Aggregate premiums collected by Taiwan’s insurers are set to reach a record high for 2016, as investors stay conservative amidst slowing global economic growth and increasing uncertainty, according to the Taiwan Insurance Institute (TII).
According to TII vice president John Kuo, in the first 10 months of the year, total premiums collected reached NTD2.54 trillion (US$79.6 billion), a 6.2% increase year-on-year. It is expected they will breach the NTD3 trillion mark by the end of the year.
“Premium expansion is expected to slow for life insurers next year as the local market matures and becomes more saturated,” Kuo told the Taipei Times
. He said that premium growth is expected to grow by up to 5% next year for the entire industry, while general insurers can expect 3% to 6% growth. The high base set this year is likely to dampen next year’s growth prospects, he added.
While premiums are at a record high, earnings have taken a hit. Life insurers’ earnings decreased by 19.2% year-on-year, from NTD112.6 billion (US$3.54 billion) to NTD91 billion (US$2.86 billion). Meanwhile, general insurance earnings dipped by 7.34%. Kuo reported that profitability remains stable and there is no reason for grave concern.
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