Regulations Governing Derivatives Transactions Conducted by Insurance Companies Article 4
An insurer meeting the following eligibility criteria and approved by the competent authority in accordance with the requirements of Paragraph 2 may engage in derivative transactions for hedging purposes with hedged items being anticipated investment positions:1. Eligibility criteria indicated in Article 5 Paragraph 1; and2. Approval from the competent authority in accordance with the requirements in Article 5 Paragraph 3 for engaging in derivatives transactions for enhancing the investment efficiency.When an insurer intends to engage in the derivatives transactions for hedging purposes with hedged items being anticipated investment positions, approval of the board of directors shall be obtained and the application form along with the following documents shall be submitted in advance to the competent authority for approval:1. Supporting documents for meeting the eligibility criteria in the preceding paragraph;2. Documents listed in Article 3 Paragraph 1 ; and3. Descriptions of the levels of influence of the following different factors on hedging effectiveness that can be specifically distinguished using the mathematical method for calculating the hedging effectiveness:(1) Influence of expected differences in the execution of portfolio asset allocation plans indicated in Paragraph 3 Subparagraph 1; and(2) Other factors than those indicated in the preceding item.An insurer approved by the competent authority to engage in derivatives transactions for hedging purposes in accordance with the requirements in the preceding paragraph shall follow the requirements below:1. It shall detail specific asset allocation plans for the expected portfolio and analysis of hedging effectiveness in official written documents before transactions; the said analysis of hedging effectiveness shall be reviewed by a risk management unit independent of the transaction department.2. When the hedging effectiveness obtained for the expected portfolio differs from that for the actual portfolio by 20% or more, as a result of the difference in the implementation of the asset allocation plan for the expected portfolio as mentioned in the preceding subparagraph, the value of transactions for the effective periods of respective transactions shall be included as part of the limits for derivatives transactions for enhancing the investment efficiency.
中文原文 保險業從事衍生性金融商品交易管理辦法第4條
保險業符合下列資格，且依第二項規定經主管機關核准者，得基於避險目的，從事被避險項目為預期投資部位之衍生性金融商品交易：
一、第五條第一項所列資格條件。
二、已依第五條第三項規定經主管機關核准得從事增加投資效益目的之衍生性金融商品交易。
保險業申請從事被避險項目為預期投資部位之避險衍生性金融商品交易，應經董（理）事會通過，並檢送申請書連同下列文件，向主管機關申請核准後辦理：
一、符合前項資格之證明文件。
二、第三條第一項所列文件。
三、計算避險有效性之數理方式能明確區別下列不同因素對於避險有效性影響程度之說明：
（一）第三項第一款所列預期投資組合資產配置計畫之執行差異影響。
（二）前目以外之其他因素。
保險業經主管機關依前項規定核准得從事避險目的之衍生性金融商品交易者，應依下列規定辦理：
一、交易前應於正式書面文件中，載明明確之預期投資組合配置計畫及避險有效性分析，且該避險有效性分析應經獨立於交易部門以外之風險管理單位覆核。
二、因前款所列預期投資組合資產配置計畫之執行差異，致按預期投資組合與實際投資組合計算之避險有效性差異數達百分之二十以上者，其交易存續期間之交易金額，應併入第九條所定增加投資效益目的之衍生性金融商品交易限額計算。
一、第五條第一項所列資格條件。
二、已依第五條第三項規定經主管機關核准得從事增加投資效益目的之衍生性金融商品交易。
保險業申請從事被避險項目為預期投資部位之避險衍生性金融商品交易，應經董（理）事會通過，並檢送申請書連同下列文件，向主管機關申請核准後辦理：
一、符合前項資格之證明文件。
二、第三條第一項所列文件。
三、計算避險有效性之數理方式能明確區別下列不同因素對於避險有效性影響程度之說明：
（一）第三項第一款所列預期投資組合資產配置計畫之執行差異影響。
（二）前目以外之其他因素。
保險業經主管機關依前項規定核准得從事避險目的之衍生性金融商品交易者，應依下列規定辦理：
一、交易前應於正式書面文件中，載明明確之預期投資組合配置計畫及避險有效性分析，且該避險有效性分析應經獨立於交易部門以外之風險管理單位覆核。
二、因前款所列預期投資組合資產配置計畫之執行差異，致按預期投資組合與實際投資組合計算之避險有效性差異數達百分之二十以上者，其交易存續期間之交易金額，應併入第九條所定增加投資效益目的之衍生性金融商品交易限額計算。