The Taiwanese Cabinet has announced plans to encourage insurance companies to invest in public infrastructure projects and the long-term care sector to increase private investment in government-led projects.
Financial Supervisory Commission Vice Chairman Cheng Cheng-mount said at a news conference introducing new measures to attract private investment: “The Ministry of Finance is to standardise investment contracts, as insurance companies are unfamiliar with public infrastructure programmes. Matching insurance companies with third-party businesses can also help insurance companies invest in public infrastructure projects.”
Measures would to be taken too to securitise public infrastructure projects, allowing the insurance sector to participate in infrastructure construction with a new financial tool, the Finance Ministry said.
The insurance sector could invest as much as 10% of its disposable funds — about NT$22 trillion (US$733.6 billion) — on public infrastructure projects, but so far only 1% of that has been invested, suggesting a large untapped investment capacity, reported The Taipei Times.
Long-term care insurance
In addition, insurers have been requesting government approval to invest in the long-term care industry to facilitate the sale of related policies, Deputy Minister of Finance Chuang Tsui-yun said, adding that the approval would be granted following the passage of a draft act regulating long-term care institutions.
The Cabinet would recognise long-term care institutions as social welfare facilities next year, which would allow operators to enjoy tax benefits, thereby encouraging investment in the long-term care sector, she added.