1. There are two major pieces of work (the Code Review and Sutton) and a number of themes that are the subject matter for this submission. The Insurance Council of Australia appointed me as the Independent Reviewer of the General Insurance Code of Practice, under the Code and the Terms of Reference, on 3 May 2012. 2. The Code Review work took about two years and involved the Code Issues Paper in October 2012 of 111 pages and the Code Review Report in May 2013 of 205 pages. The majority of my recommendations were accepted and the report has made a contribution to the rethinking of self-regulation and the place of voluntary codes in financial services. By then I was writing, with Professor Robert Merkin QC Sutton on Insurance Law for its 4th Edition. It is two volumes, 24 chapters and about 2100 pages excluding tables and index; my contribution was 12 chapters totalling about 960 pages. 3. The Code Review work, particularly on government agency regulation and self-regulation, influenced the pervasive material in Sutton on regulation. It was the subject of the AIDA Rome paper in 2014 on Principles for Self-Regulation; the paper was published by AIDA. 4. Sutton was published in 2015. Its themes are set out below. Those themes are in turn influences in the other work for this submission. There are seven main themes in the publications which I present in this submission. 5. The historical influences in relation to my Code Review and the historical contextual material in Sutton stimulated my interest in the wider influences on the development of commerce, insurance and law, with a central interest in the ethical foundations of the law and regulation. This aspect was also developed in the Masel Lecture and the article William Murray, Lord Mansfield: His Life, Times and Legacy – Good Faith and Good Works. 6. There had been a number of issues raised in my Code Review about mental illness, insurance and discrimination. I spoke at AIDA in Rome 2014 on Insurance Discrimination Law and the paper was published by AIDA. Then in 2016, the Australian Centre for Financial Studies commissioned me to write the ACFS MID Paper on the use by insurers of mental illness data. The historical perspective and the regulatory framework were important features of both papers. 7. A number of the Sutton themes were first opened out in my Professional Indemnity Insurance Law. The main themes were, in decreasing order of connection with Professional Indemnity Insurance Law, as follows. The first theme is the identification, development and application of the indemnity principle. The second is the adaptation and application of the analysis of contracts by primary and secondary obligations. This theme is in Sutton on the main concepts in insurance as well as liability insurance issues. The Liability Disputes Chapter condenses this thinking and account. The third theme was a renovation of how life insurance issues should be analysed and presented. This life insurance material was then adapted and infused with practical guidance on the decision making process on some issues for the FOS Life Insurance Manual. I developed an aspect of life insurance in the TPD Article. Each of these themes are in my submission original in concept and execution. Each has influenced the development of the law by legisation and the courts.

Essay One examines the asymmetric information problem between primary insurers and reinsurers in the reinsurance industry and contributes uniquely to the separation of adverse selection from moral hazard, if both are present. A two-period principal-agent model is set up to identify the signals of adverse selection and moral hazard generated by the actions of the primary insurer and to provide a basis for corresponding hypotheses for empirical testing. Using data from the National Association of Insurance Commissioners (NAIC) and A.M. Best Company, the empirical tests show that the problem of adverse selection exists in the reinsurance market between the affiliated insurers and non-affiliated reinsurers, and even between closely related affiliated insurers and reinsurers. There is no evidence indicating the presence of moral hazard in the reinsurance market. To address the issue of soaring property insurance premiums and coverage availability in states that are subject to hurricane risks, state and federal governments have not only regulated the private insurance market but have also intervened directly into markets by establishing government-funded insurance programs. With coexisting public and private insurance mechanisms and price regulation, the risk of cross subsidization and a subsequent moral hazard problem may arise. By using data from the Florida Citizens Insurance Corporation, the Florida Hurricane Catastrophe Fund, the Flood Insurance and the private homeowner insurance market in Florida from 1998 to 2007, the second essay examines the moral hazard problems arising from government regulation and involvement in the private insurance sector. In sum, the provision of national flood insurance is found to be positively related to the population growth in the state of Florida, which shows that state immigrants can take advantage of the lower cost of flood insurance when relocating in higher-risk areas. Further, we find that national flood insurance and the catastrophe fund complement the development of the private insurance sector, while the residual market hinders the development of private property insurance market.

Consulting one's personal finance with a financial advisor should allow even the less financially educated to optimize their financial portfolio. The client-advisor relationship is however a strong case of information asymmetry, which can result in harm being made to the client by the advisor, either knowingly (when the advisor attempts to maximize their own utility, even at the client's cost) or unknowingly (e.g. when the advisor is inadequately qualified in the field). One of the ways to reduce such risks is a proper regulatory framework, which is the core subject of the thesis. At first, the thesis analyzes the current state of financial advisory in the Czech Republic (how it is performed, what part of the population benefits from it, what the main problems are etc.) and shows how the client-advisor interaction ought to be performed. The main part of the thesis describes what the main problems and risks for the client are and which legal measures exist that can reduce these negative effects. The current legal framework in the Czech Republic is then thoroughly analyzed and compared with best-practice of select EU states. Finally, legal measures which are currently being discussed or passed as laws are mentioned. In the very end, other measures which could help make the field of financial advisory in the Czech Republic more efficient are suggested. The aim of the thesis is to provide a compact overview of the regulatory measures currently affecting financial advisory in the Czech Republic, show them in the international context and test the hypothesis that the Czech market of financial advisory is still relatively immature and that further appropriate regulation would improve its effectiveness resulting in higher protection of clients.

This dissertation contributes to the discussion on the existence and extent of systemic risk in the insurance sector and its regulation. It consists of four self-contained empirical studies. Chapter one contains the introduction and motivation. The second chapter addresses the question of what characteristics an insurer exhibits such that it contributes to potential financial sector instability. The study analyzes stock losses of U.S. insurers and the U.S. financial market during the financial crisis of 2008, and examines idiosyncratic characteristics proposed by regulators to identify systemically important insurers. It employs three well-known measures of systemic risk in cross-sectional and probit regressions. Chapter three examines the relation between asset price bubbles and systemic risk among a global sample of insurance companies over a period of almost thirty years. The fourth chapter focuses on how stock market investors evaluate the presence of systemic risk in the U.S. insurance sector, and whether they price in indicators of systemic risk in insurer stocks. This study employs five different asset pricing models over time periods before, during, and after the financial crisis of 2008. The fifth chapter analyzes the relation between insurers' capital and their profitability around the world over a nine-year period. Causality between the measures of capital and profitability is established using an instrumental variable approach.

確保保險公司之清償能力是保險監理單位之首要目標，監理單位使用各種不同的監理制度以確保保險公司的財務體質，並防止保單持有人因為保險公司失去清償能力所遭致之損失。在各種監理制度中，RBC監理制度主要是衡量保險公司的資本適足性並且提供監理單位採取相關監理行動的準則；VaR監理制度則是目前銀行業之監理所嘗試採取的新監理方式，而且VaR也被廣泛運用在銀行內部的風險管理系統中，由銀行監理的發展趨勢看來，可以預期保險監理將來也會以VaR監理制度為主。 本研究的主要目的在於探討VaR監理制度適用在保險監理制度上的可行性以及與現行RBC監理制度的比較。在探討VaR監理制度的可行性前，本研究先就VaR監理制度運用在保險監理的前提以及影響保險公司失去清償能力的原因進行探討。 在瞭解影響保險公司失去清償能力的原因後，本研究分別對於在VaR監理制度下保險公司如何分別針對各種不同的風險因子決定所需持有的資本額度。經過相關文獻的探討以及考慮保險業的行業特性，本研究建議市場風險與核保風險可以用VaR計算其資本額度；信用風險由於尚未有十分完善的量化模型，所以本研究建議應以徵信方式因應此一風險，而業務風險則是以規定一固定比率的資本額度因應之。本研究也建議待保險公司累積足夠的VaR使用經驗後，保險監理制度可以開放使用預先承諾法。 在運用VaR於保險監理上時，本研究也建議監理單位必須注意有關VaR的實行風險與模型風險的影響，同時也強調監理單位的檢核與市場制度的力量是VaR監理制度能夠充分運作的必要條件；此外，由於制度實施的初期，無法驗證模型與資料的可用性，所以仍必須輔以最低固定比率的要求，以確保保險公司的清償能力。 在探討VaR運用在保險監理制度上的可行性後，本研究將進一步比較VaR與現行RBC監理制度的比較。本研究主要是由制度實行的難易程度、衡量資本適足的準確性，以及監理的成本三方面進行比較。制度實行的難易程度主要是比較VaR與RBC制度的複雜度與可行性，以及與公司內部風險管理和全球金融監理趨勢的整合程度。衡量資本適足的準確性主要是比較二種制度何者更可以衡量保險公司所面臨的各種風險、清償能力的效力，以及保險公司投資組合的風險分散效果。至於監理的成本則可分為監理者、保險公司與社會成本三方面來探討。 透過本研究的比較結果發現VaR監理制度除了在制度的複雜度與可行性較RBC制度差以外，其他項目皆優於RBC監理制度。除此之外，VaR與RBC都各自有其監理上的道德風險。本研究建議如同銀行監理一般，保險監理制度應朝向VaR監理制度的趨勢前進，以更可以確保保險公司的清償能力以及投保大眾的權益。 / Assuring insurance company solvency has always been the focal point of insurance regulation. Regulators use various methods to promote insurers' financial strength and protect policyholders from losses due to insolvency. Among these methods, risk-based capital (RBC) is used to measure the insurer's capital adequacy and provide the relative action rule for the regulator, and the VaR (value-at-risk) regulation is new regulatory type the bank regulator attempt to adopt. Besides the regulatory application, VaR is also used in bank's risk management system broadly. We can expect the VaR-type regulation will be the new insurance regulation in the future according to the development of bank's regulation. The methodology of this study adopt is literature review. The most important purpose of this study is to explore the feasibility of VaR-type insurance regulation and compare the VaR regulation with current RBC regulation. Before the regulation system examination, this study firstly discusses the presupposition of the VaR regulation application and the causes of insurer insolvency. For the purpose of developing the VaR-type capital requirement in insurance regulation, this study proposes that market and underwriting risk capital requirement can be directly calculated in VaR; credit and business risk capital requirement should be regulated a fixed-rate capital amount. This study also proposes the application of precommitment approach when the regulator assure the insurer accumulate good experience in VaR. In addition, this study also addresses some points for attention of VaR insurance regulation. The other purpose of this study is to compare the RBC and VaR through the regulatory implementation, solvency measurement, and regulatory cost. The result of this study indicates that VaR is superior to RBC in any aspect, besides the complexity and feasibility. In addition, VaR and RBC both have their own regulatory moral hazard. This study suggests VaR should be used in the insurance regulation as other financial regulation in the future.

Submitted by Priscilla Araujo (priscilla@ibict.br) on 2016-10-06T19:53:44Z No. of bitstreams: 2 license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) Lizzie Karen do Carmo Neri_Mestrado_2016.pdf: 3855588 bytes, checksum: 9224c9538499fb6ec9a7d0869c819877 (MD5) / Made available in DSpace on 2016-10-06T19:53:44Z (GMT). No. of bitstreams: 2 license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) Lizzie Karen do Carmo Neri_Mestrado_2016.pdf: 3855588 bytes, checksum: 9224c9538499fb6ec9a7d0869c819877 (MD5) Previous issue date: 2016-05-18 / Submitted by Priscilla Araujo (priscilla@ibict.br) on 2016-10-06T19:53:46Z No. of bitstreams: 2 license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) Lizzie Karen do Carmo Neri_Mestrado_2016.pdf: 3855588 bytes, checksum: 9224c9538499fb6ec9a7d0869c819877 (MD5) / Made available in DSpace on 2016-10-06T19:53:46Z (GMT). No. of bitstreams: 2 license_rdf: 0 bytes, checksum: d41d8cd98f00b204e9800998ecf8427e (MD5) Lizzie Karen do Carmo Neri_Mestrado_2016.pdf: 3855588 bytes, checksum: 9224c9538499fb6ec9a7d0869c819877 (MD5) Previous issue date: 2016-05-18 / A sociedade e os diversos tipos de organização precisam gerar, processar e aplicar a informação, de forma eficiente, baseada em conhecimentos, para obtenção apropriada de produtividade e de competitividade. Com o entendimento de que uma regulação eficiente do mercado de saúde suplementar exige informação e conhecimento profundo de sua dinâmica, a pesquisa, que teve como objetivo levantar e analisar as mudanças de planos de saúde realizadas pelos consumidores entre 2010 e 2014, com base nas informações enviadas pelas operadoras de planos de saúde à Agência Nacional de Saúde Suplementar (ANS), além de discutir como essa informação pode contribuir para a regulação da saúde suplementar, propõe a utilização dos sistemas de informação da ANS para o tratamento e análise de dados relacionados às mudanças de plano de saúde dos beneficiários entre as operadoras para colaborar para o conhecimento do mercado de planos privados de assistência à saúde e auxiliar no estabelecimento de prioridades e na formulação de diretrizes na área da saúde. A coleta dos dados foi realizada com auxílio de consultas SQL, nas bases de dados da ANS, com base nas especificações pré-determinadas, ou seja, a partir da prévia definição dos critérios, filtros e delimitações de campos, das tabelas e do intervalo de tempo para as extrações dos dados. Foi realizada a extração de dados das bases de dados de beneficiários de planos de saúde, de operadoras e de produtos, para análise e discussão dos dados relacionados às mudanças de planos de saúde no Brasil. Além disso, foram levantadas as estatísticas de acesso ao guia de planos da ANS e os resultados das buscas por termos selecionados, por haver relação com o tema mudança de plano de saúde na web com auxílio da ferramenta “google trends”. Esta pesquisa constatou a importância da grande base cadastral de beneficiários de planos de saúde, que pode ser analisada sob diversas óticas, para a compreensão do mercado da saúde privada, com a utilização de inúmeras variáveis e com focos diferentes. Como demonstraram os resultados, é possível a utilização dessa base para a compreensão da dinâmica das mudanças de plano de saúde e consequentemente para o aumento do conhecimento da saúde suplementar, o que traz importantes benefícios para o estabelecimento de diretrizes na área da saúde. / The society and the various types of organization need to generate, process and apply efficiently knowledge-based information appropriate for achieving productivity and competitiveness. With the understanding that effective regulation of the health insurance market requires information and thorough understanding of its dynamics, the research aimed to survey and analyze the health plan changes made by consumers between 2010 and 2014 based on the information sent by health insurance providers to the National Agency of Supplemental Health (ANS – Agência Nacional de Saúde Suplementar), and discuss how this information can contribute to the Regulation of Health Insurance, proposes the use of ANS information systems for the processing and analysis of data related to plan changes health of beneficiaries among operators to contribute to the knowledge of the private health plans market and assist in setting priorities and formulating guidelines in healthcare. Data collection was performed using SQL queries in the ANS database based on predetermined specifications, i.e. from the previous definition of the criteria, filters and boundaries of fields, tables and time interval for the extraction of data. It was held extraction of data in databases of health plans, providers and products for analysis and discussion of data related to health insurance changes in Brazil. In addition, they raised access statistics to guide the ANS plans and results of searches for selected terms to have relation with the theme health plan change on the web with the help of google trends tool. This survey found the importance of large cadastral base of beneficiaries of health plans, which can be analyzed in various, optical and understanding of the private healthcare market, and with the use of numerous variables and with different focuses. As shown by the results, using this basis for understanding the dynamics of health plan changes and consequently to the increase in supplementary health knowledge is possible, which has important benefits for the establishment of guidelines in health care.

台灣壽險業的利差損問題持續存在，但若想要進一步開放新投資項目，應先檢視新投資工具之特性以及研究對應之保險監理規範之修訂。 本研究針對國外另類投資進行實證分析，考慮風險與報酬之間的抵換關係(Trade-Off)，以Rockafeller and Uryasev (2000)以及Campbell,Huisman and Koedijk (2001)提出之投資組合模型，建立平均值-風險 值(Mean-Value-at-Risk)之 效 率 前 緣 和 平 均 值-條 件 風 險 值(MeanConditional Value-at-Risk)之效率前緣，探討另類投資對投資組合效率的影響，並檢視相關保險監理規範的適宜性。 實證結果顯示不同資產類別(Assets Class)之間的相關性低，加入另類投資的標的能夠提升投資組合的效率，因此建議可以開放一些另類投資的項目，或是設定門檻進行監理。 / Recently, many insurance companies in Taiwan increased their investments in foreign countries substantially due to the inadequacy of domestic investment markets. Some insurers started or have been preparing to invest in emerging alternative investment tools such as private equity funds and hedge funds. However,there is a trade-off between return and risk. In this study we utilized the methods developed by Rockafeller and Uryasev (2000) and Campbell, Huisman, and Koedijk (2001) to conduct risk-return analyses for the insurance companies who are interested in alternative investments. Our approach extends the traditional Mean-Variance approach by introducing value at risk (VaR) and conditional VaR as risk measures. We found that the correlations among asset classes were low and alternative investments could enhance the investment efficiency of insurance companies. We suggest loosening some regulations accordingly.

為保險業跨業經營預先佈局、增加保單持有人之投資選擇權及因應市場利率之低糜，我國擬於近日推出投資型保險，然而投資型保險基於其特有之性質，其監理自應與一般傳統型保險有所不同。本文先就投資型保險作一定義，並論述其性質及特色，次敘述其歷史發展沿革，再予以介紹其主要之種類。而關於投資型保險監理部分，一般來說，保險監理可分為財務監理及業務監理二部分，本文即依循此二面向分別作一探討。就財務監理部分而言，分就分離帳戶之規範、資金運用規範、責任準備金提存之規範、解約金之規範及稅賦規範五個議題作分析探討，再行提出建議。另一方面，就業務監理部分而言，則分就經營資格規範、資訊揭露規範、商品規範及銷售規範四個議題作分析探討，再行提出建議；最後總結全文以提出結論並針對我國投資型保險之監理提出建議。 / For facilitating of cross-business operation of the insurance industry, increasing policyholders’ choices in financial services, and shifting attach of interest risk, investment linked insurance products will introduced into the Taiwan insurance market soon. Based on it’s special features, the regulation of investment linked insurance should be different from the regulation of traditional life insurance. This paper defines the scope of investment linked insurance and discourses it’s nature and special features in the first place, and then describes it’s historical evolution and main types. In terms of insurance regulation, it is generally divided into two broad categories: i.e. financial regulation and market conduct regulation. This paper studies on the issues of regulation of investment linked insurance in such an approach. With regard to financial regulation of investment linked insurance, five aspects of regulation of investment linked insurance are examined: separate accounts, investments, liability reserves, surrender cash value and tax. With regard to market conduct regulation, this paper includes four aspects: operational qualification, information discourse, products and marketing. Finally the author submits his conclusion and recommendations to the regulatory authority to enhance the framework of regulation of investment linked insurance in Taiwan.

Submitted by Danielle Cavalcante Duarte (dc.duarte@gmail.com) on 2016-01-21T15:37:14Z No. of bitstreams: 1 2016.01.18_Conflitos.de.Agência.no.Consórcio.DPVAT_pós.defesa.pdf: 898489 bytes, checksum: a4aaf912a30b7b1326ac452f6227997e (MD5) / Approved for entry into archive by BRUNA BARROS (bruna.barros@fgv.br) on 2016-02-03T18:17:24Z (GMT) No. of bitstreams: 1 2016.01.18_Conflitos.de.Agência.no.Consórcio.DPVAT_pós.defesa.pdf: 898489 bytes, checksum: a4aaf912a30b7b1326ac452f6227997e (MD5) / Approved for entry into archive by Maria Almeida (maria.socorro@fgv.br) on 2016-02-11T18:40:06Z (GMT) No. of bitstreams: 1 2016.01.18_Conflitos.de.Agência.no.Consórcio.DPVAT_pós.defesa.pdf: 898489 bytes, checksum: a4aaf912a30b7b1326ac452f6227997e (MD5) / Made available in DSpace on 2016-02-11T18:41:06Z (GMT). No. of bitstreams: 1 2016.01.18_Conflitos.de.Agência.no.Consórcio.DPVAT_pós.defesa.pdf: 898489 bytes, checksum: a4aaf912a30b7b1326ac452f6227997e (MD5) Previous issue date: 2016-01-11 / Diferentes arranjos institucionais resultam em diferentes incentivos para a realização de trocas econômicas. Com efeito, estruturas regulatórias implementadas em determinado contexto histórico-econômico podem resultar em consequências diversas daquelas originariamente pretendidas, impondo ao regulador a necessidade de constante monitoramento e de intervenções com vistas a diagnosticar e corrigir ou minimizar possíveis distorções nas relações entre os atores envolvidos. Assim, esta dissertação tem por objetivo analisar o funcionamento do Consórcio do Seguro DPVAT como mecanismo de conexão entre seus diversos stakeholders. Pretende-se analisar a existência de conflitos de interesses derivados das diversas relações entre as partes interligadas – geradas pelo arranjo institucional firmado para a gestão dos recursos arrecadados com os prêmios pagos pelos proprietários de veículo automotor para o Seguro de Danos Pessoais Causados por Veículos Automotores de Via Terrestre, ou por sua carga, a Pessoas Transportadas ou Não (DPVAT) – que possam suscitar intervenção regulatória no sentido de evitá-los, ou, ao menos, mitigá-los. A pesquisa é conduzida a partir da identificação dos comportamentos esperados de agentes econômicos autointeressados, tendo por referência os pressupostos da Nova Economia Institucional sob a perspectiva da Teoria da Agência, e do exame das principais mudanças legislativas havidas na estrutura do seguro obrigatório de trânsito no Brasil nos últimos 50 anos. Na sequência, com base em elementos teóricos e empíricos, foram identificados e analisados três conflitos de agência entre os stakeholders do Consórcio DPVAT: o primeiro seria aquele havido entre a entidade gestora do Consórcio DPVAT (agente) e as sociedades seguradoras consorciadas (principal); o segundo conflito observado refere-se à relação mantida entre a entidade gestora do Consórcio DPVAT (agente) e o órgão regulador (principal); e, por fim, o conflito de agência existente entre a seguradora que administra o referido consórcio (agente) e os proprietários de veículo automotor (principal). / Different institutional arrangements result in different incentives for performing economic exchanges. Indeed, regulatory frameworks implemented in a particular historical and economic background may produce results different from those originally intended, therefore imposing to the regulator the need for constant monitoring and intervention in order to diagnose and correct or minimize possible distortions in the relationships among actors. Thus, this dissertation is proposed to analyze the operation of the DPVAT Consortium as a connecting mechanism between its various stakeholders. The goal is to check potential conflicts of interest that may arise from the various relationships between these stakeholders – set up by the institutional framework established to the management of the premiums paid by motor vehicle owners for their mandatory motor third-party liability insurance (known as DPVAT insurance in Brazil) – that may foster regulatory intervention in order to avoid such conflicts or, at least, to mitigate them. The survey is based on identifying the expected behavior of economic agents in their own interest, according to the assumptions of the New Institutional Economics from the perspective of the Agency Theory, and on the examination of the main legislative changes in mandatory motor third-party liability insurance in Brazil over the last 50 years. Subsequently, three agency conflicts between DPVAT Consortium stakeholders were identified and analyzed based on theoretical and empirical evidence, arising from: (1) the relationship between the managing body of the DPVAT Consortium (agent) and the insurance companies that are an integral part of the Consortium (principal); (2) the relationship between the managing body of the DPVAT Consortium (agent) and the regulatory body (principal); and (3) the relationship between the insurance company that operates the DPVAT Consortium (agent) and the motor vehicle owners (principal).

近年來海峽兩岸利率持續走低，已經對壽險公司之財務產生負面影響，故銷售固定利率保險商品之壽險業者，其資金運用報酬與業務成本間之利差損現象日益擴增，為避免財務負擔日增而影響其清償能力，市場趨勢乃轉向能將風險大部分轉移給保單持有人並讓其分享大部分投資利得之投資型保險商品。本文就海峽兩岸投資型保險商品，從法規架構、監理體系、商品種類內容、市場行銷等方面加以詳細比較分析，並以1988-1994年英國銷售投資型保險商品所發生之退休金不當銷售弊案(mis-selling scandal)為借鏡，進而歸納出所面臨之各種問題，再針對此等問題提出可能解決之道，作為兩岸發展投資型保險之參考。 關鍵字：投資型保險、投資連結保險、變額保險、指數連結保險、指數連結年金、萬能壽險、變額萬能保險、分紅保險、利率風險、不當銷售、英國退休金不當銷售弊案、保險監理、保險法沿革。 / With the continued decline in interest rates having an adverse impact on Taiwan and Mainland life insurance companies' balance sheets, the insurance companies that sell the traditional guaranteed products have experienced the increasing interest loss resulted from the gap of their investment returns and operation costs. To avoid the companies from insolvency crisis arising out of the increasing financial burden, there is a trend, recently in both Taiwan and Mainland markets, that the insurance business focus has been averted from the traditional products toward investment-linked products that transfer most risk to policyholders and enable them to share in most investment gains. This paper compares the investment-linked insurance between Taiwan and Mainland markets in the viewpoints of the legal structure, regulation systems, variety of products and marketing of investment -linked products. This paper also analyses the famous U.K. mis-selling scandal in 1988-1994, and tries to make this scandal into a valuable lesson to both markets. After listing the issues and problems which are encountered by the insurance companies, the suggestions for resolving such issues and problems are submitted as the conclusion of this paper. Key Words: Investment-linked insurance, Variable insurance, Equity Index Insurance, Equity Index Annuity, Universal life insurance, Variable universal insurance, With-profit insurance. Risk of interest rate, Mis-selling, U.K. mis-selling scandal, Insurance regulation. History of insurance law