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.
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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.
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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."
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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.