Financial Innovation and Sustainable Products/Services

FitBack promotion, facilitating healthy actions through technology

In 2018, we were the first in the industry to roll out a large-scale health promotion project. "Get healthy, get rewarded" was the project's theme. Through gamification of achievements and a reward mechanism, participants were incentivized to exercise more. In 2020, the project was upgraded to "Cathay Walker Plus(upgrade to FitBack in November 2022)," where the focus shifted from encouraging participants to walk more to adding more diverse health missions (e.g. gym workouts, sleep, heart rate, etc.) and rich cross-industry collaboration. The project invited the public to participate in gradually building a large-scale health ecosystem. By the end of 2022, there were a total of 806,000 FitBack App members. Users collectively walked 849 billion steps, which is equivalent to 662 round trips to the moon.

Realize health management by maximizing the inherent values of " ex-ante prevention" and " ex-post compensation " of insurance products

Insurance Products

Results from 2022

Insurance with Spill-over Effect

We are the industry leader in promoting second-generation health promotion products. Stepping into the shoes of our customers, the product integrates Fitback App's healthy ecosystem platform to allow policyholders to select their health missions. Through the use of our AI health engine - Life Score, users can quickly gain insight into their health status. The program provides policyholders with the care they need while encouraging them to stay healthy to be eligible for discounted premiums.

The company launched 16 new health promotion products (for a total of 50 for the calendar year), offering a variety of coverages (e.g. long-term care, hospital indemnity, surgery, cancer, dementia, catastrophic illness and investment products) to meet customers' coverage needs. A total of 431,000 policies were sold, resulting in approximately 759,000 active policies by year-end.

Protection Products

To increase the public's coverage awareness, Cathay Life has been promoting health management by releasing promotional videos, promoting health outreach activities and creating diverse health promotion insurance policies. Cathay Life also continues to work with government policies to actively promote protection products, reaching 15.04 billion in FYP.

Integrate education to increase risk prevention awareness

Cathay Century promotes risk prevention education to achieve the goal of "comprehensive risk identification for all ages," and has implemented the “Campus Traffic risk map ”and "Accident-free Rider Project" and "Accident-free Bicycles Project." The projects utilize digital technologies such as virtual reality (VR) and augmented reality (AR), while using the Zero-Accident Academy website to share risk awareness with the general public. The projects integrate online and offline resources to create a new kind of interactive road safety education experience.

Transportation Safety Education	Action Plans
Campus Traffic risk map	Cathay Century and National Pingtung University collaborated on a transportation project in 2022. The project covered the areas of its three sub-campuses (Pingshang Campus, Pingshih Campus and Minsheng Campus), including parts of Pingtung City. Through the integrated power of industry, government and academia, the project sought to expand the effectiveness of the campus Traffic risk map. By taking advantage of Web VR technology and through the promotion by the university's student association, the project attracted the participation of more students and the public to collectively understand the traffic accident hotspots in their everyday environment.
Accident-Free Riders Project -Campus transportation safety awareness program	Colleges, universities, high schools and vocational schools were the target outreach groups. The program trained instructors from Cathay Century's four internal business units and maintained cooperation with Cathay Life's campus operations network.In 2022, Cathay Century held 23 courses on campus traffic safety, accumulating to more than 2,000 course participants. Cathay's program instructors were also invited to the Ministry of Education's Traffic Safety Training Camp to conduct training courses for instructors at colleges and universities nationwide. Such an honor also contributed to the program's visibility and effectiveness.A total of 224 events were held between 2015 and 2022, with approximately 21,000 students participating. A student satisfaction rate of more than 80% was reported.
Accident-Free Bicycles Project	Junior high school and primary school students were the target audience for this project. Cathay Century utilized Cathay Life's school network service to expand the project's reach. The program collaborated with Ren-Ai Elementary School in Taipei City to conduct a semester-long classroom awareness program to promote the spirit of neighborliness.In 2022, Cathay Century held 38 campus transportation safety courses, with a total of more than 1,100 participants. Before that, Cathay Century held 147 transportation safety courses between 2020 and 2022, with a total of more than 4,500 students and teachers attending. A 96.04% satisfaction rate was reported, with at least 80% of schools hoping to hold at least one program each school year.

Sustainable Campus Project

Cathay Life began offering group insurance to students in 2017. In addition to providing insurance, Cathay Life worked with the K-12 Education Administration of the Ministry of Education to launch the Sustainable Campus Project. In 2019, the project began to focus on anti-drug initiatives and launched the Air Force, Army and Navy Project in collaboration with PaGamO, an online gaming learning platform. The project replaces the traditional dogmatic approach with game-based anti-drug education. Students can learn about anti-drug issues by correctly answering quizzes to unlock territories. The goal of the project is to help students identify drugs so they can say no to drugs.

Air Force - PaGamO Online Anti-Drug Mission	Army - Volunteers go on campus organize small Anti-Drug gaming competition	Navy - National Anti-Drug e-Sports Competition
Invited professors from National Taiwan Normal University and National Chung Cheng University to assist in formulating the questions, which will be reviewed and approved by the K-12 Education Administration of the Ministry of Education, and the questions will be put on the PaGamO platform for use by elementary and middle school students in Taiwan.	Sale persons all over Taiwan entered the campus to hold Anti-Drug gaming competitions in units of classes.	In cooperation with PaGamO and local education bureaus, combined with school subjects, the National Anti-Drug e-Sports competition"2022 Cathay Anti-Drug Heroes Competition" will be held. The final was held in July 2022.

Working with Trusted Partners to Care for Sub-Health Customers

To better serve our policyholders and fulfill our social responsibility in community engagement, Cathay Life has partnered with local clinics on the "I-Li-Ho Healthcare Service" initiative. The initiative started its trial service in the Taoyuan region in August 2022. The initiative served a total of 1,600 enrollees with a 97% satisfaction rate as of the end of 2022. The partnership with local clinics provided a personalized health management service managed by four health management expert categorie

Corporate Natural Disaster Loss Control Services

Provide Preventative Risk Management to Reduce Losses

Companies are susceptible to catastrophes, especially given intensifying climate change in recent years. Preventive actions and control measures can reduce risks and losses. Cathay Century researched, developed, and patented a solar power scale model, which is used as an instructional tool to strengthen risk assessment expertise and risk control in customers and help companies adopt the right preventative measures to strengthen operational efficiency.

Exchange of Experiences in Actual Losses

To increase internal risk assessor's risk awareness and professional capabilities relating to solar power system frameworks, in 2022, Cathay Century launched the first "Solar Power Puzzle Model," an instructional tool that has obtained one utility model patent.

Impacts from the "Solar Power Puzzle Model"
Strengthen employee's professional capabilities and risk control expertise	Exchange experiences with enterprise customers
During internal training, the scale model can demonstrate and give employees a better understanding of solar power modules, support beams, other ways to secure the modules, and potential losses from typhoons.	Offers customers more credible experiences, enabling them to adopt optimal measures to prevent loss and damage.

Loss Control Services and Seminars Help Enterprise Customers Respond to Underlying Risks

Cathay Century is leveraging its core function - "loss control" - to offer enterprise customers knowledge on risk prevention and management as well as professional assessments to help reduce catastrophe frequency and scale so that companies and customers can strive for sustainable operations on a secure foundation.

Leveraging Core Function of "Loss Control" to Facilitate Sustainable Corporate Development

Customized Loss Control Evaluation Plans

Considering the risks of flooding from heavy rainfall caused by extreme weather, Cathay Century is helping enterprise customers evaluate the adequacy of surrounding water drainage systems and vulnerable areas. Evaluations can serve as the basis for preliminary steps to upgrade factory flood alerts and water drainage systems, thereby reducing flood risks, claims, and scale of potential losses. Between 2013 and 2022, Cathay Century conducted 18 evaluations.
Cathay Century conducts on-site risk surveys and models fitting for Taiwan's natural disasters during ex-ante disaster prevention planning to produce an assessment plan. Between 2012 and 2022, Cathay Century compiled 176 risk assessment reports on typhoons, floods, and earthquakes to help enterprise customers and internal underwriting units. During the same period, Cathay Century provided 183 risk assessment data sets from internal underwriting units to enterprise customers inquiring about typhoon, flood, and earthquake insurance. In total, Cathay Century provided 359 sets of information between 2021 and 2022.
In 2020, Cathay Century became the first company of its kind to apply natural disaster models to simulate scenarios of loss and damages from climate change.
To help companies control and manage risks, mitigate operational loss from catastrophes, and enhance the quality of the solar power industry, Cathay Century conducted on-site surveys and collected information to assess risks and provide suggestions on defending solar farms against typhoons. Between 2015 and 2022, Cathay Century evaluated 56 solar farms.

Annual Loss Control Seminar

The annual loss control seminar was put on pause in 2021 and 2022 due to the COVID-19 pandemic.
Cathay Century hopes the pandemic abates and it can organize two annual loss control seminars in 2023. The tentative focus of the potential seminars is on compound risks to company operations, risks to emerging industries, green industries, corporate sustainability, and extreme weather. Cathay Century will also integrate general trends and any topics that customers are concerned with.

Taiwan is on its way to becoming a super-aged society. To help the public cope with the risks associated with demographic changes, Cathay has long been committed to caring for the middle-aged and elderly. Our solution is to provide various products and services to ensure that the economic security and healthcare needs of the target groups are met. We strive to fill any gap in social security to weave a safety net for older adults.

Creating a Safety Net of Comprehensive Solutions for the Elderly

Protection products for the elderly

We offer a wide range of insurance products that provide comprehensive physical, mental and financial protection for older adults.

Aspect	Project	Project Description
Physiological	Elderly protection	For older adults who may have difficulty securing health insurance coverage due to their age and health, Cathay Life has launched a series of customized products, such as the Elderly Series and Petty Amount Whole Life Insurance. [Jolene2]The products can meet the needs of the elderly for accident, medical, dementia and cancer insurance. Elderly policyholders who have previously purchased life insurance can also take advantage of the Policy Activation Service to transfer life insurance coverage to meet more immediate long-term care, medical or pension needs. The Policy Activation Service provides flexibility for senior policyholders to adjust their coverage planning.
Physiological	In-kind Payment Policies	Cathay Life has formed an alliance with external partners to become an industry leader in launching an in-kind-benefit insurance policy that allows policyholders to select from goods and services or cash claims, offering a wider range of coverage for cancer, long-term-care, catastrophic illness, critical illness and dementia. This flexibility ensures that policyholders can secure the most appropriate service when faced with long-term-care, or in the unfortunate event of cancer, have access to genetic testing services to improve treatment efficacy. A total of five new insurance products with in-kind benefits were offered in 2022. We will continue to work with Taiwan's long-term-care and precision medicine industries to create a blue ocean market to achieve a win-win situation for the policyholders, our company and society.
Psychological	Dementia care	According to the Taiwan Alzheimer Disease Association, there are more than 300,000 people with dementia in Taiwan, or one in every 77 people. In response to the increasing number of dementia patients, Cathay Life was the first to launch two cognitive impairment insurance products. The policies are coupled with a health management mechanism to encourage policyholders to walk more to reduce the risk of dementia. In the unfortunate event of dementia, the coverage provides immediate support in the early stages of the illness to ensure that the policyholder can secure the right treatment. It also provides personalized dementia care services to slow down the progression, giving the patient and family the right help in the fight against the illness.
Financial	Retirement finances	A happy retirement requires not only physical and mental health, but also sound retirement finances. Cathay Life offers a wide range of investment, annuity and premium installment products to meet the needs of retirement planning and asset allocation. We encourage the public to undertake early retirement financial planning to ensure a stable retirement income. Increasing life expectancy leads to a corresponding increase in daily living expenses, which can result in insufficient retirement funds.

A Platform for the Elderly: Splendid Life

Splendid Life is a resource integration platform for middle-aged and elderly people, the first of its kind. The platform includes a library, a wellbeing center, and a gaming center to provide a wealth of information on elderly care, elderly services, and dementia prevention games/questionnaires. The platform aims to provide easy access to information and meet the needs of society in caring for our older adults. The website has generated 1.22 million views by the end of 2022, with 750,000 engagements generated by the website's dementia prevention games. The platform engagement will facilitate the public's awareness of dementia prevention.

Thoughtful for the Elderly

Services	Action Plans
Elderly-Friendly marketing materials	Products designed for older adults not only meet the appropriate coverage planning, but our sales documents (DMs) also adopt a font size that is easier to read and a colloquial language to ensure that the readers can have full access and understanding of the coverage information.
Elderly service hotline	A dedicated customer service team has been created to prioritize questions from senior customers. The representative helps resolve the senior's policy-related questions by speaking at a slower pace and in more understandable terms. In addition, the representative presents relevant information about "added services for older adults" to ensure the customer has access to the resources needed while reminding the customer of points to consider to protect policyholder rights.
Healthy Home	In 2022, the "Cathay Healthy Home" empowerment project was launched in cooperation with Taipei Medical University. The project provided training in health certification, elderly care advancement, precision medicine and disease care to eligible sales employees. By the end of 2022, a total of 626 sales employees had participated in the empowerment project.
Safeguard Wellbeing for the Elderly	To safeguard the health of older adults and ease the burden on family members in caring for the elderly, Cathay Life focuses on the four major illnesses - fracture, dementia, disability and cancer - and provides health education information and care resources such as "Causes of Disease" and "Prevention and Aftercare." In this service, Cathay also collaborates with cross-industry partners to provide dedicated healthcare services to policyholders. This program already provided services to 2,880 customers by the end of 2022.
Anti-Fraud Tabletop Game	Cathay volunteers from around the country work with local police stations to bring "anti-fraud tabletop games" into the community. Through the games, we aim to help older adults recognize common fraud tactics so they can protect their life savings without falling prey to scams. A total of 52 sessions were held in 2022, with 2,688 participants attending.
Cathay Happiness Farm	To encourage older adults to be more active and reconnect with the community, Cathay Charity Foundation is working with long-term care facilities to establish four Cathay Happiness Farms in the northern, central, southern and eastern parts of Taiwan. The project allows older adults to stay active while doing farm work under the guidance of Cathay volunteers and community caregivers. Harvested fruits and vegetables also find their way to the elderly's dinner tables and into the lunch menus of nearby social service groups and schools.
University Social Responsibility for the Elderly	In collaboration with the University of Taipei's University Social Responsibility (USR) program, the project theme was "Active Aging Sports Institute Program Promotes Active Healthy Living for Older Adults in the City" and focused on health promotion for older adults. The project provided digitized physical education materials and trained 130 Cathay sales agents on how to lead the older adults in strength training, warm-up and stretching. The goal of the project is to help older adults exercise safely to improve their well-being and reduce the risk of sarcopenia for a healthy and happy retirement.

Promoting Easily Accessible Financial Services

Cathay FHC strives to promote financial inclusion by providing accessible, user-friendly, and affordable financial products and services, including insurance, bonds and loans.

Extend financial inclusion to the vulnerable

Pretty Amount Whole Life Insurance	As of the end of 2022, Cathay has approximately 258,000 active insurance policies, providing coverage of NT$82.8 billion, making Cathay the industry leader.To increase coverage for the general public, Cathay was the first industry player to roll out pretty amount whole life insurance in 2017, which has the highest coverage and can be enrolled by almost anyone. The product provides coverage to those who are often denied coverage due to age or poor physical health. The lower enrollment barrier and low premium make basic coverage available to the public.
Microinsurance	Cathay was the first in the industry to introduce microinsurance in 2009. We actively work with county and city governments and social welfare groups to provide basic insurance coverage through microinsurance to vulnerable groups.As of the end of 2022, active microinsurance policies undertaken by Cathay Life and Cathay Century provide coverage to 313,000 people, with the total insured amount reaching approximately NT$105.5 billion. Among the insured, 1,321 families have received immediate financial reimbursement through microinsurance.In 2022, Cathay Life won the "First Place" and "Business Performance Award" in the microinsurance competition organized by the Insurance Bureau of the Financial Supervisory Commission (FSC) for the third consecutive year.
Elderly-friendly products	Cancer has been one of the ten most common causes of death for 40 consecutive years, and the elderly are often unable to successfully purchase insurance by themselves due to their physical conditions. In view of this, CathayLife was the first to launch the exclusive cancer insurance products for the elderly in 2022, which cover elderly patients for up to 80 years old, with physical conditions that are not covered by the general cancer insurance without the need for additional premiums. This truly solves the pain points of insurance for the elderly, and achieve inclusive finance. From its initial launch in June 2022 until the end of the year, we sold 65 thousand policies with FYP of approximately NT$700 million.
Student Group Insurance	Since 2017, we have started offering student group insurance, providing coverage to 2.93 million students with a total insured amount of approximately NT$3 trillion. Cathay also works with the K-12 Education Administration to launch the "Sustainable Campus Project."

Agricultural Insurance

Cathay Century harnesses its core competencies to help Taiwanese farmers cope with the challenges of climate change. In 2016, we launched the first Mango Crop Insurance (linked to government disaster-aid program). This program provides coverage for mango losses caused by various weather conditions, including typhoons, torrential rains, cold damage, high temperatures (foehn winds), and prolonged heavy rains. Building on this success, we have since expanded our offerings to include Mango Crop Insurance (regional harvest), and Guava Crop Insurance (tied to typhoon wind speed and rainfall). Our crop insurance programs provide coverage for various types of crops. Crop insurance policies are tailored to the specific crop due to differences in the timing of planting, flowering, and the type of natural disaster it's susceptible to. Policies are also adjusted based on climate and changes in the crop. For example, the Mango Crop Insurance (regional harvest), launched in 2017, used the amount of regional harvest as a benchmark. If the actual harvest is lower than the guaranteed harvest, farmers can file a claim. This flexible approach allows farmers to file claims that are more appropriately tied to the harvest season. In addition, to provide precision claims service for its agricultural insurance products, Cathay Century integrated an automated digital service, introduced instant claims processing, and adjusted the loss cost ratio to mitigate the financial impact of typhoons and torrential rains. In 2022, Cathay Century's Guava Crop Insurance began using instant claims processing. This innovative approach has enabled us to initiate claims processing immediately when natural disasters such as torrential rains occur. We also proactively reached out to affected farmers via text messages, intending to complete claims payments as quickly as possible to help them replant and restore production levels. As of the end of 2022, Guava Crop Insurance had settled 186 claims, with a combined payout of approximately NT$353,000. In addition, Cathay Century actively participates in agricultural seminars where we share our knowledge and expertise to help farmers increase their insurance and risk management awareness and gain valuable market insights. By regularly reviewing our insurance products and making adjustments to our policies, we strive to provide farmers with the most comprehensive coverage possible. We want to ensure that, through the insurance reimbursement mechanism, they have the resources and support they need to rebound quickly and resume farming after natural disasters.

Small Personal Loans - Flex Loan

CUB was the first in the industry to launch the fully automated flex loan APP in 2019. This innovative online service allows customers to apply for, drawdown, and repay small personal loans all-in-one convenient location - the CUBE App, with loan approval in as little as 5 minutes. The service has been very well received by our customers. After years of observing the evolving demand for loans among different generations and groups, CUB launched a new flex loan solution that offers equal principal payments in 2022. With this loan option, the monthly payment amount is highly predictable and displayed in the CUBE App, with the newly adjusted payment amount displayed after each payment. By providing a clear and predictable repayment schedule, our equal principal solution helps customers easily budget their loan repayments into their monthly cash flow, enabling them to make more accurate personal financial allocations. The flex loan solution is free of personal engagement and contractual obligation, and offers a flexible repayment option that can effectively reduce the typical worries that come with loans for small investors. Flex loans can easily meet the financing needs of our customers, regardless of the amount of financing required.At CUB, our customers are our top priority. With this philosophy in mind, CUB is committed to providing innovative financial services that offer flexibility and digital empowerment. We hope that the CUBE App can provide our customers, whether they are young entrepreneurs or looking to start a family, with highly personalized and diverse loan services.

Preferential Loans for Social Enterprises

To support the development of social enterprises, CUB has been working with the Taipei City Government since 2017 to launch the "Preferential Loans for Social Enterprises" project. CUB also collaborates with the Small and Medium Enterprise Credit Guarantee Fund of Taiwan (Taiwan SMEG) to provide direct guarantee loans and low-interest preferential loans to eligible social enterprises. By leveraging and expanding the effectiveness of our business models, we can continue to make a difference in our society by helping social enterprises obtain operational financing. As of the end of 2022, CUB has provided loans totaling NT$81 million to a total of 15 social enterprises.

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