Fubon Insurance, meanwhile, also makes sure customers who face a major accident 5.4 Innovative Financial Services or an emergency or disaster can have claims processed immediately. To make that E n S t a k e h Fubon Financial Holdings continues to pay close attention to the impact of our evolving society g happen, the personal insurance and commercial insurance divisions each set up an a g and works to link together its core competencies in the financial industry to promote innovative e m n "emergency response task force" in emergencies, and the persons in charge take the o l

new financial products and services, such as microinsurance policies, charitable trusts, and d initiative to contact customers who are facing difficult situations. They also stay on top e r localized insurance services, with the aim of supporting Sustainable Development Goals (SDGs) t of subsequent developments while offering any necessary assistance, an approach that and assisting in the elimination of poverty by using our financial competencies. The Company has bolstered customer satisfaction. also promotes inclusive and sustainable financial growth through the continual development S t S u

of Fubon Life's " Boundless Project ". The program utilizes the power of the financial industry r

Beyond setting up task forces and activating fast-track claims services, Fubon Insurance s a t t a i n also follows the provisions of its Emergency Contingency Plan. It estimates the potential to diminish the rural-urban divide and also gives young people a chance to land a high-quality e g y losses and impact of the incident based on the policies that could be affected, and job in their hometown. By doing so, Fubon directly helps customers and the general public to a b i

spread the benefits of the financial industry to every corner of society. l i reports the findings based on the statistical forms and reporting procedures outlined in t y the Plan. This enables management to immediately have a clear picture of the overall situation and ensures that the entire organization has detailed information and presents Initiatives 2018 Action Plans Results G C o o

it publicly in a consistent manner, easing potential concerns of the public, investors and r v

Total microinsurance premiums collected p e r regulatory authorities. Continued to promote microinsurance in 2018 for microinsurance policies o n r

Microinsurance a t e policies and achieved annual sales amounted to NT$6.63 million, resulting in a n When the Hualien earthquake and the Puyuma express derailment occurred, Fubon Policies targets. an achievement rate of 130% compared c Insurance immediately activated its emergency response mechanism. The person to the original target of NT$5.10 million. e in charge quickly mobilized the 0800 Customer Service Center and claims staff to Total assets under management for charity I L

Increased total assets under n e a d immediately check victim information. Temporary service centers were also set up at the trust amounted to approximately NT$ v

management for charitable trust. e s t Charitable 1.285 billion, up 43% from 2017. i

scenes of the disasters to provide claims advisory services for affected households. n m

Trust g

Increased funds collected from charitable A total of about NT$143 million in donations e n activities and donations conducted by were collected through charitable trust, an charitable trusts. increase of 21% compared to 2017. t

Fubon Planned to recruit 6,000 sales agents for In 2018, 7,224 sales agents were recruited F i I n n

Boundless tied-agent channel, and establish 15-18 and 16 new "Boundless Project" sales offices a n c e o

Project new "Boundless Project" sales offices. were established. v a t i v 5.4.1 Microinsurance e The primary purpose of microinsurance is to lend assistance to groups of individuals who are not eligible for public assistance but cannot afford standard commercial insurance. The policies P r a c G o l d feature inexpensive premiums to protect disadvantaged families in the event of a sudden accident, t e n thereby alleviating the shortcomings of government social insurance programs and social assistance i c mechanisms. e s Fubon Life and Fubon Insurance have teamed up with local county and city governments through a program organized by the Fubon Charity Foundation to extend microinsurance policies to L H e n

eligible individuals in need. In addition, by establishing a close-knit volunteer network which linked o n d

together our sales agents and social welfare groups at the grassroots level, we were able to identify e s t i n g On the day of the hualien earthquake, fubon insurance sets coverage gaps among disadvantaged groups, giving our sales agents the opportunity to explain the up a service counter to help policyholders file claims and helps get supplies to victims. advantages and importance of microinsurance policies to disadvantaged groups and help them apply for insurance. In doing so, we are extending a helping hand and providing additional protection to

the breadwinners of disadvantaged households. C T e n a r d In 2018, in addition to cooperating with local governments of Taipei City, New Taipei City, e County, Kaohsiung City, , and Hualien City, Fubon also teamed up e r with numerous organizations, including World Vision, Chinese Christian Relief Association, Good Shepherd Social Welfare Foundation, Rehabilitation Association for the Advancement of Youth, and the Autism Society of , thereby increasing the number of people who were able to receive assistance. 67 Fubon Life and Fubon Insurance Microinsurance Results (2).Total assets under management in charitable trust grew from NT$893 million in 2017 to NT$1.285 billion in 2018, an increase of 43%. Actual Actual Actual (3).As of the end of 2018, Taipei Fubon Bank managed a total of 23 different types of charitable Premium Premium Premium Sales trust. And a total of NT$143 million in donations were collected through charitable trust in 2018 as Achievement Sales Target Microinsurance Income Income Income Target in Rate in 2019 bellow table. (NT$) in (NT$) in (NT$) in 2018 2016 2017 2018 Educational Sports and Athletics Social Welfare

Fubon Insurance 983,985 1,112,681 1,500,280 950,000 157.9% 1,000,000 charitable trust consisting of approximately 1 charitable charitable trusts consisting NT$1.67 million in total donations 15 7 supports the following programs: trusts consisting of approximately NT$62.89 of approximately Fubon Life 4,539,746 4,648,734 5,129,175 4,150,000 123.6% 4,200,000 million in total donations are used Taiwan Junior Football Tournament (once ● per quarter): a total of approximately NT$78.41 to support the following programs: million in total NT$1.19 million was donated. Total 5,523,731 5,761,415 6,629,455 5,100,000 129.99% 5,200,000 Scholarships: 52 scholarships donations provided ● Football promotion events (such as were awarded, totaling about ● financial support NT$66,000. providing financial resources to elementary to a total of 364 Note: In 2018, Fubon Life had a total of 13,108 policyholders in effect; and Fubon Insurance had a total of 4,532 and junior high schools located in rural foundations, Donations: About NT$62.23 policyholders in effect. ● areas to promote football, including associations, million was donated to 64 purchases of sports equipment and organizations, organizations, groups, or schools. In 2019, Fubon will continue to promote microinsurance, increase renewal rates for existing training): donated approximately groups, or schools. NT$480,000. policies, and enhance cooperation with large-scale social and charitable foundations to increase the number of people we help. In addition to increasing budgets and provided expanded services, we will work to better meet the needs of customers by creating new In the future, Taipei Fubon Bank will continue to promote charitable trust services by cooperating insurance products as well as offer insurance products that provide basic protection for with news and media outlets on promotional efforts and pursuing more referrals from settlors of charitable trust. In addition, we will continue working to develop standardized application documents, the financially disadvantaged. In doing so, we will enable greater numbers of economically expand the scope of existing charitable trust (in terms of monetary value), and increase the number of disadvantaged people to acquire insurance and gain a certain degree of protection from donations to expand the number of beneficiaries so as to indirectly bring about a more equitable and economic burdens in the event of an accident, thereby helping individuals and families avoid inclusive society. Charitable trust is an important vehicle for Fubon to drive more social good, further to hardship and enabling our insurance products to generate more positive energy within society. spread more positive energy throughout society and make the world a better place.

5.4.2 Charitable Trust 5.4.3 Fubon Boundless Project Our society is continually changing, and the gap between rich and poor has widened due In response to the fact that rural communities in Taiwan are at a disadvantage in terms of available to the unequal distribution of wealth. In response, Taipei Fubon Bank is helping to develop insurance options, Fubon Life launched the "Boundless Project" in 2014. In addition to maintaining innovative ways to tackle these challenges in a positive way, such as by establishing new types our existing long-term commitments and favorable position in urban areas and sustaining our of charitable trust which allow us to directly and indirectly promote charitable endeavors. industry-leading growth, we have also set our sights on incorporating our successful experiences in urban areas into other parts of Taiwan, especially central and southern regions. Our aim is to In addition, we are teaming up with customers to engage in philanthropic efforts, thereby introduce insurance concepts and services into more towns and counties throughout Taiwan and extending extra care and support to those most in need in society. Some of our more notable provide local insurance services. accomplishments as follows. To find and encourage new talent to join our efforts, Fubon Life has also organized various programs (1).Taipei Fubon Bank continues to promote charitable trusts and optimize service procedures to attract local sales professionals from other local industries to make a career switch to Fubon. in order to boost operational efficiency. In 2018, a total of about NT$143 million in donations The strategy allows Fubon to make use of local talent to provide local services and also gives young were collected through charitable trusts, an increase of 21% compared to 2017. people a chance to land a high-quality job in their hometown without having to move to a new city just for the sake of pursuing a career. In addition to helping bridge the urban-rural divide, the plan aims to fulfill Fubon's social responsibility and make Fubon a better company — not only by creating more job opportunities, but by creating more delighted families. Our goal is to help make tangible improvements in every city and region in Taiwan, attract local job-seekers and potential clients, and enable Fubon personnel to become the best financial service professionals in their local areas. 68 E n S t a k e h g

Fubon Life analyzes and seeks to develop and establish strategic sales offices in counties (2) The tied-agent channel planned to recruit 6,000 sales agents in 2018, and the actual a g e m n with market potential, reflecting the company's active, adaptive, and flexible approach to recruitment number was 7,224, exceeding the recruitment target by 20%. o l doing business. When Fubon sales agents have the abilities and desires to achieve success d e r in their local areas, Fubon Life is delighted to give them an opportunity to achieve their The "Boundless Project" is one of Agency Force and Recruitment of Tied-Agent t goals. Meanwhile, Fubon also provides sales agents with a wealth of resources for career Fubon's projects that aim to accomplish Channel development, including tangible equipment and facilities as well as support services, certain mid- and long-term strategies. S t S u r s training courses, and performance bonuses that enable the regional sales offices to thrive, Number of recruitment Number of agency force a t

Fubon Life will continue to set up t a i n expand, and grow, making them ideal for engaging customers in their respective regions. additional sales offices in areas 21,834 24,358 23,652 e g y 18,823 a b Some of the accomplishments in 2018 related to this approach include: throughout Taiwan and to strengthen 15,234 16,681 i l i (1) Fubon continued to establish " Boundless Project" sales offices 16 new sales offices regional operation, especially central t y － and southern regions. In 2019, Fubon 7,993 8,779 were established in 2018, reaching a total of 133 sales offices across Taiwan, covering 68 5,241 5,644 6,574 7,224 Life plans to recruit 6,000 sales agents G villages, towns and districts, including 10 sales offices in areas with a lower population C o

in order to hire and cultivate talented o r density compared to other areas of Taiwan (such as Guanshan in Taitung 2013 2014 2015 2016 2017 2018 v p e r County, Ji'an Township in Hualien County, Yuanshan Township in Yilan County, individuals from different areas, create o n r a t e Township in , and Township, Township, more job opportunities, and promote training and development to establish an expanded high-quality a n

service network that provides the public with all-inclusive, convenient, and timely financial services. c Township and City in ). e Moreover, the program will enable Fubon to create a full-service value chain and generate balanced and equitable economic growth to help bridge the urban-rural divide, thereby realizing our vision of a

Number of Boundless Project Sales Offices I L n e a d

socially responsible company that fosters happiness and prosperity at all levels of society. v e s t i n m

Newly-set Sales Offices g 133 133 5.5 Promoting a More Equitable, Inclusive Society e n Total Sales Offices t 96 The World Health Organization defines a society as "aging" when 7% or more of its population is F i I n

65 or over, as "aged" when the ratio hits 14%, and as "super-aged when it hits 20%. In April 2018, n a n c e 49 o

the Ministry of the Interior announced that Taiwan had reached the threshold for an "aged society" a v 13 month earlier, when 14.1% of Taiwan’s population was 65 years old or above. A subsequent National a t i v 13 16 Development Council estimate said Taiwan will likely only need another eight years to exceed the e 36 48 40 20% threshold and join Japan, South Korea, Singapore and some European countries as a super- aged society. These trends show that Taiwan’s population is aging at an alarmingly rapid rate, and the 2014 2015 2016 2017 2018 Interior Ministry has said public policy in the future will focus on the country’s low birth rate and the mounting burden of the working-age population in caring for and supporting retirees. P r a c G o l d t e n At the same time, average life expectancy is on the rise in Taiwan, exposing more people to longevity i c Location Distribution of Boundless Project Sales Offices risk, health risks such as dementia and disabilities, and the risk of inflation. According to the 2016 e s National Health Insurance Statistics Summary put out by the Ministry of Health and Welfare, the 65 Low population density areas and over age bracket used more inpatient resources than any other age group in Taiwan, reflecting

Other areas the importance of preparing ahead of time for potential medical expenses later in life. With the rise L H e n o

in longevity risk, a growing single population, and the low birth rate, young adults should begin n d e s t 10 addressing longevity risk as early as possible by investing appropriately in health coverage while they i n g Note 1: Low population density areas: Refers to administrative regions are in good shape and earning an income. in which sales offices' locations have been established with a 123 population density of less than 300 people per square kilometer, One of the SDGs supported by Fubon Financial Holdings is Goal 3 – to ensure healthy lives and or a town or county with a population density of less than 300 promote well-being for all at all ages. To achieve that goal in Taiwan’s aging environment, the C T e n people per square kilometer, such as Hualien County, Taitung Company caters to demand from an aging population for long-term care, coverage for out-of-pocket a r d County, Yilan County, Nantou County, and Chiayi County. e

medical expenses often faced by older patients, and whole-life medical insurance. It has also taken e r Note 2: Population density was calculated based on census data and on the problem of people being rejected for private coverage because of pre-existing conditions by land area statistics of counties and cities from the Ministry of the Interior's Department of Household Registration at the end of creating targeted protection products that fill in the gap. Fubon’s impaired risk insurance for diabetes 2016. patients, for example, has a "spillover" clause that encourages the insured to keep their blood sugar levels under control in exchange for lower premiums. The product raises the customer’s health awareness while lowering the risk of claims. 69