
Employeefor employees, and have held more than 250 workplace health activities.
commitments• A total of 19,100 of our employees, directors, and supervisors haveparticipated in ESG-related courses.
• We have policies in place to ensure fair remuneration and equal-opportunity
employment.

2020 Sustainability Report

09AWARDS &RECOGNITION
Sustainable performancehighlights in 2020

Fintech and digital innovation

International Data Corp.
Financial Insights Innovation Awards
20 Best Insurers in Asia PacificInternational Data Corp.
DX Awards
Omni-Experience Innovator

The Asset
Asian Banking & Finance
Triple A Digital Awards
Insurance Asia Awards
Digital Insurer of the Year, Taiwan
New Insurance Product of the Year, Taiwan
Best Digital Insurance Experience, Taiwan
Claims Initiative of the Year, Taiwan

Brand value

Corporate
governance

Environmental

SocialNet income after tax

Supplier commitments

Micro-insurance assistance

NT$16.53 billion

With excellent investment income and operating performance, the net
income after tax in 2020 reached NT$16.53 billion, with annual growthof 26%, recording a historical high.

Board meeting attendance

We have a sustainable supply chain strategy, as part of which we
require all suppliers to sign a Supplier Human Rights and Environmental Sustainability Commitment and take actions regarding environmental protection, occupational health and safety, labor human rights, andother issues.

100%

Social inclusion
Taiwan Corporate
Sustainability Awards

Financial Supervisory Commission
2020 Insurance Competition

Taiwan Institute for Sustainable Energy
Taiwan Corporate Sustainability Awards
Gold Award for Social Inclusion

Micro Insurance Contest Insurance
Company Category-No.2
Micro Insurance Contest Sprint Award
Micro Insurance Contest Excellent
Performance Award
Micro Insurance Contest Caring for the
Physically and Mentally Challenged Award
Small-amount Whole Life Insurance
Excellent Performance Award

As part of our efforts to realize financial inclusion and provide basic
security for Taiwanese people, we have launched six micro-insurance
policies that have so far benefited 49,847 people.

Inclusive financial products

98.8%

15

Reflecting strong corporate governance,
the average attendance rate of the Boardof Directors was 98.8%; furthermore, thenumber of seats filled by independent
directors was better than the standard set
by the competent authority, and the
maximum terms of office is three.

PSI and PRI compliance

PRODUCTS

To put financial inclusion at the core of our insurance business, wehave developed 15 financial inclusion policies, which so far have a
total sales volume of 11,976.

Green procurement

PSI/PRI compliance

Customer satisfaction

97%

We have voluntarily adopted the U.N. Principles for Sustainable
Insurance and Principles for Responsible Investment, and become thefirst Taiwanese insurance company to both issue an assured
Sustainable Insurance Report and Responsible Investment Report(which included a Stewardship Report).

Global Brands Magazine
Global Brands Awards
Best Life Insurance Brand, Taiwan

49,847people

To understand customer needs andprovide services that more closely
meet them, monthly and annual
customer satisfaction surveys are
conducted, with an averagesatisfaction rate of 97%.

Real estate development
Sustainable investments

NT$42.5 billion

We actively invest in sustainable investment targets at home andabroad, with an accumulated approved investment amount of
NT$42.5 billion over the years, and support sustainable financedevelopment with practical actions.

NT$220 million

Our annual green procurement exceeded NT$220 million and we held
an annual supplier conference, holding discussions with suppliers onbuilding a more sustainable supply chain.

0ZERO DISASTERS
AND ZERO ACCIDENTS
We require real estate developers to strictly
implement occupational health and safety controls.

Responsible investment

The Asset
Triple A Infrastructure Awards
Investor of the Year- Insurance
Company, Asia PacificGreen Project of the Year, Asia PacificGreen Project of the Year, Taiwan

The Asset
Triple A Sustainable Investing Awards for
Institutional Investor, ETF, and Asset
Servicing Providers
ESG Investor of the Year for Insurers,
Taiwan,Insurance Investor of the Year, Taiwan
Editors' Triple Star

2020 Sustainability Report

11

01

About Taiwan
Life Insurance

Founded in 1947, Taiwan Life is the country’s oldest insurer. With asustainability vision of “Sustainable Trust, Enriched Future,” we arecommitted to fostering real trust with all of our stakeholders. In our
two major core business areas of investment and insurance, wehave introduced the Principles for Responsible Investment (PRI) and
the Principles for Sustainable Insurance (PSI), respectively. With abusiness philosophy characterized by responsibility, we strive for
perfection in our environmental, social, and corporate governanceand are determined to build sustainable value.

12

13About Taiwan Life Insurance

Taiwan Life is committed to offering a full range of insurance services to our customers. As such, we closely

innovation, we connect

monitor changes in the market so that we can ensure sound operational performance through flexible andpoint-to-point services tocreative product strategies. This enables us to provide the public a comprehensive safety net for their health,continually improve ourwealth, and protection while maintaining our long-term profitability, thus delivering favorable outcomes for our

existing services and create

Company and our customers alike.

distinctive new ones in order

We are increasingly using fintech to better realize our customer-centric approach, with our end-to-end

to create the most meaningful

digitalization lab, EdgE, setting new industry precedents in this regard. By developing numerous digital financial

customer experience.

tools, the lab has established a foundation for the digital transformation of our business, in particular by providing

Moving forward, Taiwan Lifecustomers with faster, more comprehensive services.

will continue to uphold CTBCIn terms of insurance

Holding’s “We are family”

products, we actively
protection-oriented
products; launch
insurance policies forpeople with pre-existing
conditions, policies forpeople with physical andmental disabilities, andspillover-effect healthCompany name
Establishment
Industry category
Location of headquarters
Number of employees
AssetsLiabilities
Owners' equity
Capital adequacy ratio

Country

Total number of sites

Operating sites

Taiwan133

8 branches, 13 regional centers, 111
correspondence offices, and 1 telemarketing
center.

China

1

1 representative office (Beijing)brand spirit and brand values

Basic information

develop innovative

Operation distributionof care, professionalism, and trust. We will work hand in hand with our affiliates across the group to provide more

Taiwan Life Insurance Co., Ltd.
1947
Insurance
8/F, No. 188, Jingmao 2nd Rd., Nangang Dist., Taipei
Internal personnel: 1,862 External sales agents: 7,539
NT$2,067,930,142 thousand
NT$1,929,302,330 thousand
NT$138,627,812 thousand
309.41%thoughtful financial services and innovative products in order to cement our status as Taiwan’s most trusted
insurer. In addition, we will adhere to the principles of professional, ethical, and stable operations; pay long-term
attention to social inequalities; actively support public welfare efforts; and prioritize environmental sustainability,
corporate governance, and risk control in order to fulfill our duty to protect and build wealth.
1.1 Strategy overview

Taiwan-based companies are expected to adopt International Financial Reporting Standards 17 (IFRS 17) andInsurance Capital Standard Version 2.0 (ICS 2.0) for their financial statements and supervisory reports by 2026. Inpromotion policies;

2020, the competent authority implemented three major regulatory policies, namely lowering policy reserve rates,

promote the evolution

increasing product protection components, and adding credit rating restrictions on targets of investment-linked

of insurance; and strive to provide the strongest possible social safety protection network. In addition, we also

products, leading to an increase in the sales of protection-oriented products. The overall first-year premiums

develop ESG-focused investment-linked products to provide customers with more choices and open up new

across the life insurance industry declined by 30% due to the fall in sales of savings-oriented and investment-

business opportunities. In the future, we will continue to develop financial inclusion insurance products, help

linked products. Although short-term sales have been impacted, this is beneficial for the long-term operation

disadvantaged people, and provide medical care for seniors, so that customers of different ages and groups canof the life insurance industry because the product portfolio is becoming more value-focused. In addition, thebe properly protected.

competent authority is paying greater attention to ESG-related issues—including by promoting Corporate

In terms of service, Taiwan Life deeply analyzes the entire insurance policy life cycle, identifying all pain points

Governance 3.0 - Sustainable Development Roadmap and the Green Finance Action Plan 2.0 Policy—to raise

faced by customers in every scenario before, during, and after insurance policy purchase. Through digitalawareness of corporate sustainable development across the life insurance industry.
In order to adopt IFRS 17 and ICS 2.0,

2011
Acquisition of
MetLifeTaiwan Life is already transforming its

2015

product sales, optimizing its productMerger andacquisitionof Manulife

Merger andacquisitionof Taiwan Life

Merger of CTBC
Life Insurance
and Taiwan Life

CTBC Life Insurance
acquired Manulife toincrease its sales
force.

CTBC Holding andTaiwan Life
completed a stock
swap, and Taiwan
Life became asubsidiary.

The Taiwan Life
brand was retained.

structures, strengthening its capital,
and returning its focus to the sale ofprotection-oriented, accident andhealth insurance, and investment-linked

CTBC Holding
acquired MetLife
and renamed it
CTBC Life
Insurance.

products in order to ensure strong andsteady profitability. In 2020, we set
four major transformation directions,continued to enhance our businessconstitution, and moved further toward
our goal of becoming the insurer with the

2014

14

2016

soundest financial position and the best
customer experience.

2020 Sustainability Report15About Taiwan Life Insurance

Four transformation directions: Becoming the insurer with the soundest financial position and the best customer
experience
Business andinvestment
Formulate appropriate
strategies for business andinvestment.

Customer
serviceexperience
Implement a customer-centric strategy, use digital
tools to integrate sales andservices, create intelligent
operations, and provide atangibly better and more
professional service
experience.

Information
technology
Continue to strengthen theconstruction of information
technology infrastructure,
to serve as the foundationfor our digital transformation.

Talentdevelopment
Optimize talent cultivation,internalize Treating
Customers Fairly and ESG
into employees’ DNA, anddevelop a customer-centriccompany culture.

1.2 Operating performance

Management approach for material topic: Operating performance

Policy andcommitment

In response to adoption of IFRS17 and ICS 2.0 in 2026 and the increasing attention paid by the competent authority to ESG-related issues, we will continue to enhance our business constitution and movetoward becoming the insurer with the soundest financial position and the best customer experience.

of NT$105.1 billion from 2019, with a compound annual growth rate of 13% over the past five years. Even withpremiums generally declining across the market in 2020, our first-year premiums reached NT$89.6 billion in 2020,
ranking fourth largest in the industry and growing 8% from 2019, with the first-year premiums of investment-linked
products growing by 103% from 2019. In 2020, total premiums were NT$208.9 billion, ranking sixth largest in theindustry.
Financial information over the years

Unit: NT$ thousand

2020

2019

2018

Total assets

2,067,930,142

1,962,867,494

1,768,274,602

Operating income

284,198,809

302,796,784

346,619,863

Net profit

16,533,596

13,109,087

8,297,625

Return on assets

0.85%

0.73%

0.53%

Return on equity

12.90%

14.32%

11.27%

Capital adequacy ratio

309.41%

298.30%267.70%Note: Return on assets and return on equity are disclosed based on the Company’s stand-alone financial information.

Tax governance■Specificactions■■

TargetFocus on the sale of protection-oriented and investment-linked products:- Protection-oriented products: Prioritize the research and development of protection-oriented andaccident and health insurance products, particularly spillover-effect insurance for people with pre-existing conditions (e.g., diabetes or linking with cancer genetic testing), in order to meet customers’ asset
inheritance and health protection needs.
- Investment-linked products: Launch new types of discretionary investment-linked products that arelinked with investment volatility management, and assist policyholders to control their investment risk.
In addition, to promote the development of sustainable finance, we will propose ESG-related discretionary investments.
Strengthen asset and liability management, continue to implement IFRS 17 and ICS 2.0 adoption
related work, conduct scenario simulation and testing, and optimize the suitable business andinvestment strategy.
Promote the corporate sustainable development from the inside to the outside. We make “customer
centric” our DNA, connect and integrate sales and services through digital technology, provide aperceivably better professional service experience.

Taxation plays an important role in achieving the SDGs and is a key mechanism for organizations to contribute to
the economies where they operate. As such, Taiwan Life’s tax governance policies are formulated specifically to
uphold the spirit of our Sustainable Insurance Policy and contribute to sustainable development.
Our tax strategy is to act in accordance with the requirements of all relevant tax laws and regulations. In addition
to complying with these laws and regulations, effectively managing our tax risks, fulfilling our tax responsibilities,
and supporting global economic development, we are almost committed to constantly enhancing thetransparency of our tax-related disclosures. We do so both in response to the growing global focus on anti-tax
avoidance as well as to foster effective corporate governance, achieve the SDGs, and fulfill our corporate social
responsibilities.

Continue to expand our sources of stable profit and improve customer satisfaction as we prepare to adopt
new international standards.

Due to the impact of the COVID-19 pandemic, the capital market experienced significant turbulence in 2020.
Taiwan Life seized the growth opportunities that this posed and reported consolidated after-tax incomeof NT$16.53 billion, up 26% from 2019 and a record high. We are among the industry leaders in terms of
performance, namely return on equity and return on assets. Total assets reached NT$2.07 trillion, an increase

16

2020 Sustainability Report

17

02

Stakeholders
andmateriality

Through the five major steps of materiality analysis, Taiwan Lifeidentifies and reviews issues related to sustainable operations andthen proposes corresponding management approaches. In terms of
stakeholder engagement, we have multiple communication channels
in place and regularly survey the issues of concern among internaland external stakeholders.

Stakeholders and materiality

2.1 Materiality analysis
We identify stakeholders and conduct materiality analysis according to the four GRI reporting principles of
stakeholder inclusiveness, sustainability context, materiality, and completeness. We respond to stakeholders
by establishing sustainable operation strategies and objectives, strengthening our sustainable actions, andpromoting the continual improvement of such policies and practices by working with various departments acrossthe Company.
Materiality analysis procedure

Value chain and material topics
For each of the 11 material topics, Taiwan Life assesses its influence on the value chain, aligns them withcorresponding GRI Standards topics, and discloses them in this report and the Company’s official website.

Value chain influence boundaries

Concerns

01

02

Identify
stakeholders

Collect sustainability
issuesIn accordance with the AA
1000 Stakeholder
Engagement Standards
and taking into accountthe importance of our
stakeholders, weestablished sevencategories of
stakeholders that Taiwan
Life prioritizes
communicating with,
namely employees,
policyholders, suppliers orcontractors, investment
subjects, government,
shareholders, and thecommunity and partners(e.g., media, academic
institutions, NGOs, andnonprofits).

Nineteen sustainability
issues related to Taiwan
Life were identified byanalyzing the data
sources of global
sustainability standards,
industry benchmarks,
and Taiwan Life
development goals.

03

04

Investigate
issues of concern
and operational
impact05

According to the sevencategories of
stakeholders identified,an annual questionnaire
was issued tounderstand thesustainability issues ofconcern among
stakeholders. A total of
475 valid questionnaires
were collected in 2020 as
the foundation for our“stakeholder concern”
analysis. Furthermore,“operational impact” wasidentified by evaluating
our internal senior
management on theissues.

Business
performance

Establish
management
approaches for
specific topics

Identify material
topics
According to the analysis
results in Step 3, thematerial topics matrix of
Taiwan Life was created.
After discussion withsenior management andinput from external
experts, we identified 11
material topics and 8
potential topics.

The 11 material topics
selected were matchedwith 11 specific topics
from the GRI Standards,
and in accordance withthe reporting
requirements andmanagement approachfor each specific topic,
sustainable information
was collected anddisclosed to respond to
stakeholders’expectations.

Corporate
GovernanceHigh

Corporate governance andethical management
Fintech applications
Affordable and accessible
products and services

Regulatory compliance andresponse
Operating performance

Level of stakeholder concern

Epidemic response
Employee rights andbenefits

Public welfare participation

Insurance product development

Integrated risk
management

Information security
and customer privacy

Customer rights
maintenance andservice quality

Talent recruitment and cultivation
Workplace health and safety

SocietyLow

Key issue

Material issue

Level of operational impact

Note: This is Taiwan Life’s first Sustainability Report, so there have been no changes to our material topics.

20

High

Impact through Taiwan Life’s
business activity
Policyholder

GRI 201：
Economic
Performance

Supplier /Contractor

Management
approach andresponse

Indirect impact on Taiwan Life
Investment Government Shareholder Community
subject
and partner

Chapter 1
About Taiwan
Life Insurance
3.2
Risk
management
3.1
Corporate
governanceand ethicalmanagement

Integrated risk
management

Other Material
Topics3.2
Riskmanagement

Information
security andcustomer
privacyGRI 418:
CustomerPrivacy

3.3
Information
security

GRI 307:
Environmental
Compliance
GRI 419:
Socioeconomic
Compliance

3.4
Legal
compliance

Fintechapplications

Other Material
Topics

4.2
Digitalfinance

Responsible
investment
and financing

Other Material
Topics*

Chapter 5
Stewardship
andresponsible
investment

Epidemic
response

Other Material
Topics

2.3
Quick
COVID-19
response

Chapter 4
Thoughtful
customer
service

Affordable andaccessible
products andservices

Other Material
Topics*4.3
ESG insurance
products

Employeerights andbenefits

GRI 401:
Employment
GRI 405: Diversity
and Equal
Opportunity
GRI 406:
Non-discrimination

6.
Diversetalentdevelopment

Sustainable supply chain management
Environmental care and initiatives

Direct impact
on Taiwan Life

External

GRI 416:
Customer
Customerrightsmaintenance Health and Safety
GRI 417:and service
Marketingqualityand LabelingResponsible investment and financing

Climate risk management

GRI topics/
other material
topicsGRI 205：
CorporateAnti-corruption
governance
GRI 206：
and ethicalmanagement Anti-competitive
Behavior

Regulatorycompliance

Material topic analysis results

Green operation

Material
topic

Internal

Note: *Consideration of GRI G4 supplementary guidelines on financial services.

2020 Sustainability Report

21

Stakeholders and materiality

2.2 Stakeholder communication
We have identified seven major stakeholders based on the AA1000 Stakeholder Engagement Standard and havecommunication channels in place to accept and respond to stakeholders’ expectations. We adhere to the spirit oftransparency and openness, disclose information through multiple channels, and ensure effective communication
with our stakeholders. We collect issues that come up in the course of such communication and incorporate
them into the Company’s sustainable development operation and promotion strategies in order to improve oursustainable operation efforts and disclose them in a timely manner in our Sustainability Reports.

2.3 Quick COVID-19 response
Management approach for material topic: Epidemic response

Policy andcommitment

In order to prevent the outbreak of major infectious diseases from endangering the health of employees and affecting the Company’s business
operation, the Contingency Plan for Major Infectious Disease Incidents is formulated for the Company and its branches, subsidiaries andoverseas branches to follow.

■

Specificactions

Communication channel and response method for stakeholders

Stakeholders

Employees

・Employee learning development
・Remuneration
・Welfare and health promotion
・Employee rights and benefits

Communication channels
and frequency
・Labor-management meetings / quarterly・Mobilization meetings / quarterly・Digital learning platform / as needed
・Health lectures / as needed・Complaint hotline and email inbox / anytime
・Good news by A-Long / monthly

・Product and service information
・Customer satisfaction

Suppliers/contractors

・Sustainable supply chain
management

・Supplier meetings / annually
・On-site health and safety audits / as needed・Business talks and price negotiation meetings / as needed

Investment subjects

・Environmental protection
・Social issues
・Corporate governance・Company visits / as needed
・Telephone interviews / as needed・Online meetings / as needed・Participate in shareholders and board meetings of specificinvestment subjects / as needed・Performance management committee meetings / as needed

・Corporate governance
・Board of Directors meeting matters
・Legal compliance・Consultation on the enactment oflaws and regulations
・Advocacy on laws and regulations

・Corporate governance and compliance related seminars,
summits, and courses / as needed・Board meeting minutes / monthly
・Follow up on changes to laws and regulations / monthly

・Corporate governance
・Board of Directors meeting matters

・Supervisor meetings / monthly

・Public welfare for seniors
・Social impact
・Promotion of intergenerational
co-creation and inclusion
・Corporate volunteers

・Public welfare sponsorship and activities for the elderly /at least one event per year
・Volunteer activities / at least 2 events per year

・Industrial management
development trends
・Product and service information
・New knowledge of retirement
planning and risk transfer
・Aging trends

・Press conferences / as needed・Press releases / as needed・Internet news platform / as needed・Conference forums / as needed

・Retirement trends

・Market survey press conferences / annually

Government

The community and partners

Shareholders

NGOs/nonprofits

Media
Academiccooperation unit■■

・Official website / anytime
・Official Facebook page / daily post
・Electronic reports for the insured / monthly
・Press releases / once or twice per month・Lectures/forums / as needed
・Seminars on retirement-related issues / annually・0800 customer service hotline / 365 days a year
・Official LINE account / as needed

Policyholders

22

Communication topics■

Set up a pandemic control and response team to plan and improve pandemic prevention mechanisms.
Establish a notification mechanism for pandemic-related information and implement on-site management to limit physical interaction.
Implement related measures including dispersing staff among additional off-site workspaces, working from home, and staggered working
hours.
Institute pandemic prevention leave (with full pay given, exceeding legal requirements), quarantine leave, and pandemic prevention care leave.

Short term:
Pay close attention to pandemic-related developments and maintain close contact with the parent company’s pandemic control andresponse team.

■Targets

Medium and long term:
Implement necessary emergency drill measures.

■

In 2020, as COVID-19 began to spread, large-scale pandemic prevention measures were adopted globally. This
included at Taiwan Life, where we quickly launched disease prevention mechanisms. In February 2020, we set
up an internal “epidemic command center”. Through the cooperation of various units, we adopted a series of
emergency measures, such as to ensure the health of staff and customers. We also offered continuous care forsocial welfare organizations and long-term care workers affected by the pandemic.
With the effects of COVID-19 still being felt, we will continue to pay close attention to pandemic-related
developments and work with CTBC Holding’s pandemic response team to implement effective epidemic
prevention measures and hold related emergency drills.
Contingency plan for serious infectious disease incidents
In order to avoid a serious infectious disease from endangering employees’ health or affecting its business
operation, Taiwan Life has formulated a Contingency Plan for Major Infectious Disease Incidents for the Company
and its branches, subsidiaries, and overseas branches. We have also set up an epidemic command center tomonitor the global pandemic and related regulations; formulate disease prevention contingency policies; dispatch
epidemic prevention resources, equipment, and manpower; promote internal epidemic prevention measures; andcoordinate the Company’s efforts with those of competent authorities.
Organizational structure of the epidemic command center
Convener of Taiwan Life
Epidemic Command Center
President
Insurance Bureau(group for heads of epidemic
prevention of life insurancecompanies)

CTBC Holding(COVID-19 Prevention
Working Group)(Taiwan Life Epidemic
Command Center Group)

Head of Risk
Management
Dept.
Operational risk anduninterrupted operation

Coordinated tracking management

Reporting backContact window of China operations

King Dragon
Life

Head of Administration
Division

Beijing
representative

Head of Human Resources Dept.
Head of General Affairs Dept.
Head of Information Dept.

Contact window of parent company

Telemarketing
service

Branches

Convener of CTBC
Insurance epidemic
command center

Convener of CTBC
Finance epidemic
command center

Reporting backContact windows of subsidiaries

Administration

2020 Sustainability Report

23

Stakeholders and materiality

The President of Taiwan Life serves as the convener of the epidemic command center, and each businessdivision communicates via the epidemic prevention notification window for relevant updates from all units. If a
COVID-19 case occurs in the Company, related information must be immediately collected and reported to theepidemic command center, with follow-up investigations carried out according to the serious infectious disease
notification procedures in order to facilitate appropriate case tracking and handling.
To ensure business continuity, Taiwan Life receives professional support in providing disease prevention
materials and health care for infected colleagues as well as to implement backup IT systems, maintain network
bandwidth, and other measures.

Customer care services

Claim application■■

Epidemic prevention emergency measures
1. Helping staff stay healthy
During the COVID-19 pandemic, employees have been the primary concern of the Company. We haveproactively raised awareness of COVID-19 health-related matters, including that employees with a hightemperature should stay home and seek medical treatment as soon as possible. We have also issued guidancefor employees regarding overseas travel and self-management, established a pandemic-related notification
mechanism for employees, and implemented on-site management measures to limit physical interaction. In 2021,
when COVID-19 cases in Taiwan increased for a period and the government raised the epidemic alert level, we
significantly increased the proportion of employees working from home in order to minimize the flow of personnel
and to effectively reduce the spread of the disease without interrupting our operations.

■■

Advance payment of
hospitalization insurance

Others■■■Deferred renewal
premium

Digital claim service

Deferred payment of loan principal andinterest or interest reduction

COVID-19 measures

Personnel management

Claim relaxation service

Premium payment

Deferred repayment of principal
and interest or preferential interest
reduction for mortgage■

Consolation for medical
personnel claims
Fast conservation service

Deferred repayment of interestor preferential interest reduction
for policy loan

Space/material management
Note: Taiwan Life has planned a comprehensive range of customer care services and measures that are implemented in stages according to the current epidemic severity.

Provide fully paid epidemic prevention leaveexceeding that required by law

Planning for off-site backup offices and working
from home

Monitor body temperatures daily and require
the wearing of masks

Reserve supplies of epidemic prevention-related
products in advance

Closely monitor confirmed cases among
Taiwan Life employees

Control large gatherings and activities

Visitor management

Strengthen the cleaning and disinfection of
offices

Epidemic prevention information awareness

Add warnings, partitions, and markings in
confined spaces

2. Maintaining thoughtful customer service
As COVID-19 emerged, Taiwan Life quickly set up an emergency response care group. It devised andlaunched a number of customer care measures, including consolation payments for medical personnel,
claim relaxation services, deferred premium payments, and deferred repayment of loan principal and interest
or interest reductions, echoing the relief measures outlined by the government. For hospitalization medical
products currently on the market, we introduced the Taiwan Life Notifiable Diseases Waiting Period Exemption
Endorsement to remove the 30-day waiting period restriction usually required for notifiable diseases, thus
ensuring policyholders can enjoy immediate health protection.
Furthermore, through our comprehensive digital financial services, such as online insurance, video-based survival
investigation, and online claim settlement tools, customers have been able to access insurance, underwriting,and claim settlement services safely and remotely. These reduce the need to travel to high-risk areas such as
medical institutions and household administration authorities for our customers and staff alike.

24

To accompany the public to protect their families and jointly fight against the threat of virus, in 2020 Taiwan Life
launched two insurance products to support epidemic prevention efforts. First, we launched “Taiwan Life covers(brightens) up your health – Taiwan Life coverage portfolio,” which allows customers to select insurance products
based on their individual needs and enjoy multiple forms of protection at the same time. The second product was
the “Taiwan Life Assured 365 One Year Term Hospitalization Insurance Plan.” With it, as long as the head of thefamily has the primary cover, other family members can apply for the rider, which simplifies the insurance process
and provides a lump-sum notifiable disease payout so patients can recover with ease (and without being subject
to the 30-day waiting period).
We have also launched the “Taiwan Life Group Notifiable Diseases Rider” group insurance policy. If an employee
or a family member is admitted to a negative pressure isolation room due to COVID-19 or another notifiabledisease, they are entitled to comprehensive protection in the form of negative pressure isolation ward daily
benefits, recuperation benefits, and a lump-sum notifiable disease benefit.
In terms of our underwriting service, on May 27, 2021, we announced that during times of level 3 restrictions,applications could be completed using video-based services in order to facilitate insurance purchases andreduce the risk of COVID-19 infections due to physical contact among staff and customers.
For claim settlement services, in order to avoid policyholders from having to venture out, Taiwan Life provides
four convenient channels for claim settlement applications, namely photo claim settlement, hospital connection,
convenience store claim settlement, and hospital advance payment. Furthermore, in order to meet the claimrelated needs of policyholders, we have made five changes to our compensation measures. First, we no longer
exclude notifiable diseases from health insurance. Second, we have cancelled the 30-day waiting period for
notifiable diseases. Third, patients admitted to a negative pressure isolation room are now entitled to the same2020 Sustainability Report25

Stakeholders and materiality

compensation as if admitted to an intensive care unit. Fourth, a diagnosed patient staying in a group quarantine
facility or quarantine hotel is treated the same as if staying in an ordinary ward. Fifth, when doctor’s orders
indicate that a patient cannot be admitted to hospital due to a lack of beds and needs to follow hospital outpatient
treatment, this is regarded as a hospitalization agreement and the relevant insurance benefits can be paid.
As for our real estate, we implement relief measures for affected tenants (e.g., hotels, retailers, and exhibition
companies), conduct on-site visits and inspections of their operating conditions, evaluate the status of these
affected tenants, and reduce or defer rent payments as appropriate. In 2020, we assisted 13 tenants in rent
reduction, with an average reduction rate of 20%–30%, and deferred rent payments in four cases, with anaverage deferral period of 3–6 months. We are also actively helping tenants to reduce their tax burden by helping
them apply for reduced housing tax rates andrefunding them the difference and give back therelevant tax burden reduced by the government to
the tenants. In 2020, we assisted two pandemicaffected hotel operators, closing some floors of
their buildings in order to apply for a reduction in
their housing tax rate.
As for our sales agents, in order to help them
maintain their relationship with policyholders, weprepared greeting cards with pandemic-related
advice and well wishes as well as a series ofdigital education resources to help the agents
continue providing uninterrupted service even
without physical meetings. In addition, we haveproposed the relaxation of a number of restrictions
and the introduction of related subsidies. The headof the epidemic command center and immediate
supervisors also reach out to agents to checkon their well-being and are on hand to provide
immediate assistance if necessary.
3. Continuous care for the underprivileged• Call for thanks for long-term care workers
Armed with only basic protective measures
such as masks and gloves, long-term care
workers were among the unsung heroes of thepandemic as they continued offering vital care
to seniors, including accompanying them tomedical appointments. To express our gratitude
for their efforts, Taiwan Life launched an online
video campaign calling on social welfareorganizations, enterprises, and the public tofollow suit. Within three days of being uploaded,
the campaign’s launch video had received
tens of thousands of views, and a total of 24
organizations joined us with thank-you videos of
their own.
•

26

Food Bank to launch a food package subscription initiative funded by donations by our staff. Within one month,
it had raised more than NT$1 million, helping 1,000 families.
•

Art and enterprises support each other and bolster the All U People Theatre
With arts and culture groups also severely affected by the pandemic, we acted to support the sector, including
stage performances by the All U People Theatre. We also invited more than 1,000 front-line medical workers
and long-term care workers to watch the troupe’s performances, which comprised seven shows acrossnorthern, central, and southern Taiwan.

Food packages to help 1,000 families
The effect of COVID-19 on the economy had an
outsized impact on economically marginalizedfamilies. As such, Taiwan Life worked with the
Chinese Christian Relief Association’s 1919

2020 Sustainability Report

27

03

EthicalGovernanceTransparent corporate
governance
Ethical management is a core Taiwan Life value. As part of this, weprioritize the diversity of Board directors, the experience of whom
spans various academic and industrial fields. In addition, thenumber of independent directors on the Board exceeds statutory
requirements. We have also set up a dedicated unit charged withpromoting ethical management and corporate governance. In 2020,
the ethical management education and training rate for all employees was 100%.
We have established sound risk management responsibility andcontrol mechanisms to identify climate change-related and otheremerging risks and to propose corresponding measures as soon as
possible in order to avoid interruptions to our operations.
In 2017, we obtained ISO 27001:2013 Information Security
Management System and BS 10012:2017 Personal Information
Management System certification, helping us further ensure
customer privacy and security by maintaining a rigorous information
security protection system.
From formulating guidelines to prevent conflicts of interest, conduct
in self-interest, and unethical conduct to integrating ESG inspection
lists into the internal control processes of our investment business,
we approach every aspect of our operation with the intention ofthoroughly fulfilling our corporate responsibility and cementing our
status as a trustworthy insurer.

Board meeting attendance of 98.8%
The annual Board of Directors meeting schedule wasestablished to focus on key proposals’ discussion. The
attendance rate of Board meetings reached 98.8% in
2020.

Active TCFD implementation
We followed our parent company in formally adopting theTask Force on Climate-related Financial Disclosures(TCFD) and reporting our results.

Excellent personal information
management

We received the Award for Excellence in Personal DataManagement from SGS, ranking among the top 1% ofperformers in personal data management.

Transparent corporate governance

3.1 Corporate governance and ethical management
Management approach for material topic: Corporate governance and ethical managementbusiness. In 2021, new elections for the boards of the Company and its subsidiaries are expected to be carriedout, and the results of the 2020 Board performance evaluations will be reviewed and corresponding improvement
measures identified.
In order to fulfill the functions of the Board of Directors, the Company holds a Board meeting every month. All

Policy andcommitment

In accordance with the Corporate Governance Best Practice Principles, the Ethical Corporate Management Best Practice Principles, and the Procedures for Ethical Management and Guidelines for Conduct,
we conduct our business in a fair, ethical, and transparent manner. We strive to improve our corporate
governance structure; continually optimize our implementation of ethical management; achieve theobjective of protecting the rights and interests of our shareholders, policyholders, and employees; andestablish a corporate culture of ethical management.
■■

Specificactions■■

Publish the Corporate Governance Monthly Bulletin to help directors to better understand and more
quickly comply with laws and regulations.
Work with the competent authority to support it Corporate Governance 3.0 – Sustainable Development
Roadmap.
The directors and senior management have declared that they will comply with ethical management
standards.
In 2020, annual ethical management education and training was conducted, with all directors,
managers, and employees completing it.

Short term:
Review and improve the Company’s ethical management according to the 2020 Board performance
evaluation results.
Continually update the contents of the directors’ performance manual and disclose the corporate
governance rules on the website.
Increase the annual training resources of directors and arrange more than 6 hours of annual training
courses.

■■

directors actively participate in the discussion, while business units are responsible for executing important
Board resolutions, the progress of which they track and report to the Board on a regular basis. In addition, anannual Board meeting schedule is established for routine proposals focusing on key motions in order to improve
decision-making efficiency. In 2020, the Board of Directors held 17 meetings, the overall director attendance rate
for which was 98.8%.
Board and functional committee meeting attendance
Board of Directors

Risk Management Committee

Audit Committee

17 meetings

11 meetings

17 meetings

Attendance rate: 98.8%

Attendance rate: 97.6%

Attendance rate: 100%

Independent directors: 45.5%

Independent directors: 100%

Independent directors: 100%

Board director skills and experience■

Targets

Medium and long term:
Strengthen the functions of the Board of Directors and functional committees.
Continue to optimize the official website in terms of corporate governance information, strengthen the
ethical management culture, and implement ethical management.
Improve the quality and quantity of directors’ related annual education.
Strengthen the continual communication between directors and management.

Professional knowledge and ability

Industry experience■■

Position

Name

GenderAgeChairman

Su-Kuo Huang

Male

65-75

Vice Chairman

Shu-Po Hsu

Male

55-65

Director

Mao-Lin Shih

Male

65-75

Director

L., Ting Dan

Male

65-75

DirectorChin-Miao Lin

Male

55-65

Director

Chu-Sheng Fu

Male

55-65

Independent director

Sin-Hui Yen

Male

55-65

Male

45-55

■

Commerce, law,finance, accounting,and other professional
knowledge1

Judges, prosecutors,
lawyers, accountants,
and other professional
certification2

Banking Insurance Securities■

In order to implement good corporate governance, Taiwan Life has established a dedicated unit forcorporate governance and ethical management, and appointed a corporate governance supervisor
according to law. We attach great importance to capital adequacy, asset quality, operation andmanagement ability, profitability, asset liquidity, and risk sensitivity, and we strictly adhere to the following six
principles:
1. Comply with laws and regulations and improve internal management.
2. Safeguard shareholders’ rights and interests.
3. Enhance Board functions.
4. Protect the rights and interests of policyholders and respect the rights and interests of stakeholders.
5. Maintain solvency.
6. Enhance information transparency.
Sound Board structure
In 2020, the Company’s Board of Directors comprised 11 directors, five of whom were independent directors—
more than required by law. Board members have a wide range of backgrounds in academia and industry, with
substantial legal, accounting, risk management, and practical experience. In 2020, five new directors came on

Independent director Ching-Chieh Lin
Independent director

Jun-Juy Lin

Male

55-65

Independent director

Jin-Lung Peng

Male

55-65

Independent director

Wen-Yen Hsu

Male

45-55

Note 1: This comprises positions as an instructor or higher positions in a department of commerce, law, finance, accounting, or other academic department related tobusiness in a public or private tertiary educational institution.
Note 2: This comprises positions as a judge, prosecutor, lawyer, certified public accountant, or other professional or technical specialist who has passed a national
examination and received certification in a profession related to business.
Note 3: Directors aged 45–55, 55–65, and 65–75 accounted for 18.18%, 54.55%, and 27.27% of directors, respectively.

board; all received a performance manual and business report to facilitate their familiarization with the Company’s

302020 Sustainability Report31Transparent corporate governanceAppointment of directors
The parent company of Taiwan Life, CTBC Holding, has formulated Operating Guidelines for the Appointment
of Directors and Supervisors of Subsidiaries. CTBC Holding’s Nomination Committee strictly reviews theprofessional competence of Taiwan Life Board members in order to foster a diverse and appropriately qualified
Board. In order to ensure the function and independence of independent directors, independent directors must

Symposiums for directors
In order to familiarize directors with developments in various business areas and establish smooth communication channels, the Company organizes
symposiums on important issues, holding each once or twice a year. The following were the key issues discussed in 2020:
Symposium for
new directors

01

Symposium on
TCF

02have rich academic and practical experience and may not serve more than three terms. Members of the Boardof Directors of Taiwan Life are not managers, and their composition is diverse in terms of academic background,professional skills, and industrial experience. To maintain the professionalism and experience of Board members,
CTBC Holding has established a director database in order to facilitate its succession planning as follows:
1. Seek suitable directors from various parties.
2. Refer to the talent database of independent directors.

The management team introduced
the Company’s business operations
to the directors to enhance theirunderstanding of its current
business status.

Staff from CTBC Bank were invited toshare the affiliate’s experience in TCF,
helping our directors to optimize
Taiwan Life’s TCF measures andincrease their awareness of theCompany’s implementation of TCF,
with the directors also invited to put
forward their own suggestions
regarding these efforts.

03

04

Symposium oncommunication
between CPAs andindependent directors

Symposium oninternal control andauditing

Independent directors, the heads of
Taiwan Life’s financial department
and accounting department, andCPAs were invited to discuss
audit-related matters.

Independent directors and the headsof the audit department andcorporate governance department
were invited to discuss mattersrelated to Taiwan Life’s internal
control system.

3. Ask the incumbent directors, appropriate external organizations, and consultants to propose suitable directors.
4. Reference the results of Board performance evaluations in determining whether to nominate Company directors
for re-election.
Continuing education for directors
To help directors continually improve their professional knowledge, Taiwan Life has specified the requirements
for directors’ continuing education hours in the Regulations Governing Board Performance Evaluations. In 2020,
all directors’ continuing education exceeded the six hours recommended by the competent authority. The
contents of this education included corporate governance practice development, enterprise intellectual property
management strategy, reflection and outlook for risk management and anti-money laundering controls, thelatest TCF developments in the financial industry, a brief introduction of the Financial Ombudsman Institution,
ombudsman case analysis of insurance review, and IFRS 17 education and training.
Furthermore, the Company published a Corporate Governance Monthly Bulletin to provide directors with relevant
news from the competent authority, new information on the interpretation of laws and regulations, notices of draft
laws and regulations, sanction cases, and other current events, assisting directors to keep abreast of the latest
laws and regulations.

Rules for director performance appraisals and remuneration policy
Taiwan Life has established an Audit Committee and Risk Management Committee, each comprised entirely of
independent Board members, and conducts performance evaluations of the committees every year. In 2020, theattendance rate of the Audit Committee was 100%, while that of the Risk Management Committee was 97.6%.
In order to improve the performance of the Board of Directors, the Company has formulated the Regulations
Governing Board Performance Evaluations. In addition to evaluating the overall operation of the Board of
Directors and functional committees, each director also conducts a self-evaluation. The 2020 evaluation results
have been submitted to the Board of Directors. For the items that do not reach the full score in the evaluation
results, feedback from the directors has been collected and further improvement measures discussed.
Our director remuneration policy is formulated based on two internal policies, namely the Non-Independent
Directors Remuneration Policy and the Independent Directors Remuneration Policy. Director remuneration isdetermined with reference to market remuneration survey data and financial industry standards. The relevanceof individuals to the Company's business performance and risk management is also taken into consideration byassessing their personal performance, the time they have invested in the Company, the responsibilities they haveundertaken, and their contributions to the achievement of the Company's short- and long-term business targets aswell as to the Company's financial position. Director remuneration is reviewed and approved by the Remuneration
Committee and the Board of Directors. The Company reviews its remuneration systems in due course according

Corporate Governance Monthly Bulletin
Taiwan Life publishes the Corporate Governance Monthly Bulletin to keep directors informed on relevantlaws and regulations, with bulletin content including:

1. government announcements;
2. information on new interpretations of laws and regulations and notices of draft laws and regulations;
3. sanction cases; and4. current events.

to business operations and relevant laws and regulations, and it endeavors to maintain a balance between
sustainable management and risk control.
Board of Directors and corporate governance guidelines
By recruiting diverse Board members, the Company is able to keep abreast of international financial andinsurance trends and changes in the business environment, comprehensively supervise the Company and its
subsidiaries, and devise timely response strategies. We work with the competent authority to support its Corporate
Governance 3.0 - Sustainable Development Roadmap, specifically by constantly revising relevant corporate
governance-related measures and procedures. In 2020, for example, we revised our Articles of Incorporation;
Standards for the Division of Authority of the Board of Directors, Chairman and President; Corporate GovernanceBest Practice Principles; Code of Corporate Social Responsibility; Code of Ethical Conduct; Procedures for
Ethical Management and Guidelines for Conduct; Regulations Governing Board Performance Evaluations;
Subsidiaries Management Guidelines; Non-Independent Directors Remuneration Policy; and Measures for theDivision of Authority for Approval on Capital Expenditure and Expense.

32

2020 Sustainability Report33Transparent corporate governance

Ethical management
We are deeply committed to ethical management, which we are striving to foster in our corporate culture by

3.2 Risk management
Management approach for material topic: Integrated risk management

placing integrity, transparency, and responsibility at the core of our self-evaluations and ethics requirements.
One way we do this is by holding annual ethical management anti-corruption education and training, which wasattended 9,910 times in 2020, with a companywide training rate of 100%. Furthermore, in 2020, neither Taiwan
Life nor any of its subsidiaries had any cases involving ethical management violations, nor did they receive any
report of illegal, immoral, or unethical conduct by a director, president, or manager or by senior personnel whose
duties are equivalent to or above the senior vice president level, or any major incidents or illegal cases foundthrough investigation.
The Company requires directors, managerial officers, employees, appointees, and persons authorized to manage

Policy andcommitment

Specificactions

the Company’s affairs and sign signatures on behalf of the Company to act in a fair, ethical, and transparent

For risk-bearing policies, changes in the political and economic environment must be clearly understood,
and all risks must be carefully considered from the whole Company’s perspective. In balancing risk andreward, various possible risks and their influence on capital requirements and capital allocation can beobjectively evaluated. Business activity should steady and reasonable and should not damage the value or
image of the enterprise.
Implement three defense lines for risk management.

■manner in the course of conducting business activities in accordance with the Ethical Corporate Management

Targets

Best Practice Principles, Procedures for Ethical Management and Guidelines for Conduct, and Procedures for■■

Handling Illegal and Unethical or Dishonest Behavior. In addition, they shall not directly or indirectly provide,

Improve internal risk management-related rules and regulations.
Appropriately evaluate the adequacy of reserves to minimize the impact of financial reporting.
Appropriately evaluate the monitoring indicators of assets and liabilities and reduce the impact of interest
rate fluctuations.

promise, request, or accept any improper benefits, or commit a breach of ethics, unlawful act, or breach offiduciary duty for the purpose of acquiring or maintaining an improper benefit for themselves. We have formulated
the Code of Conduct, Code of Ethical Conduct, and other regulations to prevent the occurrence of such acts
against ethical management. The implementation of such regulations is as follows:
1. The directors and senior management have signed the Statement of Compliance with Ethical Management.
2. Any director or manager who has an interest in a proposal made by the Board of Directors shall recuse
themself in accordance with the regulations.
3. The Chairman’s Office is responsible for coordinating all units to engage in ethical management. It issues an
Ethical Management Report to the Board of Directors every six months.
4. Annual ethical management education and training is organized for all employees and directors.
5. Donation and Sponsorship Regulations have been formulated. Any charitable donation, sponsorship, or
political contribution by the Company must comply with the measures.
6. New employees must read the Code of Conduct, sign the Statement of Commitment for Employee Conduct,
and agree to abide by all the regulations and fulfill their obligations.
7. We hold a supplier conference every year, to which we invite partners to attend and at which we remind themof their obligation to abide by relevant ethical management regulations. In accordance with the Company’s
Principles for Supplier Management, suppliers are required to sign a commitment to human rights andenvironmental sustainability when signing a contract with us.
Whistleblowing channel and whistleblower system
Our employee and corporate website each have a whistleblowing section, providing multiple channels to ensuresmooth, confidential reporting, including via phone, email, and post. Online forms designed to solicit the most
pertinent details are provided to facilitate and expedite reporting, and anonymous reports are accepted in order toprotect whistleblowers.
We have established Procedures for Handling Illegal and Unethical or Dishonest Behavior, designated theCompliance Department to receive reports, and established a special committee to investigate and rule on
the cases. The procedures clearly stipulate the confidentiality obligations of the personnel in the acceptanceand investigation units, and prohibit the implementation of any adverse treatment of whistleblowers. In 2019, a
mechanism allowing anonymous whistleblowing was explicitly included in the procedures to further deepen the
Company’s corporate governance.

34

Taiwan Life has built a sound risk management framework for identifying and controlling potential risk factors,
utilizing three lines of defense for risk management as well as forward-looking risk management policies. Internal
audits and controls are implemented so as to reduce the likelihood of uncontrollable risks and thus achieve thegoal of steady growth.
Risk management<SASB:FN-IN-550a.3>

We have formulated the Risk Governance Policy as the basis for the overall business risk management of theCompany and its subsidiaries. We regularly identify and evaluate potential risks such as market risk, credit risk,
liquidity risk, operational risk, asset–liability matching risk, and insurance risk. We identify the impact of suchrisks and their influence on our operations, implement management and control according to the risk assessment
results, and formulate relevant policies. In response to the impact of climate change, we expect to revise our Risk
Governance Policy in 2021 in order to strengthen the weight given to climate change when assessing various
types of risk to our business. The risk management unit of the Company shall regularly prepare a risk integration
report and submit it to Taiwan Life’s Board of Directors and internalmanagement as well as to CTBC Holding’s the Chief Risk Officer andrisk management unit, thus ensuring that those at all decision-making
levels can grasp relevant material risk-related information in a timely

Risk management organization structure
Board ofDirectors
Risk Management
Committee

manner.
Group risk appetite declaration

Chairman

1.Taiwan Life and its subsidiaries will bear identifiable and manageablerisk that fits the enterprise’s sustainable operating strategy.
For risk-bearing policies, changes in the political and economic
environment must be clearly understood, and all risks must be

President

Executive Meeting

carefully considered from the whole Company’s perspective. In
balancing risk and reward, various possible risks and their influenceon capital requirements and capital allocation can be objectively
evaluated.

RiskManagement
Department

Asset–Liability
Management Committee

2020 Sustainability Report35Transparent corporate governance2. The various risks borne by the Company and its subsidiaries will be stable and reasonable. Furthermore, suchrisks will not involve business that damages the value or image of the enterprise.
•

A balanced asset–liability structure will be maintained, and risk exposure overly focused on high-risk or single
targets will be avoided.

•

The blind entering into price-cutting competition or predatory loans will be avoided. Product-pricing strategies
phenomena will be avoided.
Business involving illegal organizations or terrorist activity is prohibited. No assistance will be provided
to customers engaging in illegal, extra-legal, fraudulent, whitewashing, tax-evasion, or money-laundering•transactions. Controversial business that may violate human rights (including labor rights) shall be avoided,and careful consideration should be given to business related to politics and military affairs. For customers
planning to engage in stakeholder transactions or unconventional arrangements, whether they are reasonable•

and legal will be examined.
The Board of Directors is the highest risk management decision-making unit of Taiwan Life. It is charged
with ensuring the effectiveness of risk management and is responsible for the final decision-making on risk
management. The Company’s Risk Management Committee is comprised entirely of independent directors andassists the Board of Directors in reviewing, supervising, and discussing various risk management-related matters.
The risk management unit of Taiwan Life is responsible for planning the Company’s risk management system,

Second line of defense

Third line of defense

Business units and support units

Compliance and risk management units

Audit unit••

and the selection of target customers will be carefully reviewed. The triggering of systematic risk or procyclical•First line of defense•

Formulate risk management policies,
methods, procedures, and other systems
and principles according to the Company’sbusiness strategy, compliance, reputation,and insurance business-related risk
identification and evaluations and based on
its business or management needs.
Confirm that all policies, methods, andprocedures are updated in a timely mannerin line with laws and regulations to ensurethat the Company’s operations comply withall laws and regulations.
Assist the Board of Directors andsenior management to identify andevaluate potential risks, and put forward
corresponding suggestions for material
risks for reference in senior management
decision making.
Work with the risk management unit
on monitoring mechanisms andcountermeasures.

•

•

•

•

•
•

monitoring the implementation of the first line of defense, maintaining the independent management mechanismof the second line of defense, and the effectiveness of the operation of the mechanism. In addition to reporting
directly to the Board of Directors, the risk management unit also regularly reports to the risk management unit of

Examine business growth, risk and reward factors,
and be responsible for planning and implementing
risk appetite and risk management policies
approved by the Board of Directors.
Monitor the implementation of the first line ofdefense and the effectiveness of risk management
mechanisms.
Coordinate the division of responsibilities between
the risk management unit and other units without
violating the principle of effectiveness of risk
control. Regularly review the appropriateness of
the risk organization structure, and revise relevantrisk management policies and systems in a timely
manner.
Summarize the risk information provided by all units(including subsidiaries), and set risk management
policies and limits.
Submit regular risk management reports to the Risk
Management Committee.
Perform stress tests and back-testing.
Supervise and assist subsidiaries in their risk
management business, material loss event
management, and contingency measures.

•

Check theimplementation ofrisk management ofeach unit according
to relevant laws
and regulations,and control various
operational risks of
the Company andits subsidiaries.

Risk management operational framework

CTBC Holding in order to facilitate the control of overall risk in a timely and effective manner.
Three lines of defense in risk management
Risk management is a shared responsibility among all units. Through full coordination across units, the three lines ofdefense mechanism for risk management is formed. The first line of defense is the business units and supporting units
ensuring that the implementation of operations abide by all risk management regulations. The second line of defense

Board ofDirectors

Approval

Exceedingrisk limit

Approval

Seniormanagement

Agree

Breachearning
trigger

Agree

ProposeLimit
monitoring

PolicyReview

Verification

Approval

Review

Approve
response
plan

Process

Reports

IssuesRisk Management
Committee

is the compliance and risk management, which is responsible for planning risk management systems and monitoring
the implementation of the first line of defense and the effectiveness of risk management mechanisms. The third line ofdefense is the audit unit, which is responsible for confirming compliance with various risk management regulations andmechanisms. The second and third lines of defense communicate and discuss internal control matters as necessary.
Three lines of defense in risk management

Parent company
CTBC Holding
Taiwan Life
Risk Management Committee
Audit unit

Asset–liability
management meetings

Senior managers(3rd line of defense)

Business units

Board of Directors

Support units(1st line of defense)

Risk management unit

Other meetings

Compliance unit

Other full-time units

Riskmanagement
unit

Risk limits■■

Establish group risk appetite
Establish limit for various risks
including market, credit and,country risks group level

Policies and regulations■

Basis of daily businessexecution and document
framework

Reports■■■■

Risk integration report
Own Risk and Solvency
Assessment (ORSA) report
Stress test report
Major loss events report(2nd line of defense)

Taiwan Life subsidiaries

36

2020 Sustainability Report37Transparent corporate governance

Climate change risk

Emerging risk management
Global environmental changes and political and economic uncertainty may lead to different or unexpected
emerging risks. Accordingly, Taiwan Life has established risk assessment procedures and management
mechanisms to identify such risks faced by products and services and to integrate them into its operational

As a financial insurance company, we are deeply cognizant of the economic, social, and environmental risks andimpacts of climate change. As such, in cooperation with our parent company, we have adopted the Task Forceon Climate-related Financial Disclosures (TCFD) recommendations; accordingly, we are committed to publicly

decision-making processes.

disclosing our climate-related financial impact and response strategies and are expected to revise our Risk

Emerging risk identification processrisks.

Governance Policy in 2021 to strengthen the weight given to climate change when examining various types of

The Company conducts an emerging risk identification process every year, with a scope including environmental,social, economic, technological, and other risk assessment aspects. In the face of global environmental changes
and development trends, the establishment of emerging risk identification and management procedures will help
the Company identify potential risks as soon as possible, and confirm that relevant units have developed control
mechanisms to achieve the goal of sustainable corporate governance.
STEP

01

STEP

02

Initiate the emerging risk
identification processinclude environmental impact assessments in our investment and financing process. Furthermore, subsidiary
CTBC Insurance has launched relevant insurance products covering climate change, aimed at helping
policyholders to face climate risks with ease. Regarding our own operation, we have implemented various
energy-saving and carbon reduction measures, held power-saving competitions, and conduct regular inventories
of our Scope 3 greenhouse gas emissions.

Conduct emerging risk
evaluation

The risk management unit collects the identification
results of emerging risks, and convenes relevant
units to evaluate the occurrence probability andimpact degree of various risks, for use in screening
the annual emerging risks of the Company.

The annual risk reports released by credible externalorganizations (e.g., the Global Risk Report of theWorld Economic Forum) are referenced in order toestablish a list of emerging risk factors for use as thebasis for risk assessment.

In terms of investment and financing, we actively invest in green energy technology and renewable energy, and

STEP

03

Report to parent company
for consolidation

The Company submits the identification results to its
President for approval and reports back to CTBC
Holding so it can consolidate the emerging risks
faced by the group.

We address the four core elements of the TCFD recommendations (i.e., Governance, Strategy, Risk Management,
and Metrics and Targets) as follows:
1. Governance
The Board of Directors of Taiwan Life is responsible for approving major investment and financing applications
and reviewing major risk loss cases each year in accordance with the Risk Governance Policy, and climatechange-related risks and opportunities are important concerns. The Chief Risk Officer of CTBC Holding
supervises the establishment of TCFD projects and the relevant management framework, and CTBC Holding’s
Risk Management Department has introduced TCFD projects and coordinate climate change-related issues
with the relevant units of each subsidiary. Taiwan Life actively participates in the operation of TCFD projects andEmerging risk identification results in 2021
The responsible units related to emerging risks establish control mechanisms (mitigation measures or response
strategies) or risk measurement indicators to facilitate regular monitoring according to the impact or influenceof risks on our operations. When a risk monitoring indicator’s threshold is exceeded, the unit responsible formanagement shall respond immediately and escalate the issue.
Risk identification/description

Risk factor

Impact on business operations

Key control mechanism factors (mitigation measures/strategies)■■

Infectious
diseasesPrevent the spread of notifiable
infectious diseases among
employees in the Company.
■■■

Cybersecurity
Risks

■

The Company is hit by a
distributed denial-of-service(DDoS) attack and network
connections are interrupted.
A long-term advanced
persistent threat succeeds,
penetrating our internal
network environment to steal
sensitive data.

■

The spread of such infectious diseases
may prevent staff from coming in towork, thus increasing human andmaterial resources costs.
The Company’s internal epidemic
situation may affect the morale of staff.

The service interruption tocustomer-facing websites may lead tosanctions from the competentauthority and damage to theCompany’s reputation.
The leaking of confidential andsensitive data (including personal data)
leads disrupted operations may cause
major financial losses, legal damages,
penalties imposed by the competentauthorities, and damage to theCompany's reputation.

■

■

■

■

■

■

■

Monitor information releases from Taiwan Centers for Disease Control(CDC) and propose countermeasures in a timely manner.
Provide health and disease prevention advice to staff via email.
Engage in health advocacy with staff at all times in order to strengthen
their understanding of infectious diseases.
In accordance with the Contingency Plan for Major Infectious Disease
Incidents announced by Taiwan Life’s Pandemic Control and Response
Team and Human Resources Department, implement relevant pandemic
prevention measures.

Work with network service providers to build DDoS defense capabilities
and establish DDoS attack monitoring and network filtering mechanisms.
Continue conducting annual DDoS drills to improve incident response
abilities.
The Company’s network is designed with a defense-in-depth approachand deployed with multi-layer information security defense protections,and website penetration tests are regularly conducted to resolve
weaknesses and reduce the risk of intrusion by hackers.
Conduct social engineering drills and information security education andtraining to enhance employees’ information security awareness.

jointly review the current status and make progress. The risk unit of Taiwan Life is responsible for formulating
and revising risk management policies and measures as well as for implementing climate risk measurement andclimate risk reporting. The head of the risk management department reports to the Risk Management Committee
and the Board of Directors.
•

An annual climate change plan is formulated in line with the climate change strategy of CTBC Holding.

•Business and investment units are mainly responsible for finding or developing business opportunities related
to climate change. Administrative and general affairs units formulate corresponding measures to ensurecompliance with international carbon reduction and environmental protection trends and requirements ofdomestic regulations.

2. Strategy
The transition risk and physical risk of climate change pose significant uncertainty for business
operations, such as from increasing claims numbers and amounts or decreasing investment profit.
According to the TCFD recommendations, we identify the impact of climate transition risk on specific industries
through climate scenario analysis (taking iron and steel industry as an example), and the financial impact ofphysical risk on the real estate credit business.
Through such financial impact analysis, Taiwan Life is gradually improving its climate change strategies as follows:•

disaster risks.
•

Economic
uncertainty
risk

Due to the global economic
instability caused by COVID-19
and trade wars, exchange raterisk is the main short-term risk
factor.

If the exchange rate loss is too large, in
addition to affecting the Company’s net
worth and capital adequacy ratio, it may
also indirectly affect the Company’s
product sales performance and increase
asset–liability matching risk.

•

Regularly monitor exchange rate fluctuations and issue relevant reports.
In addition, increase the foreign exchange valuation reserve to address
the exchange rate risk of the market.

•

Gradually reducing the risk exposure of high carbon emission assets.

Setting targets for the use of renewable energy, and disclosing the interim results.

Setting carbon emissions targets for our investment and financing business portfolios and monitoring theirperformance regularly.

•

38

Continuing to promote ESG and low-carbon product businesses to reduce operational and unknown natural

Expanding our proportion of green financial services and products.

2020 Sustainability Report39Transparent corporate governance•

Establishing a climate risk exposure control mechanism or risk limits based on our operational and•management requirements.

3. Risk Management
We follow the Risk Governance Policy and have in place mechanisms for climate change risk identification,
climate change risk measurement, climate change risk monitoring, and reporting. Taiwan Life has accordingly
established measures related to transition risks and physical risks as follows:•

Physical risks<SASB:FN-IN-410b.1> <SASB:FN-IN-450a.3>

Based on a rainstorm flood risk assessment model, we analyzed historical data related to flooding disasterseverity and extreme rainfall probability. According to an Intergovernmental Panel on Climate Change assessment
report, stress scenarios were determined and, based on reports from the National Science and Technology
Center for Disaster Reduction (NCDR) and the Water Resources Agency, the probability and loss rate of flooding
disasters in various regions were determined, with loss amounts then estimated through the inventory results.

Transition risk

In cooperation with CTBC Holding, we took the steel and iron industry as a pilot industry for scenario analysis.

Risk type

Using the three temperature scenarios of well-below 2ºC, 1.5ºC, and 2ºC using the Science Based Targets Tool,

Time interval
Base period

Future estimate

13.9%

End of century(2075-2099): 19.7%

Source of information

Inventory of business scope

we conducted a transition risk analysis to calculate the possible financial impact on the Company, specifically bydetermining how changes in carbon pricing costs may affect the Company’s credit, stock, and bond investments.
Confirm theanalysis subject
Review the industrial
chain and identify themain emissions source
enterprises (i.e., the main
tax subjects of a carbonfee (tax) in the future) as
the main evaluation
subjects for scenario
analysis.

Take inventory of carbon
emissions and estimate them

STEP

01

Taking 2019 as thebase year, takeinventory of the carbon
emissions informationof individual
enterprises for thecurrent year andestimate their carbon
emissions for thetarget year of 2030.

Calculate the cost ofcarbon emissions

STEP

02

Under different carbon
pricing assumptions,estimate the cost ofcarbon emissions forthree temperature
scenarios respectively(i.e., well-below 2ºC,
1.5ºC, and 2ºC) forthe cost of carbon
emissions.

Flooding

Estimate risk loss

STEP

03

By using the internalrating or market
approach, the rate of
return of equity portfolio is
estimated to be from -3%
to -10%, and the
expected credit loss ofdebt portfolio is estimatedto be approximately 7–36
basis points.

NCDR Dr. A
Proporti
on of
exposureforhigh-risk
areas

STEP

04

Slope
hazards

3.2%

Droughts
For six carbon-intensive industries, the risk exposure of Taiwan Life is as follows:change-related insurance products launched in 2020 seeing net premium income of NT$784,524.
2. Completes an Own Risk and Solvency Assessment (ORSA) report every year, with natural disaster risk capital

Marine shipping
and airlines(for earthquakes and typhoons/flooding) taken into consideration in assessing capital adequacy.

0.40%

Steel and iron

1.33%

Water Resources Agency
data, April 2021

1. Launches earthquake and typhoon/flood products to help individuals and companies transfer risk, with climate

0.35%

0.90%

28.5%

Subsidiary CTBC Insurance addresses environmental risk management as follows:

CementPower generation

・Real estate collateral・Mortgage・Real estate investments
・Owned operation base

End of century(2075-2099): 3.2%

3. For insured areas, a Hazard Module, Vulnerability Module, Financial Module, and the latest flood risk maps areused to evaluate the probability and possible maximum loss from earthquake and flooding disasters.

Carbonintensive
industryTotal

4. Purchases reinsurance according to the possible risk exposure of policies, thus ensuring solvency by reflecting
the retained risk of natural disaster business and the credit risk of reinsurance repayments.

8.49%

Fossil fuel mining

1.44%

4. Metrics and Targets
Petrochemicals

4.08%

Taiwan Life currently tracks and monitors key climate indicators, including energy use, carbon emissions,water resources, land use, waste, and other air and water emissions, and adopts two major indicators that arecompared with the base year and the number of employees as tracking management units. We have set 2020as the base year, and set targets of reducing carbon emissions, water use, and waste each by 5% by 2025. In
terms of carbon inventory, we have received ISO 14064-1 greenhouse gas inventory certification and disclose ourrelated performance on our website every year.

For such carbon-intensive industries, if the risk exposure shows a significant and continual increase in the
future, Taiwan Life will cooperate with its parent company to start a review process. For large credit customers
or investment targets in a high carbon emission industry, we will work to understand the use of funds, the actual
carbon emissions of the companies, and carbon reduction planning, or discuss whether to gradually reduce therisk exposure of specific high carbon emission industries.

40

Internal controls and internal audits•

Internal control system

In order to strengthen its internal control system, Taiwan Life evaluated the management supervision and control
culture; risk identification and evaluation; control operation and management; information and communication;and supervision activities and corrective measures. Then, based on the results, it established three lines

2020 Sustainability Report41Transparent corporate governanceof defense for its internal controls, namely a self-audit system, a compliance system and risk management

Information security governancemechanism, and an internal audit system. In addition, to encourage staff to proactively promote the three lines

We have formulated an Information Security Policyof defense, we have added effort implementing the internal control system, information security, and complianceand established an Information Security Committee

system to their annual individual performance appraisals.

as the highest information security management
body, with the President serving as its convener•

Internal audit systemand the chef information security officer, who is theWe have established an internal audit system in accordance with the Regulations Governing Implementation ofhighest manager of information security, serving as

Internal Control and Auditing System of Insurance Enterprises. We have also set up an independent internal audit

the executive secretary. Our information security

unit directly under the Board of Directors to assist the Board and management in evaluating the effectivenessdepartment, which is directly under the President,of the internal control system and to provide timely improvement suggestions. The internal audit unit conducts

oversees the implementation of our informationa routine audit at least once a year according to the actual business operations and compliance system of

security executive plan, emerging information security

each unit, and conducts special audits as needed. If any audit deficiencies are identified, they are tracked andissues, and corresponding solutions and reports thesereviewed, with follow-up reports submitted to the Board of Directors. Furthermore, the Board regularly reviews

to the Information Security Committee Meeting every six months. The department also reports any serious security

internal control deficiencies.

issues to the Board of Directors, and it reports the execution outcome of the executive security plan to the Board

3.3 Information security
Management approach for material topic: Information security and customer privacy

every year to elucidate the effectiveness of Taiwan Life’s information security controls. The highest manager of
information security department also participates in the parent company’s regular information security supervisor
meetings, which are convened to review the effectiveness of information security controls across the group.
In 2020, Taiwan Life’s outstanding performance in personal data management won it the Excellence in Personal

Policy andcommitment

The global digital transformation and increasingly diverse application of fintech are intensifying information
security and personal data protection threats. In terms of information security protection, we attach great
importance primarily to prevention and response measures. We work to construct a comprehensive
information security system according by addressing five key areas: information security governance,
information security defense, monitoring and response measures, information gathering and joint defense,and personal information protection.
■■

Specificactions

■

■

■

■

■

Targets■■■

Information security governance: Formulate an Information Security Policy, establish an Information
Security Committee as the highest information security management body, and obtain ISO 27001:2013
Information Security Management System and BS 10012:2017 Personal Information Management
System certification.
Information security defense: Use diverse defense-in-depth technologies to ward off different types ofattacks, and apply various security techniques to protect networks, systems, hardware, operating
systems, and data from external threats.
Monitoring and response measures: Establish a security operation center, create an information security
incident reporting mechanism, and conduct regular drills to train employees to handle information
security events.
Information gathering and joint defense: As a member of the Financial Information Sharing and Analysis
Center (F-ISAC), Taiwan Life receives security intelligence in a timely manner, and participates in F-ISAC
on fixing and blocking to achieve the goal of joint defense.
Personal information protection: Obtain BS 10012: 2017 Personal Information Management System
certification. In 2020, due to our outstanding performance in personal data management, we won the
Excellence in Personal Data Management Award from SGS, ranking among the top 1% of enterprisesin this area.
Enhance practices to keep pace with those of international standards and benchmark enterprises andthereby elevate the maturity of our information security governance.
Strengthen protection from key information security risks and implement defense-in-depth information
security.
Enhance our information security monitoring and response abilities and increase our information security
resilience.
Strengthen our information gathering and connect with other financial institutions to establish joint
defense efforts.
Implement stronger personal information protection measures to further protect the rights and interests ofour customers.

Data Management Award from SGS, ranking among the top 1% of enterprises in this area.
Information security committee

Corporate Information Security Committee
Convener: President
Members: Level 1 manager of each unit

Education andtraining teamInformation security promotion team

Auditing unit

Convener: Chief Information Security Officer
Members: Information security officers of each unit

Verifies effectivenessof implementation

Regulation
formulation teamInformation security
technical teamInformation security defense
In the face of the rapidly changing cyberthreat landscape, we adopt diverse defense-in-depth strategies against
different types of attacks, and apply various security techniques to protect our networks, systems, hardware,
operating system and data from external threats.
Our information security personnel are encouraged to obtain international information security certification toenhance their professional expertise. Furthermore, in order to strengthen the security awareness of staff, quarterly
information security advocacy and social engineering drills are conducted.
Since 2017, both the Company and subsidiary CTBC Insurance have adopted ISO 27001:2013 Information

42

2020 Sustainability Report43Transparent corporate governance

Security Management System and BS 10012:2017 Personal Information Management System standards, andfor the service being rendered. We also reinforce the defense-in-depth security of our infrastructure, such asreceived certification for both. We have also formulated a comprehensive range of risk prevention, monitoring,

through effective data classification, internet access control, data leak prevention (DLP), online browsing isolationand contingency measures to improve our information security management.

framework, network activity monitoring, privileged account management, in order to prevent distributed denial-ofservice (DDoS) and advanced persistent threat (APT) attacks. In addition, the effectiveness of protections against

Introduction of international information security standards

viruses, intruders, and data leaks is regularly monitored, and feedback given to responsible units in the case ofInternational standard

Scope of veriﬁcation

ISO 27001:2013 Information Security Management System

All system development, operation and maintenance,
network management, data center, and information
support activities as well as all operations of units
responsible for information security.

BS 10012:2017 Personal Information Management System

Entire organization (including all departments of
the head office, all branches, regional centers, andcorrespondence offices).

substandard performance.
3.4 Legal complianceManagement approach for material topic: Regulatory compliance

Policy andcommitment

We are committed to ensuring that our operations comply with external laws and regulations and our own
internal policies and principles. We work to reduce compliance-related risks and foster a strong culture ofcompliance in order to enhance customers’ trust in us. To these ends, we are introducing technology that
can assist in improving our compliance management.

Monitoring and response measures
Taiwan Life has implemented Security Information and Event Management to monitor all changes in our internal
system environment 24 hours a day, enabling us to detect and mitigate security threats in real time. We have alsoestablished a monitoring mechanism to protect all computers from network viruses and detect abnormalities as
efficiently as possible.

■

Specificactions■■

Based on such security mechanisms, we have formulated standard operating procedures for handling security

According to risk assessment reports, effectively monitor business operations or units with high risk
exposure for compliance.
Provide relevant education, training, and advocacy on compliance and AML/CFT for various subjects(e.g., directors, senior management, agents, and new recruits).
Build a compliance operating system, monitor our compliance with important legal changes, andensure that all business operations meet the requirements of laws and regulations.

incidents. In addition, drills are held regularly to ensure that personnel can handle security incidents appropriately
and in real time.
■

Information gathering and joint defense
Taiwan Life is able to utilize intelligence collected through its membership in the Financial Information Sharing
and Analysis Center (F-ISAC) in order to resolve system vulnerabilities and adopt mitigation measures in a timely

Targets■■

Build a sound risk assessment mechanism for compliance-related risks, conduct compliance risk
assessments on a regular basis, and effectively improve compliance risk monitoring.
Implement education and training on compliance.
Promote the systematization of compliance management.

manner. We also actively strengthen our information security through red team/blue team exercises, including
social engineering and intrusion drills. For external website services, a certified third-party information security
company is appointed to conduct an information security assessment and penetration test every year to ensure
the effectiveness of our security framework.
Personal information protection
Taiwan Life has in place an Emergency Response Plan for Personal Data Breaches for use in the event of
personal data infringement or security incidents. If an employee discovers or receives a report of a suspected
information security incident, including one involving personal data, they are required to immediately notify therelevant units and assess the severity of the reported incident. If necessary, the incident response officer will
immediately establish an emergency response team, notify a senior manager, and record the details of theincident. The emergency response team’s officer position will be assumed by the Compliance Officer who willorganize taskforces for communication and coordination, investigation and evaluation, and public relations andmedia management. The responsible unit will submit a detailed event report after the resolution of the event andconduct a root-cause analysis to reduce the likelihood of such an event reoccurring.
Taiwan Life strictly protects customers’ data. For example, to reduce the risk of personal information
overexposure, all systems are designed with user interfaces that display only the necessary information required

44

At Taiwan Life, our core principles commit us to abide by all relevant laws and regulations. To this end, we
continue to optimize our compliance system and relevant operating methods, and have formulated Compliance
Risk Assessment and Reporting Guidelines to ensure the consistency of our internal practices. Furthermore, we
conduct an annual compliance risk assessment and use the findings to monitor our business operations andunits that have high compliance-related risk exposure. In April 2020, we submitted our 2019 Compliance Risk
Assessment Report to the competent authority in accordance with the law.
With the trend toward increasingly strict financial supervision, we are systematizing our compliance management
and utilizing our compliance operating system to clearly understand our compliance needs with regard toimportant legal changes, while the Compliance Department conducts monthly assessments of all units’ internal
specifications to verify that they are revised in a timely manner, thereby ensuring that all business operations
meet the requirements of laws and regulations. In addition, we also actively organize education, training, andadvocacy on compliance- and AML/CFT-related laws and regulations for directors, senior management, unit
compliance officers, agents, and new recruits.

2020 Sustainability Report45Transparent corporate governanceMaterial sanctions and improvement measures by competent authorities in 2020

4. We conduct regular personal information education and training to ensure employees understand how the

ReasonImprovement measures

The FSC imposed a fine of NT$1 million on Taiwan Life in accordancewith subparagraph 3, paragraph 5 of Article 168 of the Insurance Act
for having acquired undeveloped land more than five years prior andfailing to use the land in a timely manner and with reasonable benefit,
as required by paragraph 1 of Article 146-2 of the Insurance Act. (Letter
No. Jin-Guan-Bao-ShouZi-10904936682, dated Sept. 15, 2020)

Taiwan Life has been actively engaged in
attracting businesses to the land. By theend of December 2020, the rental rate hadreached 70.24% and the annualized rate of
return had reached 1.831%, as calculatedusing the statutory formula. It is expected tomeet the relevant standards of real estate
investment for immediate use and fromwhich benefit is derived before June 30,
2021.

system operates.
5. We regularly scrutinize various units’ business processes, risk assessment, and personal information checking
as well as the Company’s personal information flow and implementation of maintenance measures.
6. We regularly organize emergency response drills for personal information-related incidents and archive
infringement incidents to ensure that all units can effectively implement contingency measures and discuss
improvement plans.
Intellectual property right
To facilitate the development of Taiwan Life’s fintech and innovation services, we engage external consultants to
help us handle patent applications, stay on top of industry developments, and provide us IP-related insights. As

Note: This table discloses cases involving penalties of NT$1 million or more.

of the end of 2020, we had obtained 7 invention patents, 19 utility model patents, and 1 design patent, for a total

AML/CFT policies and practices

In addition to these, 18 other trademarks have been obtained.

of 27 patents supporting the Company’s online insurance, underwriting, claims, and other insurance operations.

In accordance with the Money Laundering Control Act, Counter-Terrorism Financing Act, and Regulations
Governing Anti-Money Laundering of Financial Institutions, Taiwan Life has formulated a number of internal
regulations to improve its AML/CFT system. We have also established an AML/CFT Committee, which is charged
with ensuring that AML/CFT-related risks are controlled and related mechanism are implemented. The committee

In terms of IP management, we install Smart IT computer asset management software on each computer. This
software collects data on the installation and use of software and hardware across the whole company andmanages computer resources in order to ensure that only legitimate authorized software is used and to regularlyscan the computer software of each unit to avoid the infringement of IP rights.

is also tasked with actively promoting AML/CFT-related education and training so as to improve the professional
competencies of staff and thus increase the effectiveness of Taiwan Life’s AML/CFT efforts. The committee ischaired by the President, with the first-level supervisors of relevant units serving as members, and it meets oncea quarter, with four meetings convened in 2020.
AML/CFT mechanism
Pre-incident prevention

In-process controls

Post-inspection• Name and designation• Regulations• Governance• Training programs

validation• Transaction monitoring• Customer due diligence• Large amount/suspicious• Compliance inspections• Self-checking of units• Internal audit inspectionstransaction reporting

Note: Anti-Money Laundering (AML) / Combating the Financing of Terrorism (CFT)

Personal information protection
We have obtained BS 10012:2017 Personal Information Management System certification in order to establish
and enhance our personal information management system. The relevant practices are as follows:
1. We promulgated a Policy for Personal Information Management and Personal Information Security Guidelines
in accordance with the law, disclosed our privacy protection policy on our website, and disclosed our personal
information protection objectives, management organization, and maintenance measures.
2. The personal information management committee meets regularly to assess the operation of our personal
information management system.
3. We regularly evaluate the effectiveness of our personal information management objectives and theimplementation of the overall personal information management system.

46

2020 Sustainability Report

47

04

Sustainable
FinanceThoughtful
customer service
At Taiwan Life, we attach great importance to the voice of ourcustomers. When it comes to product innovation, thoughtful
service, and professional capabilities, we take meeting the realneeds of customers as the starting point. As we pursue productinnovation step by step under the leadership of the Board of
Directors, “Treating Customers Fairly” is being internalized into the
DNA of the enterprise; thoughtful, customer-centric services arebeing rolled out; case studies are being extended to common casesolutions; and the customer journey is being optimized from theperspective of customers. In doing so, we are continuing to prioritize
financial inclusion and micro-insurance, with our efforts in the latter
having been affirmed by the competent authority for many years.

Treating Customers Fairly withzero sanctions

We implement Treating Customers Fairly and haveachieved the goal of 0 sanctions by 2020.

Among 3 lowest rates ofombudsman applications

In 2020, we ranked among the three lowest rate ofappeals to Taiwan’s financial ombudsman of major life
insurer—a significant improvement from 2019.

Five awards in gov’t
insurance competition48

Our efforts in micro-insurance and small-amount whole life
insurance earned us five awards in the FSC’s Insurance
Competition—efforts that we are committed to expanding
moving forward.

49

Thoughtful customer service

4.1 Treating customers fairly
Management approach for material topic: Customer rights maintenance and service quality

Policy andcommitment

We are actively working to implement the Treating Customers Fairly principles, listen to the voice of thecustomer, provide the best customer service experience, and become the life insurer with the leading
customer experience and operational efficiency.
Internalize Treating Customers Fairly into our DNA- Establish an internal Treating Customers Fairly proposal mechanism to encourage internal innovation.
- Implement NPS-based experience management with rolling reviews to optimize the customer feedback
loop.
- Use complaint management and customer care principles to address customer pain points.
Become the top recommendation of customers- Optimize product and proposal information to make customers understand clearly.
- Refine user interfaces to provide easy-to-understand and transparent information.
- Establish a customer experience team to review the usability of forms.
Promote social sustainability- Design exclusive products and services for seniors, people with a disability, and people with any of an
extensive list of diseases.
- Develop financial inclusion-related and health spillover-effect products, and expand the product ecosystem.
- Initiate/participate in social public welfare activities and set social care service commitments.

■

Striving for an insurance experience with peace of mind
The insurance service has started even before a policy is signed—that’s why we also focus on the initial contact withcustomers before that point as well as the claims settlement and information query services afterward. We look deep into
the insurance policy life cycle to focus on the customer experience from their perspective and to review every scenario
in every customer journey. Through the continual improvement of our target operating model (TOM), we strengthen ourapplication of digital technology, better connect customers with appropriate products, and accelerate and deepen theservices offered to customers through digital tools. These efforts are aimed at ensuring that customers feel they aretreated fairly, reasonably, transparently, and warmly throughout the insurance journey.
Transparent and reassuring insurance process

■

■

■

Targets■■

Internalize Treating Customers Fairly into our DNA and establish an optimal organization, processes,
tools, and capabilities.
Become the top recommendation of customers and establish a mechanism to optimize customers’
full-contact experience from end to end.
Promote social sustainability and drive business strategy and customer segmentation through customer
demand and social sustainability.

■■

According to the family status and income of customers, we consider their existing assets and insurance policies to generate targeted insurance
advice, accurately determine their protection gap, and provide customized services.
Through our customer relationship database, we can quickly and accurately determine the most appropriate planning and product combination tomeet customers’ individual financial objectives, such as retirement planning, children’s education funds, and specific financial managements.

2. Website for safety, stability, and inheritanceWith its fundamental objective of providing protection, insurance planning should fulfill the three main points criteria of providing safety, stability, andinheritance. With these points in mind, a new customer service website has been launched, offering two special sections to easily integrate Big Data
into related daily life scenarios.
■■“AI fortune telling” section: By uploading photos of their palm prints, users can have their fortunes told through an AI-based palm-reading system,with these reports offering corresponding insurance planning suggestions. This unique, highly engaging service is provided in order to effectively
increase the public’s risk awareness and protection needs.
“Nine-square division” section: From birth to retirement, customers’ lives are divided into nine stages. After selecting their life stage, customers
receive customized insurance plans and information, with basic, standard, and premium bundles provided for each stage.

3. Insurance consultant matchingThrough our online matching service, customers can choose the type of insurance they want to take out and their location, and Taiwan
Life will match them with an insurance adviser accordingly. Since the launch of the platform, the cumulative number of visits has reachednearly 200,000, with a satisfaction rate of 90%.

1. Mobile insurance app

During insurance
application

Under the guidance of the Board, Taiwan Life has established the “Treating Customers Fairly 360” policy
framework. Through our three policies and six topics, we are gradually promoting Treating Customers Fairly,
including by setting the goal of zero sanctions for Treating Customers Fairly by 2020. Furthermore, to fully
implement the Treating Customers Fairly Principles, in each of our business areas, we have set up a crossunit Treating Customers Fairly task force to connect product sales and service processes so as to ensure that
customers are treated equally, reasonably, and warmly before, during, and after every transaction and that
customers are provided with the most complete and thoughtful products and services.

1. Insurance Policy Advisory System

Before insurance application

Specificactions<SASB FN-IN270a.4>■■

By automatically importing relevant data, the app autofills numerous fields for existing users when applying for policies, saving them significant timeand effort.
With the app’s Insurance Policy Advisory System, it takes only 10 minutes for a user to apply for an insurance policy, from selecting the policy tocompleting the application form to providing their electronic signature.

2. E-note system■

The e-note system offers a time-efficient alternative to sending hard-copy documents back and forth among Taiwan Life staff, reducing
the risk of personal data leakage in the process. For example, an employee charged with underwriting a policy may send an electronic
document via the e-note system, after which a colleague may reply directly online, saving substantial time and increasing internal
operation efficiency.

Our blueprint for fostering a Treating Customers Fairly culture
1. Claims via blockchain

Treating Customers
Fairly Principles

The right to appeal

Internalize Treating
Customers Fairly into
our DNASix aspects of compliancewith the FSC

Six major Taiwan Life
topics

Implement corporate
culture governance

Promote a customer-first
cultureProvide claims andcomplaints services

Speed up claims efficiency
Promote customer care VOC

Pre-sale and after-sale
information disclosure

Provide appropriate andunderstandable information

Immediate professional advice insolicitation and underwriting

Digital leads service
innovation

Insurance product design

Provide the most appropriate
products and services

Fulfill service commitment

Implement social care fordisadvantaged people

Notifications and disclosures
Sales agents professionalism
Fair performance-based
remuneration

Become the first choiceof customers

Truth in advertising
Attentiveness and loyalty
Appropriate products andservices

Promote social
sustainability■

After insurance application

Fair and honest contracts

Three major Taiwan Life
policies■

Taiwan Life is the first insurer in Taiwan to use blockchain technology to implement measures preventing the counterfeiting, leaking, theft, and abuseof customers’ medical data. Customers can directly apply for claims online using the blockchain service—eliminating the need to provide a hard-copy
diagnosis certificate, receipt, and other documents.
All authorization, transmission records, and medical certificate data provided by a hospital can be viewed at any time. This has reduced the averageclaims settlement time for such cases from 13 days (when using the hard-copy approach) to just four days.

2. Convenient compensation via ibon
By cooperating with 7-Eleven, the largest convenience store chain in Taiwan, Taiwan Life allows policyholders to apply for claim settlements directly at
the ibon self-service kiosks stationed in nearly every 7-Eleven location. The ibon kiosks are accessible 24 hours a day, every day of the year, allowing
the claim settlement service to be accessible made anywhere, anytime. Claims expenses may be paid out in as little as 30 minutes.
3. Official LINE insurance service
Taiwan Life is leading the industry with its official personalized service on the LINE instant messaging platform, providing transparent and real-time
information disclosure (with functions including claims amount predictor and contract change/insurance/claim progress queries), all without the need tofrequently log in.
4. Function optimization for policy change applications■■

Online changes: In response to increased customer autonomy and the development of digital tools, customers have become moreaccustomed to online inquiries and changes to their policies. Taiwan Life currently provides up to 21 items that can be applied for directly
online, eliminating the need for customers to provide various documentation or to travel to a Taiwan Life branch.
One-stop customer service: Customers can call our 0800 customer hotline to directly make policy changes.

Insurance process

Note: Taiwan Life does not apply the “sales principle of complex and high-risk products” (no sales of related products) in the nine Treating Customers Fairly Principles.

50

2020 Sustainability Report51

Thoughtful customer service

Listening to customers
We regularly review the satisfaction level of customer service journeys (e.g., the insurance journey, payment
journey, and claim journey). In doing so, we review the shortcomings of various processes according to customer
feedback and formulate plans for improvement. As part of these efforts to continually optimize the end-to-end
customer experience from sales to service, we introduced the Net Promoter Score (NPS) in 2019, using it tosystematically manage customers’ experiences and feelings, and optimize those with poor satisfaction levels inorder to better meet our customers’ needs.
How we care
Customer care mechanism

NPS data monitoring

Review of complaints from the perspective of customers
From case resolution to general improvement

Customerfeedback
collection

Proactive tracking of customer journey contact perception
Dynamic understanding of customer experience for design optimization. Review of key complaint cases Monthly. Tracking management for improvement plan Monthly. rNPS survey (including major life insurance brands) Annually

Customer complaints service

0800 customer care service

Risk
classification

Root cause
analysis

Root cause
clarificationData
analysis. Improvement plans forjourney pain points

Customerexperience
improvement. tNPS survey (11 scenarios in total) Monthly

3. Striving to be the top recommendation of customers
Every year, we commission a third-party market research company to conduct a brand NPS survey to help
the Board of Directors and the Company’s senior management team accurately understand the current statusof customer experience, systematically track achievements in customer experience over the years, andappropriately allocate resources to improve deﬁciencies.
According to the rNPS survey in October 2020, Taiwan Life ranked No. 2 in Taiwan’s life insurance industry—up fromNo. 4 in 2019 and improving the most of all six major life insurance brands surveyed. The main improvement item was“satisfaction with after-sales service.” Speciﬁcally, customers were most satisﬁed with the warm after-sales service
provided by agents and the ﬂexible customer complaint handling mechanism. A total of 1,214 valid samples werereceived, and the sampling controlled for age and gender according to Taiwan’s population distribution.
Treating Customers Fairly has been internalized into Taiwan Life’s DNA
Innovative IDEA Box solutions
To encourage staff to internalize the Treating Customers Fairly spirit, we have integrated the Treating Customers Fairly
Principles into our daily work, to which end we launched the IDEA Box contest in 2020. This monthly innovation
contest encourages staff to stand in the customer’s shoes when it comes to their own business operations—to think
about what can be done better by Taiwan Life and how the customer experience can be optimized accordingly. To
further encourage staff to propose innovative solutions, those whose suggestions are taken on board receive
additional points in their performance evaluations. In addition, annual TCF awards are to be held, with Board
members to serve as the judges in selecting the best Treating Customers Fairly proposals.
In the three months since the inaugural contest was launched, more than 30 creative ideas have already been
received. We are seeing front-line colleagues proactively identifying problems and pain points they encounter in their
daily duties and formulating solutions based on the Treating Customers Fairly Principles. This is making Treating
Customers Fairly not only a top-down policy goal of the Board of Directors but also a bottom-up campaign with realengagement from front-line employees.

Inventory
crosschecking. Implement experience
optimization. Follow up and review
results regularly

Propose SOP
Note 1: Transactional NPS (tNPS) refers to the momentary level of recommendation of customers upon completing an experience of a product or service.
Note 2: Relationship NPS (rNPS) refers to the overall level of recommendation of customers for brands, products, services, etc. in the same time interval (usually on a quarterly or
annual basis).

1. Understanding the customer’s opinion at the moment of truth
We attach great importance to the moment of truth, particularly at our six most frequent points of contact withcustomers, namely the 0800 customer service hotline, payment, change of contract, claims settlement, businessservice, and counter service. We collect customer satisfaction data and feedback through telephone interviews
every month. The average customer satisfaction rate in 2020 was 97%, which we take as an important referenceindicator of customer experience.

Develop idea

Complete the proposal

Develop Treating Customers Fairly-related ideas thatdiffer from current practices

Submit proposal

Reward mechanism

Send proposal tocontest mailbox

ideabox@taiwanlife.com

Ideas and judged, with amaximum prize of
NT$5,000

03

04

Download proposal form
and more

Customer service satisfaction over the years
100%
98%

98%

99%

2019

99%

98%

2020

2018

96%

2020

96%
2018

96%

2019

94%

94%

95%

2019

96%

2020

2018

92%

99%
2018

99%

2019

98%
2018

96%
2018

99%

2020

98%

99%

2020

2019

95%
2019

91%

2020

90%
88%
0%

0800 customer
service hotline

Payment
service

Contractchange service

ClaimserviceBusiness
serviceCounter
service

2. Focus on all customer journey experiences
In order to optimize the service process, Taiwan Life comprehensively reviews 11 major customer journeys,
including regarding daily contact, insurance, product selection, policy inquiries, conservation, payments,
policy loans, beneﬁts, claims, customer service, and policy surrendering, and sends more than 20,000 online
questionnaires on average every month to determine the NPS trend for each journey. For customers who respondwith a low NPS, we provide care through response calls in real time as well as monthly follow-up care. In 2020,
the Company performed well in the three journeys that customers care most about, namely insurance (56 points),
claims (43 points), and everyday personal interaction (36 points).

52

01
STEP

02
STEP

STEP

STEP

Handling customer feedback carefully
We provide multiple transparent complaint channels so customers can choose the one they feel most comfortablewith. After a complaint is accepted, the responsible personnel contact the customer in question to clarify the
problem and evaluate potential solutions in order to properly resolve the issue within the time limit. In the processof handling complaints, Taiwan Life also continues to review relevant service processes and carries out related
discussion and adjustment measures.
In order to improve customer satisfaction, the Company has formulated Management Measures for the Early
Warning Mechanism of Customer Complaint Review Cases as well as a Complaint Service Management
Mechanism. Accordingly, we analyze the business category of cases and the main patterns of disputes every
month, and produce an early warning report with a light signal (red, yellow, or green) indicating the status ofreview cases every month, so as to effectively handle all the customer complaints and ombudsman cases.
In addition, we conduct customer care by adopting a “suit the remedy to ﬁt the case” approach. We propose
improvement plans based on key complaint cases, the problems of which we extrapolate to common casesolutions. For example, we use AI technology to autoﬁll information in the event that a policyholder leaves a key
ﬁeld empty when making a payment—an error that would otherwise lead to a failed payment and thus potentiallydamage their rights and interests.

2020 Sustainability Report53Thoughtful customer service

Customer service department

Responsible unit

Negotiate toreach a resolution. Clarify the root cause. Review and improvement. Avoid repeating the same error

0800 customer Branch counter
service hotline

LetterInsurance
BureauAgentsMail

Financial
OmbudsmanInstitution

Offline management

Customer experience related departments

Responsible unit
First-line agents given
authorization based on
flexible guidelines. Case sharing. Culture shaping

Examine the root causesof important cases

Analysis of reasonsfor complaint. Indicator management. Insurance Bureau ranking. Number of ombudsman applications

Objective customer complaint
management mechanism. Improve the system. Implement tracking

Ombudsman application rate
2018

2019

Rate of Ombudsman Cases

0.042041202<SASB FN-IN270a.2 >4th place

10th place
0.068184165

0.063428118

■

■

■

■

■

■

■

■

■

ed

■

ChannelFrequency

Refin

Easy and multiple customer communication
Understanding that different customers have different preferences in how they receive information, Taiwan Lifehas established multiple communication channel to provide them complete, immediate, and clear insurancerelated information while fulﬁlling our responsibility to inform and communicate with customers. We also interact
with customers through a variety of channels to provide quick and appropriate responses and assistance.

Management approach for material topic: Fintech applications

Discussion points

Official website

Any time

Helps customers understand the content of insurance products■ Matches insurance customers with advisers according to each customer’s specific demands,saving them time

Official Facebook page
Taiwan Life Like

Daily post

Promotes the brand image of Taiwan Life, including by providing important information such as
customer-related activities, services, and product news

Policyholder e-newspaper

Monthly

Press releases

Occasional■

Lectures and forums

Occasional

Provides customer health and financial information■

Policy andcommitment

As customer-centric digital finance becomes ever more ubiquitous, we have adopted three major digital finance strategies:
digital tools for intelligent empowerment, digital platforms for complete service, and intelligent operation back-office support.
These strategies aim to promote the online and offline integration of digital engineering, create a service model that offers theindustry’s best customer experience, and provide an omni-channel digital financial service experience.
■

■

■
■

■

Provides information to policyholders
Consolidates and provides information for policyholders regarding exclusive services and theirrightsProvides customer information and insurance-related knowledge
Raises awareness of social issues and provides customers with financial information

Annual surveys are conducted on the pension, long-term care, medical care confidence,adequacy, and life satisfaction of retired and non-retired people in Taiwan, with the findings
disclosed and discussed at a yearly seminar■
Fosters understanding and healthy approaches to retirement and raises awareness of new
retirement philosophies in Taiwan’s aging society

Specificactions■■■

Seminars on
retirement-related issues

Yearly0800 customer service hotline

Any time

Provides customers with consultation on various policy issues
Pushes personalized notifications■ Provides the latest Company news and activity information■ Improves customer adhesion■

Official LINE account54

Occasional

re
po
r

Note: Rate of ombudsman cases = [number of ombudsman cases / total number of signed contracts] * 10,000.

Dynamic loop mechanism
4.2 Digital ﬁnance
As Taiwan Life strives to solve customers’
upervision and guid
wn s
anc
-do
e
p
pain points, actively invest in digital serviceoTinnovation, and become the life insurer with the
Guidance& Feedback
best customer experience, it takes digital tools
Board of Directors
for intelligent empowerment, digital platforms
for complete service, and intelligent operation
External
back-ofﬁce support as the three main paths
Customers
partners
toward achieving these goals. We promote
online and ofﬂine digital engineering andDNA
Learning
promote a consistent customer ﬁnancial service
Drivers
Implement social care fordisadvantaged people
experience for all channels. The EdgE digital
Principles for Treating
Provide the most appropriate
Customers Fairly
process transformation project lab has been set
products and services
Model learning from Japan
Digital-led service innovation
U.N. SDGs
up to develop a series of digital tools, including
Provide appropriate andPSI
understandable information
the iKASH smart assistant, Proposal System,
Promote VOC-based customer care
Promote a customer-first culture
and mobile insurance app, so that our agentscan provide customers with fast and complete
services through digital tools and become
insurance advisers with all-round professionaland digital capabilities.

Bottom
-u
p
tra
ck
ing

Industry ranking

7th place

2020

Dynamic loop optimization management
Regarding Treating Customers Fairly, Taiwan Life has formed a dynamic and optimized “loop mechanism.” By utilizing
top-down supervision and guidance from the Board of Directors and feedback from external partners and customers,
we have formulated a speciﬁc action plan, implemented and tracked feedback bottom up, and optimized this loop
from the outside to the inside through external model learning and continued cross learning and improvement to movetoward positive cyclical growth. Moving forward, we will continue to take a customer-centric approach grounded in
the Treating Customers Fairly 360 policy framework as we strive to treat customers fairly in the context of three corepolicies and six topics. Furthermore, as we pursue the goal of zero sanctions, we will continue to pay close attention to
the needs of customers and carry out CTBC Holding’s “We are family” spirit by using the loop mechanism to ensure
continued improvement. These efforts are all born from the same commitment: to become Taiwan’s leading life insurer
with the best customer experience and operational efﬁciency.

outside to inside
from
tion
a
iz
tim
op

Customers

Follow-up
management

Complaint handlingTransfer

Call / counter

Online processing

Front-line handling

Clarify the root cause andimprove thoroughlytStrengthen the complaint service management mechanism■

Targets■■

The average utilization rate of both our mobile insurance app and iKASH smart assistant exceeds 90%.
With the launch of our official LINE account, insured customers can directly query personalized information via theirLINE app. As of the end of 2020, 1.45 million people had added the account.
The eClaim blockchain service was launched to save policyholders’ time in preparing diagnosis documents and toprovide robust protection of customers’ personal information. The service has won seven claims-related awards athome and abroad.
The Elite Agent Appointment Booking Service allows customers to make in-person appointments with agents online.
Robotic process automation was introduced to conduct repetitive tasks and increase personnel performance.
Enhance customer service through multiple digital touchpoints, provide customers with the best digital experience,
continually improve the new official Taiwan Life website, optimize the mobile app, and launch intelligent customer
services and a health promotion app.
Use digital and technological empowerment to build digital tools such as for a mobile policyowner service and mobile
claims settlement, and leverage these by combining them with the warm, professional services of our staff.
Build a cross-channel digital track platform, promote online and offline integration, and achieve an omni-channel
service experience.

2020 Sustainability Report55Thoughtful customer service

Digital service innovation

seven awards at home and abroad, including at the IDC DX Awards, Insurance Asia Awards, and the National
Brand Yushan Awards. With the rapid development of e-commerce, the Company will continue to enhance its
various digital platform services in the future.
Intelligent operation back-office support
With the help of intelligent automation, theback-office information system isconnected in series to effectively improve
our operational performance.

Digital tools for intelligent empowerment

Digital service
innovation

Using a variety of digital tools, we
accelerate the development of smart
services and improve the efficiency andquality of our agents’ service.

Online insurance services
Travel Insurance

Digital platforms for complete service
We provide multiple digital platforms forinternet users, offer transparent insurance
products and information, interact withcustomers through the platforms, andcreate integrated online and offline
services.

Interest sensitive
annuity

Injury insurance

Term insurance(long term)

Term insurance(1 year term)

Small-amountwhole-life
insuranceIntelligent operation back-ofﬁce support
Since 2018, Taiwan Life has been introducing robotic process automation (RPA) to assist staff to perform
repetitive tasks and improve operational efﬁciency. Through intelligent back-ofﬁce operations (i.e., “logic
centralization,” “human–computer collaboration,” and “intelligent operations”), front-end digital tools and digitalplatforms are being ﬂexibly supported. Indeed, in 2020, a centralized operation unit was set up and an imagescanning platform was introduced so that cases can be ﬂexibly dispatched and supported across various
regions. In addition, using data analysis technology, we have optimized our risk management control model andimported a visual AI application to this end. At present, the Company has 11 RPAs in operation.
Note: Logic centralization refers to the realization of cross-regional operation through a scanning and dispatching system, and the overall distribution of underwriting/conservation/
claims cases among branches in northern, central, and southern Taiwan in order to achieve the optimal distribution of cases in each region and improve overall operational andmanagement efﬁciency.

Digital tools for intelligent empowerment
Our insurance agents use our digital tools to accurately understand customers’ needs, explain the content
of products and services through mobile tools, smoothly complete insurance service tasks, track customers’
progress, and take the initiative to address abnormalities. Nearly 100% of our insurance agents use our mobile
insurance app, which greatly reduces the ﬁling time and completes the underwriting process faster.
Agents can also use the iKASH smart assistant to facilitate customer interviews, activity management, andcustomer management, further increasing their professionalism and capacity. As of the end of 2020, the morethan 90% of the core personnel of our agent channel were using iKASH.

56

Feature description

Number of users in 2020

iKASH smart
assistant

Aimed at younger generations, this is an all-round intelligent assistantmarketing tool for agents. It integrates digital thinking to offer functions suchas list recommendations, customer management, visit maps, and activity
management.

The usage rate by corepersonnel exceeds
90%.

Facilitated first-year
premium income of
NT$796 million

Mobile InsuranceappWith this app, agents can quickly submit an insurance application so that theinsurance process is more convenient, simple, transparent, safe, andindependent.

The usage rate byinsurances agents is
close to 100%.

Saved 2.2 million sheets ofpaper from being printed

24-hour online insurance service
Six types of products offered and new interface design launchedFirst in industry to offer Apple Pay

The number of new
online members
registered was 75,647,
up 10% from 2019.

Achievements in 2020

First-year premiums of
online insurance reached
NT$149 million
Second largest share of
online insurance market■■

Online insurance■■

Convenient services

Digital platforms for complete service
Taiwan Life provides a digital ﬁnancial experience withmultiple scenarios, convenience and speed, and complete
service. We were Taiwan’s ﬁrst insurer to introduce Apple
Pay for online insurance payments and one of the ﬁrst to
launch online insurance. In 2020, the Company launched its
ofﬁcial LINE account, which enables policyholders to directly
query personalized information via the LINE app. When aspecial service is needed, our digital services are used fora seamless online-to-ofﬂine transition. As of the end of 2020,
1.45 million LINE users had added our account.
To meet the product consultation needs of new generations ofcustomers, Taiwan Life launched the Elite Agent Appointment
Booking Service in 2019. With it, users can directly makean appointment with an agent online, and to meet them for
consulting and policy application in person. In 2020, thenumber of bookings made with the service exceed 1,000.
The Company’s digital innovation efforts have been highly
recognized. In 2020, the eClaim blockchain service won

Smart insurance

Note: “iKASH” is an acronym for “Knowledge,” “Attitude,” “Skills,” and “Habit.”

Digital ﬁnancial services

E-Pay Snap Transfer

Remit claim settlement with one action (i.e., uploading an image of the claim
application file), after which the claim expense will be reimbursed in as little as 30
minutes.

ibon convenience
store claims

Upload application data through the ibon self-service kiosk at any 7-Eleven forreal-time review, with application documents able to be sent concurrently.

Blockchain service

eClaim blockchain
An authorized hospital encrypts and transmits a customer’s medical
information to the Company using blockchain technology. This means theinsured does not need to prepare application documents, such as adiagnosis certificate, and enjoys the most robust information security
protection.
Claims alliance and conservation alliance blockchain
Through various channels (e.g., the official website of any insurancecompany participating in the alliance chain, an app, or an in-person agent
meeting), customers can apply for a claim or conservation service. Afterbeing authorized by the insured, the application documents can beexchanged and shared between each insurance company participating in thealliance chain, with a convenient mechanism in place to avoid repeat
payments.

■

More than 2,800
cases.

Shorten the original 15 day
claim settlement process
to 30 minutes.

More than 8,800
cases.

-

2020 Sustainability Report57Thoughtful customer service

4.3 ESG insurance products
Taiwan Life has always adhered to a customer-centric approach, striving to develop insurance products andpursue innovation in order to meet the needs of our customers throughout Taiwan and achieve ﬁnancial inclusion.
In this ﬁnal regard, our traditional products have been targeted at three main groups: seniors, those with healthproblems, and disadvantaged people. More recently, as we have adapted to Taiwan’s aging population, we
have introduced a number of new insurance products catering to seniors. With the development of digital
ﬁnancial technology, we are increasingly able to connect digital tools with insurance services, launch spillovereffect health management insurance products, and continue caring for disadvantaged groups. In addition, weare actively developing ESG-related investment targets and incorporating ESG-related considerations into theselection process of securities investment trust companies, hoping to contribute to the common good through thestrengths of our core business.

<SASB:FN-IN-410b.2>
1. Seniors
The protection of older people is one of the long-term concerns of Taiwan Life. In 2020, we launched theindustry’s ﬁrst group insurance for long-term care with payment-in-kind. In cooperation with Chunghwa
Senior Care Corp., we provide integrated services so seniors can enjoy old age at home. Professionalcare managers evaluate the living conditions of seniors and connect them with long-term in-home careservices, easing the burden for them and their families.
In addition, we have launched a number of insurance products for seniors and provided friendly insurance
conditions for seniors. For example, we have relaxed age limits for insurance products; more than 60% of ourpersonal insurance products are now open to people over 70 years old. We have also launched long-term careand protection for people with cardiovascular diseases and other insurance products, and have optimized theinsurance process for seniors so more of them can enjoy proper protection.

Management approach for material topic: Affordable and accessible products and services

Products for seniors
Product type

Policy andcommitment

We actively support the government’s campaign to strengthen people’s protection, making up for the lack of social
insurance and social assistance mechanisms; to promote micro-insurance, small-amount whole-life insurance, inclusive
financial products and services; and to develop online insurance products.
■■

Specificactions■■■

We won five awards in the FSC’s insurance competition.
As e-commerce consumption increases, we continue to develop online insurance products to improve service
performance; the overall performance of our online insurance was ranked as the second best in the industry in 2020.
We are building an online insurance system for investment-linked annuity insurance products.
A financial friendly service system has been planned.
In response to government policies, we provide a number of insurance products for seniors and disadvantaged groups,
and have launched spillover-effect health management policies.

Traditional products:
We will improve insurance coverage for people in Taiwan and reduce the threshold of insurance for millennials.
In line with increasing e-commerce consumption, we will continue to develop online insurance products, improve service
performance, and implement inclusive financial products and services.

Insurance
products forseniors(Including annuity,
long-term care)

Small-amountwhole-life
insurance

Summary
1. We provide annuity insurance that does not require a physical examination or health statement for
middle-aged and older customers as a planning tool for retirement. To reserve future economic
resources for seniors, the maximum age of such insurance is 75, with renewal guaranteed to 85 inorder to meet the need of medical coverage in the aged phase.

2. We provide long-term care insurance and other similar types of insurance to prepare for the costs ofcare in the future.
To support the government’s push to improve the basic protections available in Taiwan, we havelaunched small-amount whole-life insurance products with low premiums, low insurance thresholds,
and no physical examination required and which can meet the basic insurance needs of Taiwanesepeople.

■■TargetInvestment-linked products:
Add new online investment-linked annuity insurance products in 2021 to enhance the diversity of online investment
products. In addition, improve the functionality of online insurance products, giving customers access to automaticbalancing and automatic profit-taking on investment targets and other endorsement terms to achieve the goal of
long-term stable returns.
Optimize the investment-linked products wealth management website and introduce a professional portfolio recommendation system.
■■

Seniors

Friendly insurance
for seniors
ESG insurance products

Health promotion
Protection for
disadvantaged people

Traditional products

Investment-linked products

Developmentof ESG targets
Selection of securities
investment trust companies

Traditional products
With care and empathy, Taiwan Life actively responds to the government’s campaign to improve the protections
enjoyed by people nationwide. To this end, we are working to ﬁll the gap in social insurance and social
assistance, to promote micro-insurance and small-amount whole-life insurance, and to provide convenient
insurance products through rigorous and thoughtful product design in order to offer optimal protection forseniors, those with pre-existing conditions, disadvantaged people, and other groups. With the aging of Taiwan’s
population, fewer children, changes in lifestyle and diet, and economic changes, preventive health care isalso one of the core values driving our development of insurance products. Indeed, we have been gradually
introducing a series of health promotion policies (spillover-effect policies) to reduce medical service treatment
costs and expand insurance protection and social stability. As of the end of 2020, a total of 15 ﬁnancial
inclusion-driven policies had been developed.

58

2. Health promotion
To encourage people to develop healthy long-term habits of exercise and health management, Taiwan
Life has expanded the scope of its insurance from ex post compensation to ex ante prevention. Throughthe active development of digital ﬁnancial services in recent years, we have developed Big Data
analysis and cross-sector integration tools with medical institutions and private companies to provide innovative
products that combine precision treatment, physiological data monitoring, and remote care. In addition,
we combine digital technology and an interactive insurance experience products to directly embed healthmanagement rewards into the design of our products.
Health promotion products
Product type

Product nameSummary

Step-linked
spillover-effectpolicyHealthManagement
Term Life (HM5)

We provide multiple application methods; policyholders can use any of three
step-counting apps or connect with a wearable ﬁtness tracker to perform healthmanagement anytime, anywhere. Those who reach their steps goals can enjoy
premium payment discounts of up to 8%. The discount period can last for up to 57
years—the longest in the industry.

Health checklinked spillovereffect policy

Dread Disease
Term Health
Insurance(HCD1)

Health examinations are provided to policyholders. If the insured is deemed
healthy, they can enjoy a lower premium rate for the next nine years and previously
overpaid premium will be returned as a “health bonus,” with a maximum rate of20%.
• To encourage effective prevention of diabetes, “premium discount from the third

Diabetes
exclusive
insurance policy

Substandard
Diabetes
Term Health
Insuranceyear” and “health promotion reward” mechanisms allow policyholders to enjoy apremium discount of up to 35% as well as a health promotion bonus.
• Policyholders are encouraged to control their blood sugar over the long term anddevelop healthy living habits. If they regularly upload their blood sugar level andreach the set threshold, they can enjoy a premium discount of up to 5% every year
from the second policy year.

2020 Sustainability Report59Thoughtful customer service

3. Protection for disadvantaged people
To put the spirit of ﬁnancial inclusion into action, we actively support government policies
and provide the most basic accident protection for economically disadvantaged groups andother marginalized groups. Among these efforts, the performance of our micro-insurance has
been afﬁrmed by the FSC for three consecutive years. In 2020, we won second place in theMicro-insurance Contest Insurance Company Category as well as picked up the Micro-insurance Contest Sprint
Award, Micro-insurance Contest Excellent Performance Award, Micro-insurance Contest Caring for the Physicallyand Mentally Challenged Award, and Small-amount Whole Life Insurance Excellent Performance Award. Overthe years, the total number of people insured through our micro-insurance products has exceeded 160,000. In
addition, we have launched a number of insurance policies speciﬁcally for patients with type 2 diabetes, hepatitis
B, and speciﬁc mild to moderate physical and mental disabilities.
Achievements of protection products for disadvantaged people

Investment-linked products
In the planning of investment-linked products and new investment-link targets, Taiwan Life provides ESG related
targets for the public to buy, increasing the opportunities for the public to invest in the ESG industry. And
through the selection mechanism of the Securities Investment Trust Companies, we work with the partners of the
Securities Investment Trust to implement the ESG.
1. Development of ESG targets
In 2019, Taiwan Life introduced a target maturity fund with an ESG investment strategy connected to theinvestment-linked policy Xinfu 100 series. The fund raised NT$1.23 billion and two new discretionary investment
targets with ESG investment strategies were subsequently introduced in 2020. As of the end of 2020, the assets
under management (AUM) of the latter two funds totaled NT$2.147 billion. In the future, we will continue to utilize
ESG strategic investment targets to launch new products.
2. Selection of securities investment trust companies

Unit: NT$

Product
type

Micro-insurance policy

Personal micro-insurance policy
Taiwan Life provides basic protection for people with disabilities anddisadvantaged people. We provide simple approval of insurance
applications, free of physical examination. Customers only need toprovide a copy of a disability certificate and pay a small premium toget protection.
Group micro-insurance policy
We offer group insurance with low premiums, low coverage, andprotection that is easy to understand. This insurance provides medical
protection for people from low-income groups or other marginalizedgroups in order to reduce the impact of sudden accidents on family
finances and to protect family.

Policies for people
with disabilities

In 2014, Taiwan Life cooperated with Taiwan Lottery, administrator of
the national public welfare lottery, to tailor products for its sales staff,
the recruitment of whom prioritizes candidates who have a physicalor mental disability or are from a low-income group, including single
parents and indigenous people.
We provide death protection and maturity benefits, which also serve
as financial planning. The rider provides double protection for
accidental death and major burn injury. People can be insured
regardless of their gender or the type or degree of physical or mental
disability, for age from 20 to 90. This insurance fully embodies theTreating Customers Fairly Principles.

Impaired-risk insurance60

Summary

In 2014, we approved the first policy for people with pre-existing
conditions in Taiwan, providing exclusive term comprehensive
medical insurance for patients with type 2 diabetes. We have also
launched Taiwan’s first exclusive comprehensive medical insurance
for patients with hepatitis B, introduced preventive health insurancewith health rebate benefits in order to encourage the insured toregularly track the condition of hepatitis B, promote healthmanagement, reduce the risk of severe liver disease, and provide
death or funeral expenses benefits and survival benefit as the capital
protection mechanism.
In addition, exclusive whole-life medical insurance for 13 specificcancers (initial stages or mild severity) has been launched so thatpatients with cancer can still be protected.

Results
2020

2019

2018

Accumulated
Accumulated
Accumulated
insured amount:insured amount:insured amount:
NT$ 35.05 billion NT$ 23.03 billion NT$ 15.1billion

Accumulated
insured amount:
NT$ 2.99 billion

Accumulated
insured amount:
NT$ 2.98 billion

Accumulated
insured amount:
NT$ 2.95 billion

Accumulated
insured amount:
NT$ 4.3 million

Accumulated
insured amount:
NT$ 2.9 million

Accumulated
insured amount:
NT$ 2.8 million

Taiwan Life is increasingly working with its partners to deepen its ESG-related practices. In February 2021, theCompany revised its Measures for Securities Investment Trust Screening and Selection to speciﬁcally include
ESG evaluation as a selection criterion.
3. Senior-friendly insurance
Due to the investment risks of investment-linked insurance policies, understanding the investment risks andthe suitability of products can be difﬁcult, particularly for seniors. In order to provide a more friendly insurance
environment for seniors, Taiwan Life not only records consultations with older customers in accordance with thelaw but also limits the investment scope to “conservative” and “steady” investment targets for those over the ageof 70.

2020 Sustainability Report

61

05

Sustainable
Finance

Stewardship andresponsible investment
As part of our efforts to promote sustainable investment, we voluntarily adhere to the U.N. Principles for
Responsible Investment (PRI) and have established a sound system of responsible investment. By doing
so, we hope to support invested parties on ESG-related issues while reducing our own investment risks inthe process. Taiwan Life is responsible for leading the CTBC Holding task force on responsible development on behalf of the parent companies and its subsidiaries. Furthermore, CTBC Holding’s Corporate
Sustainability Office reports to its Sustainability Committee on issues related to sustainable finance policy,
goals, and progress to facilitate the formulation of responsible investment strategies. Moving forward,
guided by its comprehensive responsible investment strategy and processes, Taiwan Life will work torealize its commitment to the interests of clients, shareholders, and society; fulfill its responsibilities as an
institutional investor; and better realize its investment and financing responsibilities.

The Asset Triple A Infrastructure Awards
We received the Green Project of the Year, Asia Pacific; ESG Investor of
the Year for Insurers; and Green Project of the Year, Taiwan accolades
from The Asset magazine’s 2020 Triple A Infrastructure Awards.

Over NT$32 billion in green investment
and financing

The total amount of green investment and financing approved for
Taiwan Life has reached NT$32.687 billion.

Stewardship and responsible investment

5.1 Stewardship policy
In order to encourage similar actions by other institutional investors and to implement the spirit ofresponsible investment, Taiwan Life formally signed on to the Stewardship Principles for Institutional
Investors on Aug. 24, 2018. As a signatory, Taiwan Life aims to better realize its responsibilities asa corporate citizen and to create sustainable value for the economy, environment, and community.

Management of conﬂicts of interest
We take our commitment to customers and shareholders seriously, which is the reason we strive to avoid conﬂicts
of interest. In the process of carrying out our business, possible conﬂicts of interest include:
Stewardship principles
for institutional
investors

Stewardship policy

I. a transaction or investment that adversely impacts a client or shareholder for Taiwan Life’s own beneﬁt; andII. a transaction or investment that beneﬁts a particular party but is detrimental to other clients, shareholders, or
stakeholders.
In order to avoid conﬂicts of interest, we maintain regulations on managing conﬂicts of interest; organize
education and training programs; and have in place hierarchical responsibility, information control, ﬁrewall, and01

The Company is committed to establishing a corporate governance related framework, implementing internal management, creating
shareholders’ interests, strengthening the functions of the board of directors, giving full play to the functions of supervisors, protecting therights and interests of customers and respecting the rights and interests of interested parties, maintaining solvency, improving informationtransparency, and observing and evaluating the impact of external situations and environmental changes on the overall operation of thecompany at any time, putting forward sound strategies in time to face challenges. The members of the Board of Directors possess thenecessary knowledge, skills and qualities to perform their duties, and comply with the Company Act, the Regulations Governing Required
Qualifications for Responsible Persons of Insurance Enterprises and relevant laws and regulations.

supervision oversight mechanisms. In 2020, Taiwan Life recorded no material conﬂicts of interest. To continue
effectively controlling and preventing conﬂict of interest in the future, the following speciﬁcations are in place:
1. Management of conﬂicts of interest with stakeholders
Regarding the rights and relationships of stakeholders, the Company’s Operating Procedures for Engaging
in Transactions other than Loans with Stakeholders has been formulated and promulgated for implementation

02

The Company establishes an Audit Committee and Risk Management Committee that are to be responsible by the Board of Directors inorder to improve the supervision and strengthen the management functions; and by resolution of the Board of Directors, the organizational procedures have been formulated respectively.

in accordance with Article 45 of the Financial Holding Company Act, the Insurance Act, and the Regulations
Governing Transactions Other Than Loans between Insurance Enterprises and Interested Parties; if the Company
conducts transactions with stakeholders in accordance with the relevant provisions of the Regulations Governing
Implementation of Internal Control and Auditing System of Insurance Enterprises, transactions may only be

03

The Company’s stewardship actions include monitoring the operating status of the invested companies, attending the board of directors
and shareholders’ meetings, exercising the voting rights, and effectively communicating with the directors or managers of the invested
companies.

carried out after the head ofﬁce’s chief compliance ofﬁcer has signed and issued an opinion that the transactions
comply with the relevant laws and internal regulations.
2. Management of insider trading prevention

04

05

The Company voluntarily complies with the U.N. Principles for Responsible Investment (PRI), formulates responsible investment policies
and related investment processes, and integrates the risks and performance of the invested companies in the aspects of Environmental(E), Social (S) and Corporate Governance (G) into the investment evaluation and decision-making processes, so as to create long-termvalue. For domestic and foreign companies listed and traded on business premises, an external ESG agency will review the result fromthe assessment and implement necessary evaluation mechanism.

The Company has implemented a responsible investment process which oversees stocks, bonds, private equity and infrastructure funds
and other alternative investments, real estate, and evaluation of counterparties and investment service brokers, etc.

In addition to establishing a Code of Conduct for employees, the Company has also formulated a Management
Policy for Preventing Insider Trading, the contents of which are as follows:(1) Before engaging in any businesses, investments, or related activities that may constitute a conﬂict ofinterest between an individual and the Company, it is necessary to disclose the details to the unit supervisor
and relevant departments and to obtain approval. Employees should avoid situations where a conﬂict ofinterest may arise, such as negotiating or transacting with the Company for themselves or their relatives.
(2) It is not permissible to engage in activities that conﬂict with the interests of the Company through a third
party (including relatives, partners, and friends) in order to circumvent the above guidelines or relevant

06

In order to reduce the overall risk and maximize the return performance of the portfolio, the Company shall adjust asset allocation andmake investment changes according to the market environment, and refer to the relationship amongst assets and liabilities, risk tolerance,
investment risk and return, liquidity and solvency as the basis for decision-making, with the aim of enhancing the long-term interests of ourcustomers, shareholders, employees and stakeholders.

operating rules and regulations.
(3) Upon receiving any information that would have a material impact on the price of the securities ofa public company, after the information has been noted, and prior to the public disclosure of suchinformation or within 18 hours after its public disclosure, employees shall not purchase or sell, in theirown name or in the name of another, shares or any other equity-type securities of the company. In

The Company may entrust part of stewardship activities to other professional agencies (such as providing voting advice or voting on
behalf of the Company) based on an agreement or under the supervision of the Company in order to ensure that the entrusted agency
performs at the request of the Company.

addition, upon acknowledging any information that would have a material impact on the ability of the
public company to pay principal or interest, after the information is conﬁrmed and prior to the public
disclosure of such information or within 18 hours after its public disclosure, employees shall not purchaseor sell, in their own name or in the name of another, the non-equity-type corporate bonds of such a

0864

company that are listed on an exchange or over-the-counter market in order to receive improper beneﬁts
The Company’s performance of stewardship is disclosed on the official website and updated at least once a year.

or avoid potential losses.

2020 Sustainability Report0765

(4) Employees shall not directly or indirectly disclose any previously mentioned material information to others.

Management approach for material topic: Responsible investment and ﬁnancing

Stewardship and responsible investment(5) For the Company’s domestic equity product investment, relevant personnel shall be restricted from thefollowing conduct:•

Disclosing information known due to their position to others or engaging in trading activities.

•

Buying or selling for their own interests or the interests of the others when using insurance funds, or matchorders with the insurance industry without proper reason.

•

Promote the trading of individual domestic equity products in public places or media, or forecast the future

Policy andcommitment

price of individual domestic equity products.
•

Other conduct that may affect the rights and interests of the insurance industry or business operators.

3. Management of insider trading prevention for investment businessTo avoid even the appearance of impropriety, insider trading involving the trading of shares of a company that■Specificactions

are listed on an exchange or over-the-counter market, or any other equity-type securities of such a company,or the selling of non-equity-type corporate bonds of a company for which material information is involved insuch as notiﬁcation of the suspension of trading, lifting of the suspension of trading, and investment performance
evaluation and calculation of investment gains and losses in cases where transactions are suspended due torelevant internal regulations.
4. Prevention mechanism for conﬂicts of interest by domestic equity product investment-related personnel■

We support sustainable investment, with approved sustainable investments and financing
totaling NT$42.5 billion.
We support green finance, with approved investments and financing commitments totaling
NT$32.687 billion.

Short-term:
Align major investment projects with SDG classification standards.
Optimize our investee engagement mechanisms.
Increase our investment and financing position in relation to sustainable finance.
Strengthen our competencies in responsible investment and financing.
■

the handling of investment business, Company employees shall follow the Guidelines for Handling Investment
Business and Preventing Insider Trading when conducting business. The guidelines include control measures,

We practice corporate sustainability, voluntarily follow the spirit of the PRI, and incorporate ESG
considerations into our investment decision-making. We also formulate responsible investment
policies, review the ESG information of invested companies; evaluate whether investees have fulfilled
their environmental protection, ethical corporate management, and social responsibilities; andmanage our fund utilization in such a way as to fulfill our corporate social responsibility.

■

Targets■■

Long-term:
Develop ESG- and climate risk-related limits.
Continue to strengthen our proficiency in responsible investment and financing.
■■

To ensure the Company’s domestic equity investment personnel follow the principles of loyalty and good faith,
the Company has established a Prevention Mechanism for Conﬂicts of Interest of Domestic Equity Product
Investment-related Personnel, the main points of which are as follows:(1) Before engaging in domestic equity product transactions, these personnel shall apply for and obtain

Evaluation of responsible investment

approval from the relevant departments.
(2) These personnel shall regularly report any domestic equity product transactions between themselves anda spouse, minor child, or person under whose name they trade, and the relevant units shall check thereported information.
5. Code of Ethical Conduct and disciplinary measures
If a director, manager, or person with the authority to manage and sign for the Company violates the Company’s
Code of Ethical Conduct, the Company shall handle and announce the incident in accordance with the Company

Environmental protection

Enterprises have a social responsibility to maintain environmental ecology and support
resource regeneration. To these ends, the Company has introduced international standards onenvironmental assessments, actively supports energy transformation and the development of
the local green industry and is increasing its investment in renewable energy in order to protect
and conserve the environment and foster a sustainable home.

Act, the Articles of Incorporation, and internal regulations. If domestic equity product investment personnel violate
conﬂict-of-interest regulations, they will be disciplined according to the Company’s Employee Incentives andPunishment Measures or other relevant measures.
6. Disclosure of conﬂicts of interest
The Company shall, as necessary, summarize and explain to clients or beneﬁciaries the causes and handling of
the material conﬂicts of interest.
5.2 Responsible investment

Social care

Taiwan Life strictly abides by the human rights policy of its parent company and assesses thehuman rights protections and workplace safety of investment target companies and counterparties. In doing so, we honor the Universal Declaration of Human Rights, U.N. Global
Compact, U.N. Guiding Principles on Business and Human Rights, International Labour
Organization’s Declaration on Fundamental Principles and Rights at Work, and other principles
on social sustainability.

with the six principles of the PRI and in order to guide our daily operations. More than 100 employees from ourinvestment unit participate in our internal responsible investment operations and carry out our ESG investment
activities. Furthermore, we established a dedicated unit for sustainable investment in 2021, responsible for oursustainable investment strategy, policy formulation, and process optimization, and we actively participate ininternal and external forums and training activities.

66

Corporate governanceTaiwan Life reviews the corporate governance compliance and ethical management policies
and mechanisms of investment target companies and counterparties, and, if necessary,
assists them in improving their corporate governance through communication and engagement in order to forge a better business environment.

2020 Sustainability Report

We have formulated a Responsible Investment Policy and Responsible Investment Regulations in accordance67Responsible investment process<SASB:FN-IN-410a.2>

Stewardship and responsible investment

Taiwan Life has formulated corresponding responsible investment procedures for different investment types, anddetermines whether to proceed with investments or reduce investments based on the corresponding evaluation
results. For various green, social, and sustainability bonds, fund utilization reports are strictly reviewed to ensure thatfunds are used to support environmental sustainability development. The scope of responsible investment covers
stocks, corporate bonds, ﬁnancial bonds, private equity funds, infrastructure funds, building under construction (BUC)
cases, transaction counterparties, and investment service brokers. In the period between May 19, 2020, and Dec. 31,
2020, a total of 185 investments were made based on responsible investment assessment results.

Risk management for responsible investments
Taiwan Life maintains a list of prohibited industries for its investment portfolio based on its exclusion list andassessment of the level of involvement in material ESG issues. The ESG performance of an investment subject
is evaluated using an external ESG rating system, and the investment subject is reviewed using an ESG risk
assessment form. For enterprises that have failed to meet the standards, further engagement and communications
are deemed necessary in order to reduce the possibility of investing in high-ESG risk enterprises. Investment
amounts or the number of collaboration opportunities may be increased if improvements are observed after theengagement. Regular post-investment management is conducted to ensure that investment subjects regularly

01

Investment target selection

02

Exclusion list filtering

03
04
05

ESG evaluation mechanism
ESG engagement and communication•

Investment resolution

assessment.
2. Responsible unit(s) determine presence of risk and the need for further engagement and communication.
3. Derive ESG negotiation results and decide to proceed or withdraw from the investment.
Domestic and foreign unlisted stocks and funds
1. Check exclusion list, level of involvement in material ESG issues, and ESG risk assessment.
2. Responsible unit(s) assess risk mitigation and determine whether the risk may negative impact theenvironment or society.
3.Decide to proceed or withdraw from the investment based on the risk assessment.
•

Real estate
For BUC investments, Taiwan Life conducts a responsible investment assessment during the evaluationand design of the case, and energy, water, waste, and stakeholder participation, among other aspects, are

Evaluation item

Evaluation method

Exclusion list

Check whether an investment subject belongs to an industry on the Company’s exclusion list.

Level of involvement inmaterial ESG issues

Leverage the in-house ESG news database to search for potentially negative news related tothe investment subject. If the investment subject is involved in a major ESG issue, an ESG risk
assessment form is checked and follow-up engagement conducted based on the assessmentscore.

(Refer to 5.4 Engagement andvoting management)

External ESG rating
systemReference is made to ratings by global ESG rating organizations and by cross-checking with
the ESG performance evaluation of the investment subject. If the rating cannot be found or
is lower than the pre-determined level set by Taiwan Life, the ESG risk assessment form isreferred to.

ESG risk assessment
form

Public information on the investment subject is collected and assessed to elucidate all major
ESG issues and their related ﬁnancial impact. A comprehensive risk assessment is conducted
and support is given to the investment subject to adopt the GRI Standards during the
preparation of their sustainability reports.

Note: Due to technical and regulatory restrictions, this is applicable only for BUC investment cases and excludes the purchase or sale of completed properties handled by Taiwan
Life and related cases of its subsidiaries for special purposes.

Transaction counterparties and investment service brokers
1. Assess whether its investment policies and practices are in line with the spirit of Taiwan Life's Responsible
Investment Policy, such as formulating an ESG investment policy, signing or voluntarily complying with the
U.N. PRI, or annually assessing the ESG performance of its portfolio companies.
2. Conduct engagement if assessment standards are not met.

We examine whether investment service brokers or counterparties not listed in the external ESG rating system are
not applicable to the ESG risk assessment form in advance. We will further evaluate whether they have formulated
ESG-related policies or measures and determine the feasibility of them signing on to and abiding by Taiwan Life’s
Responsible Investment Policy. During the early stages of an investment proposal, we seek to gain a thoroughunderstanding of the potential investee’s ESG-related policies, supervise its ESG risk management, and evaluate
whether it is involved in an industry on the exclusion list or major issues of Taiwan Life. The investment trusts
and asset management companies that Taiwan Life currently collaborates with all have ESG-related policies
or measures in place, and they are required to report any major ESG risks of investment subjects to Taiwan
Life in their monthly or quarterly performance reports. In addition, to facilitate our management of real estate
construction investments, we require contractors and builders to issue regular reports on occupational health andsafety incidents.
Real estate investment risk management: Occupational health and safety reports
Section 1

Section 2

Implement real estate
construction projects
according to the healthand safety operation plan
approved by Taiwan Life.

The contractor is required
to inspect the health andsafety of the site every day
and produce reports.

01

02

Section 3
Record and control any
deficiencies and healthand safety issues, andissue rewards andpenalties accordingly.

03

Section 4

Section 5

Review and statisticallyanalyze health and safetyincidents and report them
regularly.

Strengthen the inspectionof specific items.

04

052020 Sustainability Report

evaluated with reference to the principles of the Global Real Estate Sustainability Benchmark.

•Risk management and evaluation for responsible investments

Domestic and foreign listed stocks and bonds
1. Check exclusion list, level of involvement in material ESG issues, external ESG rating systems, and ESG risk•

monitor their respective levels of involvement and ESG risk-related matters.

Verification by the responsible unit

06

68

3. Responsible unit(s) conduct risk evaluations and make decisions based on ESG engagement results.

69

Stewardship and responsible investment

Risk management process for external investment service brokers and counterparties

Investment assets in 2020
Asset classHas ESG-related
policyPrior to the transaction,
Taiwan Life investigates
the ESG-related policiesof the counterparty

Proceed with transaction

Report major ESG risks inquarterly/monthly reports

Willing to sign,comply, or engage

No ESG-related
policyRequest to sign orcomply PRI, conduct
self-assessment of theinvestment target’s
corporate ESG
performance, or proceedwith engagement

Decline to sign,comply, or
engageDeclinetransaction

Responsible ﬁnancing

Unit: NT$ thousand

Investment proportion in 2020

AmountFunds
StocksBonds

1,349,590,738

Funds

177,494,100

Stocks153,053,389

Cash and short-term
assets

96,333,612

Real estate

Real estate

85,779,137

Secured loans

Secured loans

27,430,215

Policy loans(including foreign
currency policy
loans)

25,342,125

Structured products

23,825,720

8%

9%

Cash andshort-term assets

5%

5%

2020

1%

Investment
proportion

Structured
products

1% Policy loans(including foreign
currency policy loans)

1%

Bonds

70%

Note: Data current as of Dec. 31, 2020.

In accordance with the Operating Regulations for Loan Credit Investigation, Approval, and Review, during thecredit review and due diligence process, borrowers are investigated to determine whether they have best-inclass ESG practices and sound credit underwriting and evaluations, and to conﬁrm whether they have beenprosecuted for any cases involving ethical corporate management and social responsibility. These ﬁndings are
required to disclose in the cover page of the credit approval package, so that all authorized supervisors candeliberate sound and proven decisions.
As a portion of ﬁnancing businesses are domestic small and medium-sized companies and individuals, negative
information ﬁltering is mainly used in the due diligence process, such as to check whether the companies
and representatives are involved in litigation, examine the general condition of the companies handling their

In terms of sustainable investments, Taiwan Life adheres to the asset allocation principles of its overall investment
portfolio, focusing on domestic and foreign bonds and project ﬁnancing. As of the end of 2020, the cumulative
approved investments in sustainable development totaled NT$42.5 billion. We are continuing to explore
investment subjects in order to support sustainable development as well as the government’s Green FinanceAction Plan 2.0 and “5 plus 2” industrial innovation policies.
Sustainable investments

employees’ labor pensions, and determine whether any negative information or news about the company has
been reported. For the post-investment management of these clients, the corporate entities, responsible persons,

Unit: NT$ thousand

Investment type

Description

Total

and guarantors shall be subjected to an interim review every six months after the transaction is approved inaccordance with the Guidelines for Review Management. Interim reviews are required to repeat the credit
investigation and evaluation of information related to changes in operating capacity, loan proﬁle and credit
records, anti-money laundering prevention, and ESG assessment.

■

STEP 01

Domestic

7,199,999

2,300,000-

Foreign

9,282,279

11,087,499

12,388,817

Public investment: solar power generation,
wastewater treatment, wind power
generation, and low-carbon natural gas
power generation
Infrastructure funds: green energy funds

9,543,694

5,748,875

2,198,875

Three offshore wind farm projects: Formosa
2 Wind Power, Changfang & Xidao, andØrsted subsidiary Mercury Taiwan Holdings.

16,459,062

12,959,062-

42,485,034

32,095,436

14,587,692■

STEP 02

STEP 03

STEP 04

STEP 05

STEP 06

ESG negative
information retrieval

Credit report
evaluation

Overall evaluationof credit approval

Loans tocustomers

Half-yearly casereview

5.3 Results of responsible investment<SASB:FN-IN-410a.1>

Equity and fundinvestments

making investments (domestic and foreign bonds), aiming to provide reassuring and stable income for the
insured and safeguard their rights and interests with downside protection. In 2020, Taiwan Life’s investment
assets totaled NT$1.9 trillion, with distribution by asset category as follows:■■

Financing

In recent years, Taiwan Life’s investment portfolio has focused mainly on long-term holding and stable proﬁt-

70

2018

Total

2020 Sustainability Report

Discussion withloan companies

2019

■

Responsibility ﬁnancing process

Recognized by the International CapitalMarket Association (ICMA) and meeting thestandards of foreign green bonds, social
bonds, or sustainability bonds.
Domestic bonds recognized by OTC as
sustainable bonds.
Issued by a bond issuer more than 50% of
whose production capacity or revenue is insustainability-related businesses/industries.

2020

Sustainable
bonds

71

Stewardship and responsible investment

Green ﬁnance

SDG investment

Long before adopting the PRI, Taiwan Life was actively involved

Taiwan Life leads CTBC Holding’s PRI task force,in green ﬁnance. We are among the ﬁrst in the industry to invest

coordinating the investment units of six subsidiaries

in solar power, which we have done since 2014, and we have(i.e., those of the banking, life insurance (including

astutely anticipated future market trends and best practices by investing in foreign private equity funds andproperty insurance and leasing), securities,

infrastructure funds. In 2018, we invested in Copenhagen Infrastructure Partners (CIP) in order to understandventure capital, securities investment trusts, andthe industrial development, risks, and practices of renewable energy. In 2019, we jointly established Taiwan

asset management subsidiaries) and periodicallyWind Investment Co., Ltd. with CIP to develop an offshore wind farm project toward which Taiwan Life

tracking performance with regard to each SDG. In

contributed NT$2.5 billion, representing approximately 43% of the equity. We also became the ﬁrst lifeits 390 equity and 318 bond investments at homeinsurance company in Asia to be directly involved in offshore wind farms. Later in 2019, we participated in theand abroad, Taiwan Life’s main priorities are SDG

Formosa 2 syndication loan for a 376-MW offshore wind farm off the coast of Taiwan’s Miaoli County, becoming

11 (Sustainable City and Communities), SDG 8

the ﬁrst life insurance company in Asia to champion such task in a project ﬁnance and for which we received(Decent Work and Economic Growth), SDG 3 (Good Health and Well-being), SDG 5 (Gender Equality), and SDG

six honors at The Asset magazine’s Triple A Infrastructure Awards, including ESG Investor of the Year.

10 (Reduced Inequalities). It is scheduled to add SDGs as an integral part of ESG investment evaluations in 2021.

As part of our commitment to sustainability, we have proactively responded to the government’s “Green
Finance 2.0 Action Plan”, focusing on investment in “Green Energy and Circular Economy.” For example, in
2015, we invested in a low-carbon natural gas power plant with a capacity of 490 MW and annual electricity
output of 2.1 billion kWh. This will reduce an estimated 230,000 tons of carbon emissions every year, withno heavy metal pollution harming the environment. Furthermore, we have invested a total of NT$318 million
in the construction of a wastewater treatment plant that, upon completion, will treat up to 31,000 tons ofwastewater every day.
Green investment and ﬁnancing in 2020

Unit: NT$ million

Accumulated approved
investment and ﬁnancing amount

Investment and ﬁnancing projects
Investments

Financing

Green bonds

16,228Formosa 2 Wind Power syndicated loan

6,000

Changfang & Xidao Offshore Wind Farms
syndicated loan

Mercury Taiwan Holdings syndicated loan
Total

Top 5 SDG investment goals
Percentage ofinvestment

Ranking

SDG1

SDG 11 Sustainable Cities
and Communities

2

SDG 8 Decent Work andEconomic Growth

27.1%

3

SDG 3 Good Health andWell-being

25.0%

4

SDG 5 Gender Equality

22.2%

5

SDG 10 Reduced
Inequalities

21.8%

31.4%

Note: The same investment subject may correspond to more than one SDG.

Engagement and communication in 2020

5.4 Engagement and voting management
Engagement and communication

Type of counterparty

No. of times

Domestic stocks

192

Foreign stocks

19

failed in the ESG assessment or not included in the ESG rating

Domestic funds

3

system, if needed. Our engagement methods include personal

Domestic project investmentcompanies

54

communication.

Discretionary investments

21

If a signiﬁcant ESG risk is identiﬁed during an evaluation, follow-

Real estate management
committee meeting
attendance

39

In accordance with our Responsible Investment
Policy and relevant operating procedures, we willconduct an engagement plan with investment subjects which

visits, online meetings, telephone interviews, and written

up communication is carried out. For investment entities thatdecline to communicate and reduce the risk in question, we

6,959

discontinue investment or gradually reduce our holdings. For less riskier investment entities, we communicate

3,500with their management or express our opinion by exercising our voting rights at shareholders’ meetings. We also

32,687

continue to communicate and track the ESG performance of relevant subjects, assess their risks, and track the
impact of engagement on them.
The Company holds regular meetings with its two partners that are investment trust and asset management

Beneﬁts of green ﬁnance in 2020

companies. The discretionary contract stipulates that the trustees must consider ESG performance wheninvesting and report to Taiwan Life in the event of a signiﬁcant ESG-related issue. For example, in 2020, theFormosa 2 Wind Powersyndicated loan■■

Changfang & Xidao Offshore
Wind Farms syndicated loan■■

Estimated annual carbon emission
reduction of 1.145 million tons
Equivalent of powering 618,000
households every year

■

■

Total
■

■

72

Estimated annual carbon emission reduction of 3.016 million tons
Equivalent of powering 1,628,000 households every year

Estimated annual carbon emission
reduction of 1.154 million tons
Equivalent of powering 623,000
households every year

Company communicated with the discretionary companies 21 times and attended real estate management
committee meetings 39 times. During that period, no major ESG-related issues were found.
Percentage of voting motions by category in 2020

8%

Financial issues

Corporate
governance

Personnel
organization

Shareholders'equityEmployeebenefits

Others5%1%1%Percentage ofvoting motions

41%

by category in 2020

44%2020 Sustainability Report

Estimated annual carbon emission
reduction of 717,000 tons
Equivalent of powering 387,000
households every year

Mercury Taiwan Holdings
syndicated loan

73

Engagement topics

invested company shareholder meetings electronically. Speciﬁcally, it participated in 207 electronically and 48 in

Stewardship and responsible investment

Scope

Issue

person, voting on a total of 1,117 motions.
If either of the following conditions is met, the Company may not attend a meeting to exercise its voting rights:

Environmental

Major environmental issues we look for are climate change and biodiversity. After the investment review, we avoid the following
industries: illegal logging, oil palm, coal mining, petroleum, and coal-fired power generation.

1.Taiwan Life holds less than 5% of the total number of shares issued by the invested company, and the2. The reason for not attending the meeting has been stated and approved by the responsible person.

SocialThe major social issues we look for are the protection of human rights in the workplace and occupational health and safety. If
negative news exists, such as regarding an occupational accident or sanction for violation of labor regulations or occupational
health and safety regulations, we check whether the investment subject company has any of the following violations before
continuing with investment: child labor or forced labor, any form of discrimination or differential treatment, death or serious
illness of workers due to overwork, major occupational accident, and negative news issues such as being sanctioned forviolating labor laws and regulations or occupational health and safety regulations stipulated by the government.

Corporate
governance

The major corporate governance issues we look for are integrity management and management suitability. During theinvestment process, we examine whether the subject company has been sanctioned for violating ethical corporate
management principles or has any negative news regarding ethical violations by board members or senior management.

purchasing cost of the shares was less than NT$1 billion.

Explanation on the exercise of voting rights
Explanation of
votes forIn respect of the professionalism of invested companies and to promote their effective operation and development, we in principle support motions proposed by their management.

Explanation ofabstentions

According to Article 146-1 of the Insurance Act, insurance enterprises cannot vote in the election of directors or
supervisors of investee companies. Therefore, we abstain from voting on motions on the election of directors andsupervisors.

Explanation of
votes against

We do not support proposals that hinder the sustainable development of an invested company or violate Taiwan Life’s
Responsible Investment Policy (i.e., proposals that hinder sustainable environmental, social, or corporate governance).
In 2020, we voted against four venture capital companies’ resolutions regarding a “Venture Capital Entrusted
Operation and Management Contract.” We did so in order to urge these companies to expedite the disposal ofexcess assets, which had already exceeded the contractual period, in order to protect the investment rights andinterests of shareholders.

Example responsible ﬁnancing evaluation in 2020

Financing project

Reason(s) for deviation

Follow up actions

A. Judicial disputeinvolving a
construction anddevelopment
project and a
representative

The construction company was involved in a disputewith the government relating to a development project,
and that company’s representative was accused ofbribing public servants and involved in other judicial
cases. These lawsuits attracted public criticism, casting
doubt on the ESG of the company during Taiwan Life's
interim review of it.

In consideration of factors such as the company’s soundfinancial structure, the forthcoming attitude of the new company
representative to accept responsibility for the disputes,
successful transactions with the company in the past, and thatthe value of the collateral had not been devalued, it wasdetermined during the interim review to continue the business
relationship with the company but to keep it under close
observation.

B. Construction
real estate-backed
financing case

The collateral of this corporate borrower was foundto be located on a dip slope, triggering outcry amongresidents in the surrounding communities over thesafety of the construction development. This negative
ESG information thus raised concerns from Taiwan
Life during the financing process.

In consideration of the social responsibility and environmental
sustainability issues involved, the loan application was declined.

It was established that the principal shareholders andultimate beneficiaries of this corporate client were
either on the watch list or poor bond credit rating listof parent company CTBC Holding and thus deemed
high-risk customers. This raised ESG-related concern
in Taiwan Life during the credit review assessment in
the financing process.

Issues related to poor corporate governance were identified,thus the loan application was declined.

C. Construction
real estate-backed
financing case2020 voting results
Classiﬁcation of
motions
FinancialissuesEmployee
beneﬁts

Shareholders’equityVoting policy and ownership
In order to fulﬁll our stewardship responsibility as an institutional investor, Taiwan Life has formulated and follows
operating procedures regarding the exercise of its voting rights. As a matter of principle, to protect the rights andinterests of customers and maximize the interests of shareholders, we actively attend the shareholders’ meetingsof invested companies. Before each meeting, we carefully evaluate the motions on the agenda and related

Corporate
governanceunderstanding of each motion.
In addition to attending meetings in person to cast votes, we also exercise voting rights through electronic voting.
In principle, the Company exercises its voting rights in order to express its opinions on a motion. To thisend, Taiwan Life may evaluate whether a motion will impair the rights and interests of the proposer, insured,
beneﬁciaries, or shareholders, but ultimately whether to support a motion is at its discretion.
In 2020, due to the impact of the pandemic, the Company participated in most of the 255 domestic and foreign

74

Personnel
organization
OthersTotal votes

For

AgainstAbstainApproval of business reports and ﬁnancial
statements

222

222

0

0

Earnings distribution or loss offsetting

236

236

0

0

Issuance of new shares with restriction of
employees’ rights

12

12

0

0

Issuance of employee stock options below
market price

3

3

0

0

Transfer of treasury stock below average
repurchase price

0

0

0

0

Company dissolution, merger, acquisition,
share transfer, or division

14

13

0

1

Capital increase (retained earnings, capitalreserves, dividend distribution, or cash as
capital for issuance of new shares)

27

27

0

0

Private placement of securities

8

8

0

0

Capital or cash reduction (for offsetting losses
or cash refund)

9

9

0

0

Amendment of articles of incorporation oroperating procedures

343

342

0

1

Lifting the ban on directors from participatingin competing companies

143

141

0

2

Execution of the right to recover short-swing
proﬁt from statutory insiders

0

0

0

0

Election of directors and supervisors

84

7

0

77

Dismissal of directors and supervisors

0

0

0

0

Other
Total

16

11

4

1

1,117

1,031

4

82

100%

92.30%

0.36%

7.34%

Note: For domestic companies in which Taiwan Life had an equity investment in 2020, the total number of voting rights exercised was 247.

2020 Sustainability Reportdiscussions. If necessary, we inquire and communicate with the management before a meeting to gain further

Major resolutions

75

06

Accountable
Operations

Diverse talentdevelopment
Our workforce is the foundation of our corporate operations, and assuch, diverse talent development is critical to Taiwan Life’s growth.
Our parent company, CTBC Holding, entered the insurance market
10 years ago, subsequently seeing three major mergers andacquisitions (MetLife, Manulife, and Taiwan Life) in four years.
Through an effective talent integration policy put in place after these
reorganizations, the outstanding talent of these three companies
were quickly integrated into the Company and other talent fromacross the industry was recruited to create new profit peaks.
Fintech has subverted the traditional models of financial services.
Our business development strategy is thus emphasizing digitaltransformation, such as by actively creating an environment suitablefor digital talent, cultivating digital professionals, and accelerating theimprovement of our customer experience and service efficiency. In
order to adopt IFRS 17 in advance of being legally required to do so
and to improve our asset-liability management methods, we are
actively cultivating cross-domain professionals, ensuring that therelative impact of future adoption can be minimized and thus
supporting sustainable operations.

12.8% drop in turnover
By offering better employee benefits, more competitive
remuneration, and a friendly and healthy workplaceenvironment, the average turnover rate of office staff in2020 was 16.0%, down 12.8% from 2019.

19,100 participantsin ESG-related courses

In 2020, we organized ESG courses such as environmental management, legal compliance, and corporate
governance, with a total of 19,100 participants.

76

77

Diverse talent development

workplace environment. In the past three years, our turnover rate has decreased significantly, with an average

6.1 Talent recruitment and cultivation
Overview of employee structure
As of the end of 2020, Taiwan Life’s employees totaled 9,401, comprising 1,862

Office staff

1,862

office staff and 7,539 field staff, and with women accounting for 65.1% of all

Field staff

7,539

New hires and turnover of office staff

Total

9,401

2020

Number of employees

staff. We provide an equal-opportunity employment environment, including
for indigenous people, those with a physical or mental disability, and foreign

nationals, in order to foster a diverse workplace. In 2020, we employed 9 indigenous employees and 13

turnover rate of 16.0% for office workers in 2020.

2019

Women 16.6%

employees with a physical or mental disability.

Women 21.3%

New office
staff hires

Employee profile
Office staff

Field staff

Men 18.9%

General employees

Total: 1,136

89

1,047

3,709

TaiwanTotal: 725

96 629Total: 0

1,047

Total: 1

1

Overseas

1,275
616

1,939

New office
staff hires

Total (Men): 137
Total (Women): 189

Total: 4,984

Men

61

Women

77

72

4
103

Office staff
turnover9

General employees
Management
Total
Field staff
General employees
Management
Total

30 or younger
615
85
700

76

Women

108

31–49
681
51
732

Women
31–49
1,798
605
2,403

50 or older
163
38
201
50 or older
1,296
585
1,881

30 or younger
126
0
126

Men

25

68

Women 37

30 or younger
585
104
689

Men

31–49
375
59
434
Men

31–49
910
321
1,231

50 or older
128
38
166

98

4
116

Total (Men): 173
Total (Women): 185

Men

21
125

23

17

Total (Men): 233
Total (Women): 185

Men

91

Women

101

135

7

47

Women 66

106

Office staff
turnover
Women
31.5%

31~50

Women 35.0%
Men

20
232

57

201

Men 37.5%

Office staff
turnover30 or younger

Women

Men 33.4%

Men 24.6%

Women
16.3%

Age distribution of employees
30 or younger
203
0
203

Men

Total (Men): 114
Total (Women): 185

Total: 0Note 1: Management refers to supervisors who are responsible for supervision and management at or above the section chief level.
Note 2: All employees of Taiwan Life are full-time employees.

Office staff

Total (Men): 178
Total (Women): 185

Men15.7%

Total: 0

1,939

Men 25.4%

Women
29.0%

New office
staff hires

Management

Total: 2,555

3,709

2018

59

Total (Men): 262
Total (Women): 185

78

Women 80

150

34
285

68

51 or older

Management associate program
In addition to recruiting financial professionals, Taiwan Life has held an annual management associate (MA)program to recruit cross-disciplinary talents with diverse fields of expertise and nationalities and who display the“SMART” abilities of being savvy, mobility, ambitious, resilience, and a team player. The MA program offers us

50 or older
444
191
635

Note: Management refers to supervisors who are responsible for supervision and management at or above the section chief level.

insight into the core development opportunities in the insurance field and provides a steady stream of investment
and insurtech talent, laying a strong foundation for our future insurance business operations.
Internship program
Industry–academia cooperation is another important business direction of Taiwan Life in terms of talent
recruitment policy. We cooperate with Chengchi University and CTBC Business School to provide internship

Talent recruitment
In order to smoothly adopt IFRS 17 and grasp the opportunities posed by fintech, Taiwan Life’s
overall talent recruitment strategy focuses on cross-domain, digital transformation talent. We actively
recruit financial professionals in business planning, data analysis, and commerce application for pre-emptive
preparation to enhance our competitiveness. In 2020, the total recruitment-related expenditure of Taiwan Life was
NT$4,647,951.
Since joining the parent company, CTBC Holding, in 2015, we have planned better employee benefits, provided
a more competitive remuneration system, and created a solid talent foundation with a friendly and healthy

78

opportunities to allow outstanding students to get real-world corporate experience and apply what they havelearned. Furthermore, after graduation, many interns are provided with employment opportunities; of those who
participated in the 2019 internship program, nine went on to take up employment positions in the Company. In
2020, we organized a two-month learning course focusing on the fields of products, actuarial, data analysis,
digital finance, and business planning. All interns had a section-level supervisor as their internship tutor for oneon-one guidance, with our focus on practical projects bridging the gap between academic theory and practicalwork and offering the interns a comprehensive professional learning experience. In 2020, a total of 17 students
participated in our internship program.

2020 Sustainability Report79Diverse talent development

On-campus recruitment

Salary status of full-time non-managerial employees

We hold campus recruitment activities in March and April every year, mainly for our MA program and our CTBC
Business School job-matching program. The MA program is promoted through campus exhibitions and campus

Unit: NT$

seminars, with interactive activities and games organized to effectively engage students while raising their

2020

2019

2018

1,695

1,719

1,755

Average salary

1,301,190

1,273,946

1,104,244

Median salary

1,079,697

1,030,779

921,946

understanding of our corporate identity. For CTBC Business School employment matching, we invite CTBC
Business School alumni to give speeches to share their work experience at Taiwan Life. In 2020, a total of 17 MA
program enrollees and CTBC Business School students were recruited to work in Taiwan Life.
Employee remuneration system
Taiwan Life’s offers competitive remuneration, with a range of diverse and fair packages that include
a performance bonus, employee remuneration, employee stock appreciation rights, and employee
welfare savings. Through this remuneration framework, key talent can be retained.
We uphold the principles of fairness and equality in the distribution of all benefits and awards. We do not haveengaged in differential treatment or discrimination on the basis of gender, ethnicity, age, religion, politicalstanding, marital status, or nationality. In order to maintain internal fairness and external competitiveness, weEmployees

Note 1: “Total salary” refers to the employee’s salary for the current year, based on the accrual of rights and responsibilities and including recurring salary (basic salary and monthly
fixed allowance and bonuses), overtime (whether taxable or tax-free), and non-recurring salary (e.g., non-monthly allowance, bonuses, and employee remuneration).
Note 2: “Full-time non-managerial employees” refers to all employees excluding those in managerial positions, employees in overseas branches, part-time employees, and other
employees who meet the criteria for exemption.

conduct market compensation surveys every year; adjust remuneration according to market compensation levels,
economic trends and personal performance; and adjust the internal remuneration system as necessary.
In addition, we conduct a performance management review every year to accurately understand the work
performance of our employees. As well as the necessary internal control, legal compliance, and compliance withManagement approach for material topic: Employee rights and benefits

information security, the audit indicators of each unit can include comprehensive indicators such as cost control,
personal improvement and team management, as well as ESG performance. Through management by objectives(MBO) and in combination with the Company’s strategic targets and organizational culture, the supervisor andemployees jointly formulate development plans and individual performance goals (MBO) at the beginning of theyear, which are reviewed and revised in the middle of the year. At the end of the year, feedback and evaluation

Policy andcommitment

We focus on the rights and benefits of employees to help them strike a healthy work–life balance. We
provide our employees various welfare and rights protection measures and care for their daily needs.

are given on the achievement of various targets.
Diverse, long-term incentives•

Performance bonus: The bonus encourages employees to strive to achieve the Company’s operating
objectives and is determined by taking into account unit performance, personal performance, compensation

Specificactions■■■level, position value, and job duties according to the Company’s revenue performance and market

Provide diverse employee benefit programs.
Conduct employee opinion surveys and listen to employees.
Foster labor–management communication and create a harmonious working environment.

competitiveness.
•

Employee remuneration: To encourage employees to fulfill their potential and improve their businessperformance, this employee remuneration is allocated annually according to the relative contribution of theirposition and personal performance appraisal.

•■

Targets■

Maintain harmonious labor–management relations, provide diverse and open channels ofcommunication, and establish a legally compliant personnel management system.
Continue to provide a friendly, equal-opportunity workplace that is free from discrimination, including on
the basis of gender.

Employee stock appreciation rights: A long-term incentive with a three-year deferral period, thus tying it to theCompany’s long-term operational performance as an employee retention strategy.

•

Employee welfare savings: Employees may set aside a certain amount every month, and the Company will
allocate a subsidy for the purchase of CTBC Holding shares that will be placed in a trust.

In 2020, the total number of full-time employees in non-supervisory positions of Taiwan Life was 1,695, withtotal salaries in 2020 of NT$2,205,517,413. The average salary of full-time non-managerial employees has been
increasing over recent years, with their median and average salaries as follows:
We provide various subsidies and protections to help our employees strike a healthy work–life balance. In
addition to fulfilling the provisions stipulated by basic laws and regulations, we offer cash gifts and bonuses for

80

major holidays and birthdays; subsidies for marriage, family funeral and childbirth; long-term service, retireecare, health care, education and entertainment benefits; preferential mortgage rates; and credit loans and groupinsurance. We also offer a points-based rewards system, which enables employees to redeem their points for
products and services including daily necessities, gift coupons for department stores, food coupons and 3C
household appliances, etc.

2020 Sustainability Report81Diverse talent development

Overview of employee benefits

Unit: NT$

Employee benefit

Total in 2020

Cash gifts for major holidays
and birthdays

Chinese New Year, Dragon Boat Festival, Mid-Autumn Festival,
birthdays

55,101,000

Marriage, family funeral, andchildbirth subsidies

Marriage subsidies, family funeral subsidies, wedding andfuneral decoration supplies, childbirth subsidies

4,117,800

Long-term service benefits

Senior employee recognition, diamond holiday, golden holiday

4,253,693

Retirement souvenirs, retirement dinner party

122,780

Health check7,106,397

Medical subsidy for hospitalized dependents

5,121,721

External psychological consultation cooperation project(Employee Assistance Program)

81,841Children’s education scholarships

2,179,500

Certificate subsidy project

110,700

Flexible benefits

15,796,806

Massage service

957,000

Retiree care benefits

Health care benefits

Educational subsidies

General perks

Office staff development
Taiwan Life is committed to cultivatinga high-quality workforce, enhancing
the basic competencies of all staff,

Course nameCourse topics

Course content

Participants

4

Through Harvard case discussions, decision-making methods are introduced
and participants learn how to conduct group decision-making so as to leveragepotential synergies and avoid adverse effects.

163

2

Renowned expert Logan Hsu gave these lectures on innovation, including onpractical innovative thinking skills. Participants learned that innovation “is not awild horse” and can indeed have an SOP, and that a common language ofinternal innovation can be established to enhance the innovative capacities ofan organization.

167

9With courses designed for different positions from the president to section
chiefs, this course taught agile thinking and practical agile development
methods. By establishing review communication groups during the course,organizing after-class discussions, and encouraging participants to solve
real-world problems with the instructor, the course fostered an agile culture ofinnovation and efficiency in Taiwan Life.

235

Harvard Case
Discussion,
Decision-making
Tools

Changing the
Future throughInnovation

Agile
Development
Education andTraining

Average annual office staff training

Unit: Hour

2020

2019
50.5 50.5

Topic-based education and training courses in 2020
Satisfaction rating(out of 5)

Sessions

2018

42.9

36.2
25.8

19.6

21.1

32.0

18.0

16.3 16.3

Changing the future through innovation

4.86

Problem analysis and solving

4.78

Orientation training

4.87

Innovative thinking strategies for new trends

4.87

General employees

Management

General employees

Management

General employees

Management

grades in different positions; we then use theTeam decision management

4.56

Average (Women): 22.1

Average (Men): 25.0

Average (Women): 18.3

Average (Men): 19.1

Average (Women): 15.6

Average (Men): 19.9

results to determine talent gaps and plan training

Team leadership influence

4.63

results also aid us in identifying potential talent,

Rational thinking skills

4.87

the work rotations, project experience, andAverage satisfaction

4.70

and nurturing potential talent in order to support
the Company’s overall strategy. Every year, we
use objective assessment methods to conduct
a talent inventory for all key duties and positions
and define the core competencies of different

resource allocation accordingly. The inventory

professional/management training resources
for whom are provided to optimize their career

progression, thereby effectively improving the effectiveness of our training system.
In 2020, Taiwan Life’s staff education and training expenses totaled NT$6,449,246, with 5,047 participants in generalcourses and 19,100 participants in ESG-related courses. In addition, we organized cross-unit and cross-domain
project teams, cooperated with professional consulting companies, carried out professional training activities, planned
agile development courses, implanted transformative thinking, created a common language for team communication,
and accelerated the achievement of project milestones. Satisfaction questionnaires are conducted prior to thecompletion of training courses to elicit participants’ suggestions and feedback for reference in future curriculum
planning. In the courses held in 2020, the overall average satisfaction rating was 4.7 out of 5.

82

Education and training course highlights

14.8

Women Men

Women Men

Women Men

Women Men

Women Men

Women Men

Note: Management refers to supervisors who are responsible for supervision and management at or above the section chief level.

Field talent development
To elevate the professional competencies of our agents, we have launched the Superorganic Taiwan
Life Agency Reactivating System (STAR). This business training program covers product knowledge,
licensing and certification lessons, customer needs identification, policy consultations, and customer service andprovides three levels of training: basic, advanced, and premium.
For field business supervisors, tour training start with junior supervisors, strengthening their management
skills step by step through agent recruitment and scouting, agent cultivation and guidance, and operating
management. Through this standardized, systematic, and professional training system, field supervisors will beequipped with comprehensive understanding of business and insurance development concepts.
Overall, the average STAR training of our field agents exceeds 30 hours. By providing financial subsidy for
obtaining certificates, we encourage field agents to enrich their financial and insurance knowledge, so they canconvey precise insurance information to the policyholder.

2020 Sustainability Report83Diverse talent development

Average annual field staff training and expenditure

Unit: Hour

2020
Men

2019
Women

Men

2018
Women

Men

Women

General employees

36

31

39

35

44

35

Management

31

27

32

30

38

34

Average

34

30

37

34

43

35

Annual training expenses

NT$7,385,340

NT$8,963,540

NT$8,437,726

Note 1: Management refers to supervisors who are responsible for supervision and management at or above the section chief level.
Note 2: In 2020, due to the impact of COVID-19, many planned physical courses were cancelled or changed to online courses. We expanded our training resources accordingly,
such as live broadcasts and our e-learning platform, in order to provide employees with a diverse learning environment free from time and space requirements.

To elevate the professionalism of our agents, we have been actively promoting and transforming our digitallearning offerings. In addition to physical courses, we provide a diverse range of learning channels. Through theonline courses on our e-learning platform and video clips available through our TOP Channel video platform, ouragents can increase their study frequency and thus leverage learning synergies and achieve continuous learning.
Agents can register for and take classes online for subjects ranging from compliance to products to certifications.

01

Comply with therequirements ofrelevant regulations
and obligations, andimplement asafety-driven
procurement strategy.

02

Conduct regulareducation and training
to raise awarenessregarding occupational
health and safety.

03

Integrate relevant
resources andimplement a plan toeliminate hazards andrisks.

04

Continually improve
workplace health andsafety, with regularreviews to achieve thegoal of a friendly
workplace.

05

Expand and leverage
the influence of theCompany to encourage
surrounding enterprises to participate in theformation of an
ecosystem that values
occupational safety.

Employee communication and surveys
We conduct regular employee surveys. The most recent such survey, in 2019, received valid responses from 1,483
employees, with a response rate of 97%. The survey is designed to accurately gauge the opinions of employees,
comprising questions on 18 topics from organizational, strategic, and management perspectives. Throughregular follow-up surveys, we evaluate employees’ perception of corporate culture and the effect on their conductof corporate culture-related activities. To further elucidate any gaps in values between employee groups (e.g.,
by unit, length of service, age, or job level) and industry standards, we track changes in their engagement levels
and formulate action plans for “customer care,” “performance management,” and “work–life balance” in order toprovide them with a better workplace experience and support sustainable, long-term organizational performance.

In 2020, 149 online courses were conducted, the accumulated learning hours for which reached 240,773.8 hours.
With internet access, agents can learn anytime through various devices, including smartphones. In 2020, 623
people completed the training for the qualification certificate for life insurance agents, 596 people completed the

Employee surveys

training for the sales certificate in foreign currency-denominated non-investment-linked life insurance products,
and 592 people completed the training for the sales certificate for investment-linked insurance products.

Listen to employees

Collect employees’ opinions on the Company’s policies and organizational operations
through regular surveys.

Measure corporate culture

Gauge employees’ recognition and practice of the Company’s corporate culture and five
major values.

Implement action plan

Work to enhance the management performance of all levels and to foster a stronger
identification among employees with the Company’s culture.

Track activity effectivenessCompare results with those of previous surveys to track the effectiveness of the action plan.

E-learning platform participants and learning hours
Item / year

2020

2019

2018

Online courses

149

155

102

Learning hours

240,773.8

309,541.5

261,244.5

Note: Extra compliance courses were added in 2019 in accordance with government policy, and the study hours of field staff for the year increased as a result.

6.2 Employee rights and workplace healthTaiwan Life continues upholds CTBC Holding’s “We are family” brand spirit, corporate mission toprotect and build assets, and brand values of being caring, professional, and trustworthy. In doing so,
we adhere to the five values of integrity, innovation, professionalism, teamwork, and care and prioritize the safetyof our employees.
To provide our employees with the best possible working environment, we have a three-pronged commitment
to “Risk-based thinking,” “A healthy future,” and “A culture of safety.” These guide our efforts to ensure healthyand safe working conditions, prevent injuries and adverse health effects in the course of our business activities
and services, reduce workplace hazards, actively implement occupational health and safety performance
management, and reduce occupational health and safety risks. Specifically, we are working to:84

In addition, we hold labor–management meetings (at least one every quarter) to report labor trends and an
overview of business operations, discuss labor–management-related issues, facilitate communication anddialogue between labor and management, and engage in consensus building.
We also maintain a channel for employees to lodge and appeal complaints. This provides an easy means for
employees to smoothly resolve issues they face, thus fostering a happier, more harmonious work environment.

2020 Sustainability Report85Diverse talent development

Overview of labor–management communication in 2020
Communication frequency

Key issues discussed■

5 labor–management meetings

Taiwan Life regularly maintains and updates its workplace health and safety facilities. These efforts have included■■

Discussion of work rule changes
Number of employees
Business overview■■

Changes in management representatives
Changes in labor representatives

Outcome of communication

introducing an Employee Assistance Program to let employees work in a healthy work environment so that theirComplete revision of work rules

employees can take a break and enjoy the services of a professional massage therapist for only a small fee,

Note 1: Labor–management meetings are attended by eight representatives from each side. Of the labor representatives, six and two are from office and field staff, respectively,
and more than a third are women.
Note 2: In 2015, the Taiwan Life Labor Union signed the first collective agreement in Taiwan’s life insurance industry to protect the rights and interests of employees, with acoverage rate of 8.35%.

bodies and minds can be relaxed in a timely manner. We have also set up a massage service station where
which is donated to the CTBC Charity Foundation.
Workplace health and safety measures and effectiveness
Category

Measures and results

A healthy workplace
Since 2016, our Head Office, Taichung Branch, and Kaohsiung Liuhe locations have successively obtained■

Healthy Workplace Certification and Health Promotion Workplace Certification, while the Tainan Branch has
obtained Healthy Start Workplace Certification. In order to promote employees’ health and improve their work■

efficiency, the Company also encourages employees to establish regular exercise habits, and has received the
Taiwan i Sports Certificate of Corporate Wellness from the Sports Administration every year since 2017 for its
efforts to implement health awareness activities.
In terms of mental health, we have set up a workplace harassment complaint mailbox to provide an accessible,■■

Healthy work
environment■■transparent complaint channel for employees and protect them from abuse of power and unfair treatment.

We maintain barrier-free spaces, with barrier-free toilets and ramps on each floor andwidened first-floor entrance gates.
Access control ensures office areas are accessible only by relevant personnel.
Healthy office lighting, constant CO2 detection, and semiannual workplace disinfection.
There are 30 automated external defibrillators across our locations, and 43 seminars on
their use and on CPR were held in 2020.
We promote a smoke-free workplace and have prohibited smoking in office areas.
All employees are equipped with adjustable-height seats to increase their comfort andprevent backaches.

Furthermore, a dedicated medical team has been assigned to formulate annual health management plans andhealth promotion activities, including annual health checkups, on-site doctor consultations, health seminars,
blood donation drives, and physical fitness activities. These are all based on the analysis results of employee
health examinations and health management effectiveness and organized using the combined resources of theCompany, public authorities, and cooperating supply partners. We provide care and follow-up for employees with■abnormal health examination results and potential health risks that warrant further health consultations, in order tohelp them bring their test results back within normal range or effectively control their diseases.

■

For our workplace health activities held in 2020, the overall satisfaction was 96%. Twenty-four on-site doctor
consultations were held, distributed at our locations around Taiwan according to the distributions of our■employees, with a total of 275 people receiving consultations. The team of doctors and nurses also formulated ahealth protection plan to improve employees’ health and raise their awareness to enable them to engage in selfhealth management, with areas of focus including ergonomic and musculoskeletal issues, maternal health, andWorkplace benefits

unhealthy workloads.

■

Workplace health activities■

Activity
On-site doctor
consultations

Workplace healthseminars

Health promotion
activities
Health education

86

■

2020

2019

2018

Sessions

24

17

16

Participants

275

142

145

Satisfaction rate

95%

98%

98%

Sessions

98

32

30

Participants

4,000

1,280

1,166

Satisfaction rate

96%

92%

95%

Sessions

155

78

37

Participants

4,774

3,043

1,341

Satisfaction rate

98%

99%

98%

Articles

39

22

18

■

Employee healthcheckups andhealth promotion
plans

■

Nursing room: Both the head office and branch offices have set up nursing rooms, whichwere used by 76 people in 2020 and have received Nursing Room Excellence Certificationfrom Taipei City’s Department of Health.
Medical room: A medical room is located in the head office, providing a private and safe
environment where employees can ask questions about health education. They are also
equipped with blood pressure monitors, scales, and beds.
Massage service: Employees can enjoy the services of a professional massage therapist at
our massage station for only a small fee, which is donated to the CTBC Charity Foundation. In 2020, 1,349 people used the service, contributing NT$67,445.
Employee Assistance Program: This program nurtures employees’ physical and mental
health through health assessments, online testing, and consultations.
Sports discounts: We provide occasional information and ticket discounts for sporting
events.
The employee cafeteria serves meals every workday, including Chinese, Taiwanese, andJapanese set meals, all using porcelain, stainless steel, and other environmentally friendlytableware in place of single-use products.

We provide public holiday and health checkups benefits superior to those required by law.
Employees aged 40 and older receive a paid checkup every year, while those under 40
receive one every two years.
Employees whose checkups place them in a high-risk group and those with long work
hours receive follow-up screenings and have health promotion plans tailor-made by medical
staff.

2020 Sustainability Report87Diverse talent development

Unpaid parental leave

In 2020, 10 people applied for occupational injury leave and 160 days of occupational injury leave were

To ensure its employees can achieve a healthy balance between work and family, Taiwan Life encourages staff

granted. Of those people, 5 were injured in traffic accidents on the way to or from work, 4 cited a fall during a

to apply not just for paid parental leave but unpaid parental leave, too, from both of which they can return to workbusiness outing, and 1 was injured when improperly carrying an object. In 2020, we received no disability injury

at any time. In 2020, a total of 61 employees were eligible to apply for unpaid parental leave; 13% of eligible

notifications from contractors.

men and 57% of eligible women did so. Seventy-five percent of employees who had taken unpaid parental leave
returned to work in the Company in 2021. In addition, we offer a NT$4,000 childbirth subsidy per child, andissued a total of NT$324,000 in such subsidies in 2020.

Year

Unpaid parental leave in 2020

A Eligible to apply for unpaid parental
leave

Unit: People

B Applied for unpaid parental leave

24

reinstated after unpaid parental leave

0
21

27

D Actual number of employees

E Returned to work after unpaid parental

F Worked for more than 1 year after

0

0

0

reinstated after unpaid parental leave

leave in 201915
Application rate: B/A

returning to work12
Men 13%

Women 57%

Reinstatement rate: D/C

9
Men NA

Women 56%

Retention rate: F/E

Men NA

Women 75%

Occupational health and safety management
Taiwan Life adopted ISO 45001 Occupational Health and Safety Management System standards in 2019 withthe goal of achieving 100% certification across its locations. We have established an Occupational Healthand Safety Committee; it convenes every quarter and is charged with reducing workplace safety risks andmaintaining a healthy and safe work environment. We have also designated three occupational health and safetyadministrators, 6 nurses, 14 business supervisors, 19 fire prevention administrators, and 66 first-aid personnel tobuild a complete occupational safety net to reduce workplace hazards as much as possible. In addition, there
are a total of 30 automated external defibrillators in the head office, branch offices, self-owned buildings, andcommunication offices to ensure emergency first-aid can be carried out immediately if necessary.

88

2020

2019

2018

Gender

Men

Women

Men

Women

Men

Women

Total workdays

176,296

280,449

172,845

292,876

174,288309,800

Employees with adisabling injury

3

7

2

11

2

4

Lost days due to adisabling injury

89

71

3

57

206

124

Disabling injury
frequency rate

0.82%

1.92%

0.54%

2.95%

0.52%

1.03%

Disabling injury
severity rate

24.36%

19.43%

0.81%

15.3%

53.19%

32.02%Disabling injury
absence rate

38.97%

31.09%

1.29%

24.48%

85.11%

51.23%

Absence rate

0.019%

0.016%

0.001%

0.012%

0.043%

0.026%C Number of employees eligible to be

3
37

Occupational hazard data

Note 1: Persons with a disabling injury = number of employees who were temporarily unable to return to work due to a work-related injury.
Note 2: Lost days due to a disabling injury = days when employees were temporarily unable to return to work due to work-related injury.
Note 3: Total hours worked = total number of employees × number of hours worked per day × actual number of days worked in a year; total workdays = total number of employees
× actual number of days worked in a year.
Note 4: Disabling frequency rate = number of employees with a disabling injury × 1,000,000 / total hours worked.
Note 5: Disabling severity rate = number of days lost to a disabling injury × 1,000,000 / total hours worked.
Note 6: Disabling injury absence rate = total number of lost days due to a disabling injury / total workdays × 200,000.
Note 7: Absence rate = days absent / total workdays × 100%.

2020 Sustainability Report

89

07

Accountable
Operations

Sustainable
environmental
commitment
Taiwan Life actively promotes energy conservation, carbon
reduction, and environmental sustainability in order to minimize thenegative impact of its daily operations on the environment. Startingby focusing on our energy conservation and carbon reduction as
well as our resource management, we organize relevant training
courses, advocate environmental protection issues, regularly review
our energy and resource utilization, and introduce various environmental and energy management projects. We are also expanding
our procurement of products with energy-saving and environmental
protection labels and leveraging our supply chain to foster the widerpractice of environmental sustainability.
Furthermore, in accordance with CTBC Holding’s Environmental
Sustainability Policy, we have established an Environmental
Sustainability Management Manual to promote efforts such as ISO
14064-1 Greenhouse Gases Inventory, ISO 14001 Environmental
Management Systems, and ISO 50001 Energy Management
Systems adoption and to realize our various environmental
commitments.

National Golden Award for Architecture
dual prize winner

Our build–operate–transfer project for the Cultural andCreative Industries Hall in Kaohsiung Main Public Library
won the top prizes for “planning and design” and“construction quality” at the 22nd National Golden Award
for Architecture event.

100% of suppliers signed ESG
commitment
All of our suppliers have signed the CTBC Supplier Human
Rights and Environmental Sustainability Commitment, andwe regularly hold supplier sustainability meetings.

Gold EEWH Green Building Candidate
The development project in Taipei City’s Nangang Districtobtained a Gold EEWH Green Building Candidate
Certificate.

90

91

Sustainable environmental commitment

100% ISO certiﬁcation coverage rate

7.1 Green operations
Environmental Sustainability Policy

Management system

Coverage

ISO 14001 Environmental Management Systems

10 sites, namely head ofﬁce, 7 branches, and self-ownedbuildings

ISO 50001 Energy Management Systems
ISO 14064-1 Greenhouse Gas Quantification and Reporting
Make continuous
environmental andenergyimprovements
Conduct regularreviews to achievesustainability goals.

Hold regulartraining sessions

Integrate all
relevant resources

Ensure regulatorycompliance

Expand corporate
influence

Enhance employees’
environmental
protection and energy
management
knowledge.

Implement
environmental andenergy management
programs.

Expand the
procurement of
products with energy
efficiency certification.

Connect with adjacentcompanies to form asustainable energy
cycle.

Head ofﬁce, 7 branches, self-owned buildings, andoverseas representative ofﬁces

Note: Coverage rate = certiﬁed business operation sites / total number of sites.

Energy and greenhouse gas management
Taiwan Life regularly inspects the energy use of its daily operations. In 2020, electricity consumption (kWh/person) decreased by 1.22%. Through the joint efforts of all our departments, we are gradually improving theenergy consumption of equipment in various locations, implementing energy conservation measures in our daily
lives in the form of an energy-saving contest, and making smart energy use a daily habit of all employees. In
order to achieve the long-term goal of a 5% energy reduction over ﬁve years, we regularly maintain and repair the
air-conditioning and lighting systems of the ofﬁce buildings that we own.

Green operation goals

Energy use

Continuously. Obtain environmental and energy management

system certification for every workplace ownedby the Company

energy management systems

Long term

refrigerant equipment
within five years. For self-owned real estate,

aim to reduce carbon
emissions by 2,017 tons infive years

2018Electricity

7,635,046

9,376,960
8,739,530. Continue to implement energy conservation and carbon

reduction measures to reduce total electricity
consumption and carbon emissions by 3.5% from 2021
to 20232019

kWhwith 2020 as the base year
. Continue to obtain certification of environmental and. Replace 50% of R-22

2020

kWh per person

1,777

Electricity
consumption
per person

1,799

1,634
Liter

177

. Obtain environmental andenergy-related certification
for Company workplaces
owned by the Company

Diesel

223

348
Liter

65,10164,314Gasoline(company cars)

79,443GJ (billion joules)

Environmental management systems and certiﬁcations
The Company and its subsidiaries have obtained ISO 14001 Environmental Management Systems,
ISO 50001 Energy Management Systems, and ISO 14064-1 Greenhouse Gas Quantiﬁcation and

33,57830,100Total energy
consumption

Reporting certiﬁcation, with a coverage of 100%. In 2020, a total of NT$1,649,500 was invested in

GJ (billion joules) per person

the management system guidance, veriﬁcation, education, and training. According to the plan–do–check–act
management cycle model, we constantly strengthen our spontaneous management mechanism to reach newenergy conservation and carbon reduction goals. As a ﬁnancial and insurance company, our daily operations
involve only general waste and resource recycling, with no hazardous waste produced.

92

35,897

6.80
Total energy
consumption
intensity

6.44

6.91

2020 Sustainability Report93Sustainable environmental commitment

Electricity use is our main source of greenhouse gas emissions. In 2020, our category 1 and 2 greenhouse gas

Paperless measuresemissions totaled 4,988 tons of CO2e. Furthermore, we include business travel in our greenhouse gas inventories.
Moving forward, we will evaluate our overall medium- and long-term emission reduction targets and increase
the proportion of renewable energy use in accordance with the guidelines of CTBC Holding. We also plan to

MeasurePerformance indicators
2020
註：節能減碳成效分別依據能源局公告2019年電力排放係數0.533公斤CO2e∕度及2020年電力排放係數0.509公斤CO2e∕度為計算基礎。

2019

2018

100%

100%

introduce products with ISO 14067 carbon footprint certiﬁcation and carbon emission labels.
Greenhouse gas emissions
Category 1

Category 2

Category 1 and 2

4,660

400
390

4,231
2018

Category 3

Category 4

2019

2020

1,451

4,988

2019

2019

Category 1 and 2

5,050

4,775

2018

Proportion of electronic
distribution of official
documents

Unit: Tons of CO²e

4,631

2020

Promote electronic official
documents and theirdistribution

2020

1.04

Proportion of electronic
versions of official
documents

100%

About

About

About

76%

72%

72%

100%
100%

Nearly

100%
100%

100%

1,413,595

1,221,867

946,664

2019

2018

0.99
2018

213
2020

Emissions

Emissions

Emissions

0.95

14

2020

2020

Emission intensity(tons of CO2e per person)

Usage rate of Mobile
Insurance Application
Service
Emissions

Note 1: Inventory boundaries were set using the operation control method.
Note 2: The Category 2 emissions are for power use, with factors of 2018:0.554, 2019:0.533, and 2020:0.509 kg of CO2e/kWh.
Note 3: In 2018, there were 4,672 employees at 14 certiﬁed sites, and in 2019, there were 4,859 employees at 15 certiﬁed sites.

Promote the Mobile
Insurance Application
Platform(cases from Mobile Insurance
Application Platform/all cases
accepted by agents)

NearlyNearlyExpand energy conservation and carbon reduction
In recent years, we continue to introduce energy-conservation measures to achieve energy conservation andcarbon reduction by optimizing our energy efﬁciency and replacing old lighting equipment. By promoting theuse of electronic documents, our Mobile Insurance Application Platform, online insurance, and e-policies, paper
use has been substantially reduced. Furthermore, we have launched an R-22 refrigerant equipment replacement

E-operation of insurance
policies for payment notices
and slips

Number of e-insurance
policies

plan for self-owned real estate, with the target of replacing 50% of such equipment within ﬁve years. For our
self-owned real estate, the replacement of ofﬁce lighting equipment in branches and self-owned buildings was
implemented in 2020, aiming to reduce 50,740 kWh in electricity consumption every year. Moving forward, we will

Note: Our Mobile Insurance Application Service includes the Mobile Insurance Application Platform, mobile proposals, policy consultations, and demand analysis; when using these, asmall number of customers request printed applications, which are also necessary when the services are affected by system updates.

also begin the replacement of air-conditioning systems with the goal of cutting their carbon emissions by 2,017
tons within ﬁve years.

Green buildings
Taiwan Life is committed to supporting environmental sustainability through its real estate investment andEnergy conservation measures
Year

2019

2020
Total

construction, project applications, and public and social welfare investments, with the goal of achieving green
building recognition for new construction projects. We implement and optimize performance and resource

Energyreduction

Carbon reduction

Connected the water chiller pipelines on different floors, improved the water chiller
load rate, and reduced the power consumption of cooling water pumps and fans

28,593

14.55

Replaced lighting equipment for a total of 78 8W LED lamps

8,199

4.17

Candidate Certiﬁcate. The total ﬂoor area of the development project is nearly 401,983.47 m2. With the aim

Replaced lighting equipment for a total of 452 6.5W LED lamps and 241 7W LED lamps

50,74025.82“the continuity of urban textures, the connection of open spaces, and environment-friendly sustainability”) and

87,532

44.54

Improvements(kWh/year)(tons of CO2e)efﬁciency measures as we strive to reduce our environmental footprint through low-carbon operation and green
procurement.
In April 2020, our development project in Taipei City’s Nangang District obtained a Gold EEWH Green Buildingof building a Gold Green Building ofﬁce complex, the project’s design is guided by three main themes (i.e.,eight design indicators (i.e., greening, water conservation, water resources, daily energy conservation, waste
reduction, carbon dioxide reduction, sewage and waste management, and indoor environment). Approximately
16,528.93 m2 is reserved for open space on the ground ﬂoor. Along the base of the building, 231 large plants

94

2020 Sustainability Report95

Sustainable environmental commitment

will be densely planted (in rows of two or more) and irrigated by recycled rainwater. This greenery will mitigate

Water resources management

the heat island effect in summer and dampen cold winds that blow on pedestrians in winter. As such, it will

One hundred percent of the water resources used in Taiwan Life’s daily operations come from state-owned utility

demonstrate how landscaping can improve the microclimate and create a safer, more comfortable space for

Taiwan Water Corp. There is no use of groundwater or other natural water bodies. Wastewater is discharged into

recreation. In addition, by means of power regeneration, solar power generation, and energy-saving glass

the sewer system, which has no signiﬁcant negative impact on the use and discharge of water resources.

technology, signiﬁcant energy-saving beneﬁts will be generated.
Utilization of water resources

Water
consumption

Water consumption
per personkl(kiloliter)kl(kiloliter)/per person

2020

125,860

2020

13.39

2019

145,226

2019

15.35

2018

133,459

2018

13.52

Note 1: Water consumption is estimated based on water charges.
Note 2: Calculated based on employee numbers of 9,868, 9,461, and 9,401 in 2018, 2019, and 2020, respectively.

7.2 Sustainable supply chain

Green building overview
Project

Recognition

In supply chain management, we strictly select partners who we are conﬁdent we can work with towardsustainable development and achieve win–win outcomes for enterprises and suppliers alike. To realize
real environmental sustainability and fulﬁll its corporate social responsibility, our parent company has formulated

Lot 15, Economic and Trade
Park, Nangang District, Taipei
land development project・Obtained a Gold EEWH Green Building Candidate Certificate in April 2020. Is expected
to be completed in 2022 and to obtain the EEWH Green Building Label in 2023.

the CTBC Supplier Human Rights and Environmental Sustainability Commitment, which guides the selection andmanagement of suppliers so as to reduce ESG-related supply chain risks.
Supply chain management policy

Taichung Intercontinental
Baseball Stadium build–operate–transfer (BOT) project

Taiwan Life’s CTBC Holding
Taichung Financial Building

Cultural and Creative
Industries Hall in Kaohsiung
Main Public Library BOT
project

96

・The project’s multipurpose sports center and parking tower have obtained a Bronze
EEWH Green Building Label.

・The project’s shopping mall is expected to obtain a Silver EEWH Green Building Labelafter construction, according to its Environmental Impact Comparative Analysis Report.

・Obtained a Silver EEWH Green Building Label in July 2020.

We evaluate potential suppliers on three criteria, namely their human rights policy, environmental sustainability
policy, and code of conduct. We also require them to conduct related self-assessments and to sign the CTBC
Supplier Human Rights and Environmental Sustainability Commitment. If a supplier violates the commitment, we
will ask them to improve in relevant areas and regularly their progress; in the case of a severe violation, we may
terminate our business relationship.
Supplier management measures

・Obtained a Silver EEWH Green Building Candidate Certificate in September 2017 and its
occupancy permit in March 2020, with the Silver EEWH Green Building Label to be
applied for subsequently.
・Won the top prizes for “planning and design” and “construction quality” at the 22nd
National Golden Award for Architecture event.

1. Supplier meetings: We hold meetings with suppliers in order to raise understanding of supply chain
sustainability, and invite external experts and scholars to share international developments in supply chain
management.
2. Education, training, and promotion: We carry out supplier education and training, help suppliers to build their
CSR management capabilities, and work with them to jointly fulﬁll their CSR.

2020 Sustainability Report97

Sustainable environmental commitment

3. Ethical management: We work with our suppliers to ensure that they operate in an honest and ethical manner

Screening supplier considerations

that includes avoiding conﬂicts of interest, bribery, and counterfeiting.
We encourage our suppliers to actively promote sustainable practices, including by requiring them to comply
with our supply chain management policy and prioritize the purchasing of products with environmental protection,energy-saving, green building materials, carbon footprint, and Programme for the Endorsement of Forest
Certiﬁcation labels and certiﬁcation.
In 2020, Taiwan Life’s green procurement expenditure totaled NT$220 million (including green building
procurement), the main suppliers for which included printing, business equipment leasing, transportation, andgreen building materials. There was no signiﬁcant change in suppliers from the previous year. For the year,

Human rights

99.7% of our procurement expenditure was with local suppliers, further reducing the emissions generated by thetransportation process and supporting the development of Taiwan’s green economy.
Green procurement
2020

2019

2018

Green procurement amount47,266,287

22,983,801

18,116,471

・In addition to abiding by health and safety-related labor regulations, thesupplier shall be committed to establishing a healthy, safe, and comfortable
work environment.
・The supplier shall respect employees’ rights to organize and join organizations. The supplier shall regularly organize labor conference representativeelections and hold labor–management meetings as well as provide diverse
communication mechanisms and platforms in order to ensure harmonious,
mutually beneficial labor relations.

Unit: NT$

Year

・The supplier shall be committed to establishing a diverse, open, equal, andharassment-free work environment. It shall not allow any violation of humanrights, such as child labor or forced labor. It is also prohibited from discriminating against any individual on the basis of sex, sexual orientation, race, class,age, marriage, language, ideology, religion, political affiliation, family origin,birthplace, appearance, facial features, physical or mental disability, or former
union membership. Moreover, it shall provide safe and diverse grievancereporting channels to protect employees’ rights and interests.

・The supplier’s use of raw materials for its business operations shall be inaccordance with the principle of protecting natural resources. In conforming tobasic quality controls, effort must be made to minimize any negative impact
on the environment, with preference during production given to using recycled

Procurement amount of green
building materials

resources or reusing existing resources and to eliminating the use of

173,586,916

1,642,670

potentially hazardous materials.

1,171,831

Environmental
sustainability

・The supplier shall identify and manage all materials that may be hazardous if
released into the environment, and it shall bear responsibility for protecting
and managing the environment in the processing, storage, and disposal ofthese materials.
・The supplier shall conduct a greenhouse gas inventory and plan as well asGreen procurement rate (including
green building materials)

27.62%

2.40%

3.40%

Green procurement rate (excluding
green building materials)

5.91%

2.23%

3.18%

establish a carbon management plan in order to reduce any adverse impact
on the environment.

・The supplier shall conduct business in an honest and ethical manner, and its
employees shall avoid conflicts of interest and other unethical conduct,
including bribery and fraud.
・When the supplier obtains confidential information in accordance with its
business needs, it shall protect this information and use it appropriately in

Supply chain procurement regulations
We have in place key criteria for selecting and managing suppliers and conduct an annual evaluation, screening,and ﬁltering of suppliers’ qualiﬁcations. We review and evaluate the human rights, environmental sustainability,code of conduct, and basic background information of suppliers as well as their goodwill, service content,transaction terms, procurement quality, cost, delivery time, and more for reference in our procurement decision-order to avoid the privacy of Company or personal information from being

Code of conduct

compromised.
・The supplier shall abide by intellectual property rights and related regulations.
・The supplier shall comply with CTBC personal data protection management
statement.

making, thus improving the overall quality of suppliers, reducing business risks, and establishing a sustainablegrowth partnership.

98

2020 Sustainability Report

99

08

An Inclusive
SocietySocial participation
With the goal of building an age-friendly society, Taiwan Life iscommitted to creating diverse public welfare action plans andparticipation channels for seniors, with focuses on aging in place
and active aging as we also seek to encourage employees toparticipate in related activities. In 2020, these efforts earned us theGold Award for Social Inclusion at the Taiwan Corporate Sustainability Awards and saw us win the Social Empowerment Category at
the Asia Responsible Enterprise Awards. Moving forward, we willcontinue to aim our public welfare efforts at supporting seniors andimplementing action plans.

Supported in-home bathing
service, helping 1,659 people

For four years in a row, we have supported the in-homebathing services in remote areas, helping 1,659 seniors
and people with a physical or mental disability.

110,000 participants inintergenerational walk

For the ninth year in a row, a series of activities for theThree-Generation Walk for Health were held, with a total of
110,000 participants.

100

101

Social participation

8.1 Public welfare for seniors
Concept
Aging is a growing issue of concern worldwide. Unlike many other issues that impact only a small number ofpeople or groups, aging affects the very structure of societies and families. Taiwan, one of the fastest-aging
countries in Asia, is set to become a super-aged society in 2025, with one in five people aged 65 or older. As
such, the problems arising from aging cannot be ignored. Indeed, aging is a key concern of Taiwan Life, and weseek to invest resources directly to address related challenges, which we also do by cooperating with relevantorganizations, social welfare groups, and social enterprises. For example, we promote a variety of action plansto encourage the public to enhance seniors’ awareness of self-health management through family support, thus
boosting their willingness to exercise, slowing their decline into ill health and disability, and creating opportunities
for inter-generational interaction and achieving positive outcomes for the public, the community, and enterprises.
Strategy: Aging in place
To address the rapidly aging population, Taiwan’s government is actively promoting various
long-term care policies. We also have a long history supporting innovative public welfare
programs aimed at seniors and aging-related issues. Specifically, we promote aging inplace, such as by supporting the cultivation of long-term care workers, making long-termcare systems sounder, and caring for disadvantaged seniors who are not protected by existing long-term carepolicies.
We also actively promote active aging by working with social welfare organizations, schools, and other institutions
to raise awareness of health promotion and independent aging. By introducing new long-term care-related
concepts and practices, we are confident that we can modernize traditional concepts of senior care in Taiwan.
In addition, we have long cooperated with academic institutions to research the retirement landscape in Taiwan
and promote early retirement planning. By doing so, we hope to turn Taiwan into an Asia-Pacific leader in agingrelated innovation. With such innovation, we hope more people will recognize the problems posed by Taiwan’s
aging society, thus encouraging more people and enterprises alike to work together to build an age-friendly
society.
Public welfare strategy for seniors
Intergenerational co-creation

Active aging

Connectwiththe world

・ IInternational forums
・ Intergenerational workshop of young people and seniors
・ Stanford Design Challenge
・ Learn from international practices for seniors and young
people to learn together

Independent living and healthy aging

Healthpromotion

Care for seniors inremote areas

・ Three-Generation Walk for Health・ Celebrities endorsement for family support
・ Provide senior protection in combination with our core business

Extend compassion and offer timely
assistance to seniors

・ Accompany seniors to medical appointments
・ Support in-home bathing services
・ Agents for introduction service of long-term care resources

Flip health care and upgrade
talent pool

Aging in place

Cultivate long-term care workers

・ Set up training center・ Introduce international courses
・ Use moving storytelling to update theAging in place
1. Cultivating long-term care workers•
Supporting long-term care worker training center
Since 2017, we have supported the Hondao Senior Citizen’s Welfare Foundation to build six
home care environments simulating different economic conditions in a training center. Replacing
traditional teaching and class methods, these realistic simulations increase the authenticity of
training, improve the self-confidence of care workers, reduce their injuries, and improve theirretention rates.
In order to improve the professionalism and care quality of care workers, Taiwan Life has
supported the introduction of international care courses, such as courses covering bowel
movement and adult diaper best practices from Japan. We have also provided scholarships forcare workers to go abroad to receive training in proper foot care. After such workers return to
Taiwan, we have also organized for them to share their knowledge with others through workshops,
thus expanding the influence of their international courses and enhancing the standards andconfidence of domestic care workers.
•

Flipping traditional SOPs through moving storytelling
In order to increase public understanding of the role of care workers, improve their social andeconomic status, and modernize outdated aging-related SOPs, Taiwan Life joined hands with
Hondao to publish the book “Care Worker Rushing Forward” in 2018. Through its engaging
and touching story, the book has served as a practical educational and awareness-raising tool
regarding the hard work, innovation, and dedication of care workers. Taiwan Life also sponsoredthe sending of 1,000 books to school campuses, supporting Hondao’s efforts to have young
people better understand the care service field and to consider a career in it.

2. Supporting long-term care services in remote areas•
In-home bathing service
Pingtung is a vast area with high temperatures all year round, rough terrain, inconvenienttransportation, and a lack of resources. For people with a disability, a usually trivial matter such as
bathing is not only a luxury for them but a great challenge for care workers and family members.
The alternative of cleaning them only through sponge baths is far from optimal, as it can cause
health problems in the long term for recipients and have a large psychological burden on care
workers.
Since 2017, we have supported the Pingtung Bjorgaas Foundation to provide in-home bathing
services. We also maintain a professional three-person bathing team, one of whom is a nurse, torelieve the pressure on care workers by giving them breaks and timely nursing consultations.
Although there are in-home bathing services in different counties and cities, bathing needs in
Taiwan’s remote areas still cannot be fully met, and many people do not know that there are suchlong-term care services specifically for bathing. Therefore, in 2018, Taiwan Life filmed “In-home
Bathing Service,” a video documenting Bjorgaas Foundation staff’s travel to remote areas, frommountainous villages to coastal townships, thereby raising awareness of the service and of theneed for more funding to support such in-home bathing services.
Due to the high demand and frequent use of the in-home bathing service, its service
car and equipment age rapidly. As such, Taiwan Life joined hands with partners in2020 to source a new service car and other equipment in a timely manner to ensure
In-home Bathing
service continuity.
Serviceperception of the long-term care field

102

2020 Sustainability Report103Social participation

Build a seamless care network for seniors who live alone
The long road to ensuring medical treatment for seniors who live alone
Difficulties in accessing
medical treatment

Complicated order of
medical treatment in hospitals

Multiple courses of
medication

Match care institution after
discharge from hospital

Volunteer medical travelcompanion service(2017-2018)

・ Assist in pre-registration
・ Accompany seniors to medical

appointments and records doctor’sorders・ Home visits

Shoot videos of seniors who live
alone making doctor’s visits(2017-2018)

Medical travel companion service
Seniors who live alone often delay medical treatment due to psychological factors, inconvenienttransportation, or having no one to accompany them to appointments. These barriers to treatment affectnot only seniors in disadvantaged families but also seniors who live in non-urban areas, where bus andtaxi access is limited. Given this situation, Taiwan Life launched a medical travel companion service forseniors who live alone in 2017, as part of which it also launched awareness-raising efforts, including
through a documentary, to encourage members of the public to reach out and assist seniors who live
alone to seek medical treatment.
- Medical travel companion service: Many seniors find receiving medical treatment difficult in part becauseof the repeated checkups required and the need to travel between various parts of large hospitals
for different treatment and testing purposes. In addition, those who have difficulty reading may takemedications incorrectly. To address such issues, Taiwan Life supports the Hondao Senior Citizen’s
Welfare Foundation, together working with community volunteers to accompany seniors who live alone andwho have an insufficient family support system or are economically underprivileged to make regular andfollow-up visits for medical treatment, understand their medication, and connect with post-hospitalization
care-giving institutions so they can return to living a healthy, independent lifestyle.
- Public appeal: We know that social problems such as this cannot be solved by a single
enterprise or social welfare organization. That’s why we also urge the public to join our efforts
to help address such issues together. In this case, Taiwan Life and Hondao Senior Citizen’s
Welfare Foundation jointly filmed “A Long Way to Medical Treatment for Seniors Living Alone.”
A Long Way to
By showcasing the hardship seniors in Chiayi County’s remote Dalin Township face in seeking Medical
Treatment
for Seniors Living
medical treatment, the video drives home the current status of long-term care services in
Alone
Taiwan as well as the needs and difficulties of seniors who live alone.
- In 2018, we conducted a survey on the needs of seniors seeking medical treatment, receiving
responses from 440 seniors with an average age of 80. Seventy-four percent of those surveyed said theyencountered difficulties going to the hospital, including with regard to waiting time for medical treatment
and return visits, needing assistance and companionship from others, and inconvenient transportation.
In addition, some 60% of respondents reported forgetting to take their prescribed medication or disliking
having to take multiple medications. Therefore, in 2019, we launched the Three Steps of Home Care for
Senior Outpatients program, comprising confirming their medical orders, tracking their medical conditions,and connecting them with resources. The program was adopted at 33 of Hondao’s volunteer stations
across Taiwan, helping volunteers to better fulfill the actual needs of seniors.

・ Document the process and•104

No place to recuperate(2017-2018)

Seamless
integration ofhome, hospital, andinstitution care2017-2018
Served six regions
Seniors helped

606timesdifficulties of seniors in Chiayi’s Dalin
Township in getting medical
treatment, with nearly 10,000 views
・ Received the Social Inclusion Awardand the Jury Award at the Taipei
Golden Eagle Micro-Movie Festival
Awards・ Home care after discharge from hospital・ Return visits for rehabilitation
・ Emergent matchmaking with institutions
for recuperation

・ Assist in connecting seniors withlong-term care resources

Investigation of the needs ofseniors seeking medical treatment(2018-2020)

・ A survey of 440 seniors with an averageage of 80 found that 74% of them had
difficulties in seeking medical treatment
・ Launched Three Steps of Home Care for
Senior Outpatients program

seniors seeking medical treatment••

Sending long-term care resources to policyholders’ homes
Taiwan Life uses its core business advantages, face-to-face service infrastructure, and countrywide
service presence to connect policyholders with long-term care resources. Since 2018, we have beenworking with Hondao social workers and care workers to tailor the teaching materials of the “Taiwan Life
long-term care resource integration course” for our agents. We have conducted the course in physicalclassrooms in Taipei, Taoyuan, Taichung, Tainan, Kaohsiung, and Hualien. We have also digitized thecourse and put it on our internal online educational platform, “TOP Channel”, through which more than
5,000 agents have completed the course.
In 2019, we once again joined hands with Hondao to hold an advanced form of the course, which we havepromoted through physical and online training by integrating the best practices of the Federation for the
Welfare of the Elderly’s Guardian Angel Certification Course for the Elderly with Dementia. All Taiwan Life
agents—more than 7,000 people—have completed the advanced training course, ensuring they can provide
practical care services to customers and people in need across Taiwan, including in remote areas, and thus
become a bridge linking long-term care resources and care workers with those in need of such care.
Increasing quality of life through liver disease prevention and treatment
Chronic liver disease and cirrhosis are among the top 10 causes of death in Taiwan every year, with mostof these cases caused by hepatitis. In order to reduce the incidence of liver diseases and enable people
to receive a liver disease diagnosis and treatment early, Taiwan Life has supported the Liver Disease
Prevention & Treatment Research Foundation to hold screening activities for hepatitis and liver cancer inremote areas for six consecutive years. In doing so, we are calling on agents all over Taiwan to conduct
free "liver disease screening", and cooperating with local governments and health units to encourage
people to participate in the screening, and we advocate the concept of protecting liver and keep awayfrom the threat of liver disease.

2020 Sustainability Report105Social participation

younger members and the experience and expertise of their older members, jointly design creative
solutions for “old” aging-related problems from a “new” perspective.
Since 2017, four consecutive Asian regional competitions have been held, attracting nearly 1,000 entrants
from Taiwan, China, South Korea, Hong Kong, Malaysia, and Vietnam to design submissions according
to the global competition topic and rules set by the Stanford Center on Longevity. Over this period,
nearly 200 schools have participated, submitting more than 280 entries. The competition proposals haveincluded accessories, board games, financial tools, and music therapy. After the written entries areassessed, youth teams are invited to present their proposals in English to the jury, with seven seniors who
are members of the jury offering feedback in real time.
The winning team of the Asian regional competition is then supported by Taiwan Life to go to the U.S.
to participate in the global competition, giving young Taiwanese innovators a place on the international
stage and further encouraging young people to seek work in aging-related fields. In 2018, the Taiwan
Life Special Award was introduced to subsidize the shortlisted Asian team’s participation in the global
competition.
Among the four proposals entered into the global competition in the past four years, “Pillow Fight,” aproject under Taiwan Life’s supervision, was the third runner-up in the global competition. In 2020, thecompetition’s theme was “After the Pandemic: Designing the Next Version of Our World,” receiving 223
entries from 37 countries. The Asian contest winner, “Intelligent Health Promotion Service System,” wasdesigned by a team from Taiwan’s National Cheng Kung University and finished among the top 8 entrants
in the global competition in April 2021.

Most people who have hepatitis B are excluded from insurance coverage because of their physicalcondition. However, Taiwan Life believes that as long as appropriate medical assistance is provided,
the disease can be effectively controlled and the health of patients can be maintained. Therefore,
we designed the industry’s first liver disease insurance policy (i.e., Taiwan Life Love Liver Whole-Life
Insurance for people with pre-existing conditions), providing innovative management and payment
services including drug treatment, local treatment, hospitalization, surgery, and convalescence.

Active aging
1. Adopting international, forward-thinking approaches to aging
This is an age of global aging, and we believe that Taiwan’s aging-related ideas, attitudes, andpractices should keep pace with relevant international developments. As such, “old” should no longer
be equated with “weak” or “disabled.” Everyone should rethink the potential value of aging and make it
one of the leading factors in the development of the new economy.
•
International trend exchange platform
Since 2017, we have organized the Aging Innovation Week - APAC Summit with social enterprise Silver
Linings Global, inviting domestic and foreign industry, government, and academic figures, including fromthe U.S., Australia, Asia Pacific, the Netherlands, Belgium, and Taiwan, to share their insights on topics fromold age care to preventive health management. They also share their perspectives on topics from “rebuilding
the value of aging” to “aging innovation,” introducing emerging aging-related concepts including innovative
care models and healthy, independent lifestyles for seniors.
Since 2019, Taiwan Life President Tony Chuang has worked with industry, government, and academic
leaders from home and abroad to host the VISION 2025 Senior Aging International Trends Forum inpartnership with CommonHealth Magazine, proposing various analysis strategies for the aging problem
in Taiwan. As part of the forum’s 2020 edition, Taiwan Life shared insights on risk aversion strategies inconsideration of longevity risk as well as financial preparation for retirement, helping the public plan for the
future with peace of mind.
•

106

Solving the “old” problem from a “new” perspective
Taiwan Life, together with social enterprise Silver Linings Global, jointly holds the Stanford Center onLongevity Design Challenge Asia to encourage young people and seniors in Taiwan to form crossgenerational teams for the contest. Competition teams, through the creativity and innovation of their

Stanford Center on Longevity
Design Challenge co-working

Intergenerational workshops of younger andolder people
From 2017to 2020:

・ Some 200 schools submitted morethan 280 entries.

・ Four entries from Taiwan wereshortlisted for the global competition, with one winning third place.

Professional tutors
provide practicalexperience

Scholarships for students
to study in the U.S.

2. Promoting independence among seniors•

Intergenerational family walks for nine years
For nine consecutive years, we have organized the Three-Generation Walk for Health, focusing on a shortdistance of 3 km, which is suitable for the whole family. Games and activities that are suitable for thephysical fitness of family members of all generations are also provided at the activity site. We encourage
the public to take the whole family outside and encourage seniors to maintain healthy habits.
In 2020, due to the impact of COVID-19, the activity was changed to a Facebook event: Three Generation

2020 Sustainability Report107Social participation

Meet-up for a Walk 2021. By facilitating the sharing of family travel strategies, inviting experts to teachhow to prepare seniors’ favorite recipes, encouraging grandparents and grandchildren to exchange
their favorite forms of entertainment, and shooting family videos, the online event encouraged families
to travel, dine, and bond together.

••

Bulao senior baseball league
In order to help seniors develop healthy habits and increase their willingness to exercise regularly,
Taiwan Life and the Hondao Senior Citizen’s Welfare Foundation launched the Bulao Baseball League
in 2019. By bringing teams of seniors together, the league fosters healthy physical and social activity
by helping participants develop regular exercise habits and engage in group interaction. As of 2019,the league had 16 teams comprising 562 registered players, with an average age of 63 and 13 players
aged 80 or older.
Lectures on public welfare for seniors
To allow family care workers to feel greater social support and understand that they are not alone,
Taiwan Life has held a series of lectures in recent years encouraging these care workers to engage inproper self-care in order to maintain their physical and mental health.
Lecture series topic

Speakers

Description

Number of participants and results“Accompanying familycare workers”

Family care worker and popular writer,
Man-Chuan Chang
Psychiatrist and popular writer, HuiWen Teng
Doctor specializing in nutrition, Po-Jen
Liu
Muscle strength expert, Shu-Mei Peng

This lecture series was aimed at helping family care
workers feel greater social support and encouraging
them to practice proper self-care.

Attendees: 492
Results:•   84% overall satisfaction for the “Say lovewith company” lecture•   93% overall satisfaction for the “I’ll be withyou till the end” lecture“Realizing the dreamof retirement life”

Former Department of Health Director,
Chin-Chuan Yeh
Psychiatrist and popular writer, HuiWen TengWith increasing life expectancy making for longer
retirements, these speakers were invited to share
their personal experiences on aging in a happy andhealthy manner.

Attendees: 424
Results:•   98% were satisfied with the overall activity•   92% found the content helpful for theirwork and life

Bjorgaas Foundation CEO, Wen-Chen
Chou
Occupational therapist, Chih- Yuan
Wang
Silver Linings Global COO, Wen-Chi
Cheng

These lecturers were held to remind the publicthat one of the keys to the success of physicalrehabilitation is family support. We invited the
Bjorgaas Foundation to share modern concepts
regarding rehabilitation and ways of helping seniors
with a disability to regain their self-reliance.

Attendees: 51
Results:•   100% found the lecture helpful in revive
the ability of seniors to live independently•   98% found the insights on life
rehabilitation and the use of resources
helpful“The best way to takecare is not to take
care”

108

3. Monitoring indicators of Taiwan’s retirement landscapeSince 2016, we have been paying close attention to Taiwan’s retirement landscape andattitudes, tracking topics such as economic security, health care preparation, and the social
lives of empty nesters. In partnership with the Risk and Insurance Research Center of National
Chengchi University’s College of Commerce, we conduct an annual survey to this end and hold a followup seminar, using the survey results to call on the public to pay closer attention to their retirement
planning. In 2020, we established specific indicators for evaluating financial resources for retirement;
long-term care; confidence in and adequacy of medical care; and life satisfaction of all retirees in Taiwan,
and will continue to publish the results in these indicators for the next five years. According to the 2020
survey results, the age at which people are willing to start retirement planning has decreased to 37.87;
this is 5.42 years earlier than in 2019, with the retirement preparation period also growing from 15 years
to 21 years. These results reflects the public’s growing recognition that retirement planning is a personal
responsibility, and indicates growing positive behavior regarding retirement planning.

8.2 Other social care
In addition to public welfare efforts aimed at helping seniors, we fulfill our commitment to community engagement
through various other means and fields. In doing so, we strive to leverage our position in the insurance industry
to promote diverse and innovative social service projects, realize inclusive finance, and provide basic insurance
protection in response to the real needs of the public. We also foster healthy community development by
supporting sports—baseball in particular—at every level from the grassroots to the national stage.
1. Promoting micro-insurance
In 2014, in support of the government’s push to strengthen the insurance safety net for underprivileged people,
Taiwan Life launched the industry’s most comprehensive line of micro-insurance products for individuals andgroups. The total number of people insured by the products exceeded 166,000 as of the end of 2020, witha total insured amount of more than NT$35 billion. In 2020, we won five major awards in the FSC’s microinsurance promotion competition—more than any other insurer. In addition, we donate insurance premiums tomeet the needs of underprivileged individuals, families, and groups.
2. Supporting baseballTaiwan Life has a rich history supporting baseball, Taiwan’s national pastime. This includes sponsoring
Taichung City Baseball Team and promoting baseball training—efforts aimed at fostering greater
understanding of and participation in the sport as well as cultivating baseball talent and improving the public’s
overall physical and mental health. Such efforts have earned us recognition from the Sports Activist Awards forfour years running.

2020 Sustainability Report109Appendix
Diverse talent development appendix
1. Office staff by gender and employment contract

GRI Standards index
GRI 102: General Disclosures 2016

Year
Non-regular employees

Regular or temporary contract
employees

2020

2019

2018

Women

1,134

1,131

1,236

102-1

Name of the organization

Men

725

701

696

102-2

Activities, brands, products, and services

Women

2

2

2

102-3

Location of headquarters

Men

1

1

2

102-4

Location of operations

102-5

Ownership and legal form

102-6

Markets served

102-7

Scale of the organization

102-8

Disclosure

Note: Employees with non-regular contracts are those who have no time limit and can continue to work unless they are laid off or leave voluntarily. Employees with a regular or temporary contractrefers to employees whose employment has a fixed term and who can only continue working after expiration of the contract if the employer renews the contract.

Organizational
profile2. Workplace diversity
Year

2020

2019

2018

Number of employees

9

9

10

Number in management

0

0

0

Number of employees (actual)

13

13

13

Number of employees (weighted)

20

20

20

Number in management (actual)

0

0

0

Number in management (weighted)

0

0

0

Indigenous people

Employees with a physical ormental disability

Note: Management refers to supervisors at or above the section chief level who are responsible for supervision and management.

Association

Category

Life Insurance Association of the Republic of China

Taiwan Elderly Care Industry Association

Insurance Society of the Republic of China

Asia Pacific Public Private Partnerships Association

Risk Management Society of Taiwan

Engineering Insurance Association

Nuclear Insurance Association of the Republic of China

Taiwan Residential Earthquake Insurance Fund

The Pension Fund Association
The Non-Life Underwriters Society of the Republic of
China

Industry andcorporate
governanceCorporate
governanceTaiwan Insurance Law Association

Financial Planning Association of Taiwan

1 About Taiwan Life Insurance

14

Information on employees and other workers

6.1 Talent recruitment andcultivation

78

102-9

Supply chain

7.2 Sustainable supply chain

97

102-10Significant changes to the organization and its
7.2 Sustainable supply chain
supply chain

102-11

Precautionary Principle or approach

3.2 Risk management35

102-12External initiatives

About this report

1

110

110

Statement from senior decision-maker

Ethics andintegrity

102-16

Values, principles, standards and norms of
behavior

Governance102-18Governance structure102-40

List of stakeholder groups

2.2 Stakeholder communication

22

102-41

Collective bargaining agreements

6.2 Employee rights and workplace
health84

102-42

Identifying and selecting stakeholders

2.1 Materiality analysis

20

102-43

Approach to stakeholder engagement

2.2 Stakeholder communication

22

102-44

Key topics and concerns raised

2.2 Stakeholder communication

22

102-45

Entities included in the consolidated financial
statements

About this report

1
1
20
20

Stakeholder
engagement

4
6
30
8
30

102-46

Defining report content and topic boundaries

About this report
2.1 Materiality analysis

102-47

List of material topics

2.1 Materiality analysis

102-48

Restatements of information

The Company has
published its first
Sustainability Report,with no restatements of
information

102-49Changes in reporting

The Company has
published its first
Sustainability Report, withno changes in reporting

102-50

Reporting period

102-51

Date of most recent report102-52

Reporting cycle

Financial Ombudsman Institution

Institute of Financial Governance and Compliance ofRepublic of China
Computer Audit Association
Institute of Financial Law and Crime Prevention

Technology
innovation
andinformation
security

Taiwan FinTech Association
Financial Information Sharing and Analysis Center

Reportingpractice

102-53102-54

Contact point for questions regarding thereportClaims of reporting in accordance with the
GRI Standards

About this report

1
The Company has
published its first
Sustainability Report

About this report1

About this report1

About this report

1102-55

GRI content index

Appendix
GRI Standards index

111102-56External assurance

Appendix
Independent limited assurance
report116

Taiwan Depository & Clearing Corp.
Note: The participating companies are Taiwan Life and CTBC Insurance.

Appendix
List of association memberships
Letter from the Chairman
Letter from the President
3.1 Corporate governance andethical management
Sustainability strategy
3.1 Corporate governance andethical managementNote

No significant change

102-14Motor Vehicle Accident Compensation FundThe Institute of Internal Auditors - Chinese Taiwan

China Credit Information Service Ltd.

Taiwan Association of Energy Service Companies

1

Strategy

Taiwan Insurance Institute

Chinese Insurance Service Association

Taiwan Risk and Insurance Association

About this report

Taiwan Insurance Guaranty Fund

The Actuarial Institute of Chinese Taipei

Taipei Leasing Association, R.O.C.

Page

Membership of associations

Joint Credit Information Center

The Non-Life Insurance Association of the Republic of
China
Industry andcorporate
governance

Association

Reference section

102-13

List of association memberships
Category

Description

2020 Sustainability Report111Appendix
Material topic: Responsible investment and financing

Material topic: Operating performance
Disclosure
Economic
performance
Management
approach

Description

Reference section

Page

201-1

Direct economic value generated and distributed 1.2 Operating performance

16

201-2

Financial implications and other risks andopportunities due to climate change

3.2 Risk management

35

103-2

The management approach and its components

103-3

Evaluation of the management approach

1.2 Operating performance

16

Note

GRI G4

Management
approach

Material topic: Corporate governance and ethical management
Disclosure
Anti-corruption
Anti-competitive
behavior
Management
approach

Description
205-2

Communication and training about anticorruption policies and procedures

206-1

Legal actions for anti-competitive behavior, antitrust, and monopoly practices

103-2

The management approach and its components

103-3

Evaluation of the management approach

Disclosure

Reference sectionPage

3.1 Corporate governanceand ethical management

30

Note

3.1 Corporate governanceand ethical management

30

Percentage and number of companies held in
the institution’s portfolio with which the reportingorganization has interacted on environmental orsocial issues

5.2 Responsible
investment

66

5.4 Engagement andvoting management

73

FS11

Percentage of assets subject to positive andnegative environmental or social screening

5.4 Engagement andvoting management

73

103-2

The management approach and its components

103-3

Evaluation of the management approach

5.2 Responsible
investment

66

Management
approach

103-2

The management approach and its components

103-3

Evaluation of the management approach

Reference section

Page

3.2 Risk management

35

Note

Disclosure

Description
103-2

The management approach and its components

103-3

Evaluation of the management approach

Customer privacy
Management
approach

Description
418-1

Substantiated complaints concerning breachesof customer privacy and losses of customer data

103-2

The management approach and its components

103-3

Evaluation of the management approach

Description
307-1

Non-compliance with environmental laws andregulations

Socioeconomic
compliance419-1

Non-compliance with laws and regulations inthe social and economic area

103-2

The management approach and its components

103-3

Evaluation of the management approach

Reference section

Page

Note
None

Management
approach112

23

Description

Reference section

Page

Note

416-2

Incidents of non-compliance concerning thehealth and safety impacts of products andservices

None

Marketing andlabeling

417-2

Incidents of non-compliance concerning
product and service information and labeling

None

103-2

The management approach and its components

103-3

Evaluation of the management approach

3.3 Information security

Disclosure
GRI G442

Management
approach

Reference section

Page

Note

Description
FS7

Monetary value of products and services
designed to deliver a specific social benefit foreach business line broken down by purpose

103-2

The management approach and its components

103-3

Evaluation of the management approach

Description
103-2

The management approach and its components

103-3

Evaluation of the management approach

Disclosure

None
3.4 Legal compliance45

3.4 Legal compliance45

Employment

Material topic: Fintech applications
Disclosure

Note

4.1 Treating customers
fairly50

Reference sectionPage

4.3 ESG insurance
products

Note

58

Material topic: Employee rights and benefits

Environmental
complianceManagement
approach

2.3 Quick COVID-19
response

Page

Material topic: Affordable and accessible products and services

Material topic: Regulatory compliance
Disclosure

Reference section

Customer health andsafetyManagement
approach

Material topic: Information security and customer privacy
Disclosure

Note

Material topic: Customer Rights Maintenance and Service Quality

Material topic: Integrated risk management
Description

Page

FS10

Disclosure

Disclosure

Reference section

Material topic: Epidemic response

Management
approach

None

Description

Reference section
4.2 Digital finance

Page
55

Note

Description

Reference section

Page

401-1

New employee hires and employee turnover

6.1 Talent recruitment andcultivation

78

401-2

Benefits provided to full-time employees thatare not provided to temporary or part-time
employees

6.1 Talent recruitment andcultivation

78

401-3

Parental leave

6.2 Employee rights andworkplace health84

3.1 Corporate governanceand ethical management30

6.1 Talent recruitment andcultivation

78

Diversity and equal
opportunity

405-1

Diversity of governance bodies and employees

Non-discrimination

406-1

Incidents of discrimination and corrective
actions taken

103-2

The management approach and its components

103-3

Evaluation of the management approach

Management
approach

Note

None
6.1 Talent recruitment andcultivation

78

2020 Sustainability Report113

Appendix
Corresponding SASB
Topic

SASB indicators

Disclosure chapter

Disclosure content
Cases related to customer product-related marketing and communication that were settled by the court in 2020 and improvement measures:Transparent
Information &Fair Advice for
Customers

Incorporation ofEnvironmental,
Social, andGovernanceFactors in
Investment
Management

Policies designed toincentivize responsible behavior

Environmental risk exposure

Case

Improvement measures

In 2020, Taiwan Life reached a settlement with apolicyholder, paying a NT$880,000 settlement for acase involving “marketing and communication related tocustomer products.”

The Company will strengthen the education and training of the agents,
require them to perform solicitation in accordance with the regulations,and verify that the solicitation process is in line with the laws andregulations and that the insurance coverage meets the needs of thepolicyholder.

FN-IN270a.1

Total amount of monetary losses as a result of legal
proceedings associated with marketing and communicationof insurance product-related information to new andreturning customers

Appendix
Corresponding SASB

FN-IN270a.2

Complaint-to-claims ratio

4. Thoughtful customer service-

FN-IN270a.3

Customer retention rate

Appendix
Corresponding SASB

In 2020, the customer retention rate of Taiwan Life was 97.50%.

FN-IN270a.4

Description of approach to informing customers about
products

4. Thoughtful customer service-

FN-IN-410a.1

Total invested assets, by industry and asset class

5. Stewardship and responsible investment-

FN-IN-410a.2

Description of approach to incorporation of environmental,social, and governance (ESG) factors in investment
management processes and strategies

5. Stewardship and responsible investment-

FN-IN-410b.1

Net premiums written related to energy efficiency and low
carbon technology

3. Transparent corporate governance-

FN-IN-410b.2

Discussion of products and/or product features thatincentivize health, safety, and/or environmentally
responsible actions and/or behaviors

4. Thoughtful customer service-

FN-IN-450a.1

Probable maximum loss (PML) of insured products fromweather-related natural catastrophes

Appendix
Corresponding SASB

FN-IN-450a.2

Total amount of monetary losses attributable to insurance
payouts from (1) modeled natural catastrophes and (2)non-modeled natural catastrophes, by type of event andgeographic segment (net and gross of reinsurance)

Appendix
Corresponding SASB

The PML of climate-related natural disasters of CTBC Insurance was calculated as follows:- The loss amount of the “20-year return period” was NT$96.02 million, the risk mitigation amount of the non-proportional reinsurance contract
was NT$46.02 million, and the total net retained loss was NT$50 million; the loss amount of “50-year return period” was NT$188.79 million,
the risk mitigation amount of non-proportional reinsurance contract was NT$138.79 million, and the total net retained loss was NT$50
million; the loss amount of “100-year return period” was NT$294.33 million, the risk mitigation amount of non-proportional reinsurance
contract was NT$244.33 million, and the total net retained loss was NT$50 million; the loss amount of the “200-year return period” was
NT$306.20 million, the risk mitigation amount in the non-proportional reinsurance contract was NT$256.20 million, and the total net retained
loss was NT$50 million.
- The calculation was based on the Insurance Industry’s Scope of Calculating Total-adjusted Capital and Risk-based Capital and Calculation
Formula for Natural Disaster Calculation Formulas issued by the Taiwan Insurance Institute; the data range was Oct. 1, 2019 to Sept. 30,
2020; and the average loss of insurance business was NT$74.49 million, while the average loss of retention business was NT$35.76 million.

FN-IN-450a.3

Description of approach to incorporation of environmental
risks into (1) the underwriting process for individual contractsand (2) the management of firm-level risks and capital
adequacy

3. Transparent corporate governance

FN-IN-550a.1

Exposure to derivative instruments by category: (1) total
potential exposure to non-centrally cleared derivatives,(2) total fair value of acceptable collateral posted with theCentral Clearinghouse, and (3) total potential exposure tocentrally cleared derivatives

For details, please refer to the Financial Statements of Taiwan Life for year 2020, “VI. Explanation of significant accounts”. At present, the Company has no futures option position.

FN-IN-550a.2

Total fair value of securities lending collateral assets

Appendix
Corresponding SASB

The total fair value of securities collateral was NT$6,344,662,520.

FN-IN-550a.3

Description of approach to managing capital and liquidityrelated risks associated with systemic non-insurance
activities

3. Transparent corporate governanceFor details, please refer to the Financial Statements of Taiwan Life for year 2020, “III. Liquidity risk management Mechanism”.

FN-IN-000.A

Number of policies in force, by segment: (1) property andcasualty, (2) life, (3) assumed reinsurance

Note: Customer retention rate = [(total number of customers at the end of the period) - (number of new customers in the current period)] / [(number of customers in
the previous period) - (number of customers terminated involuntarily)], all of which exclude employees.

Systemic risk management

Activity metrics

114

Appendix
Corresponding SASB

Number of valid policies
2020

2019

2018

1.Property & Casualty insurance

612,845739,807768,212

2.Life insurance

3,798,271

3,510,246

3,195,160

2020 Sustainability Report115

Appendix
Independent limited assurance report

116

117

2020 Sustainability ReportAppendix

118

119

2020 Sustainability ReportThis Report is printed using FSC™ certified paperand ecologically friendly soy-based ink.