Taiwan’s Financial Supervisory Commission (FSC) has disclosed financial data for the country’s insurance sector as of October 2024, showing notable increases in both pre-tax profits and owners’ equity across life and non-life insurance businesses.
As of the end of October, Taiwan’s insurance sector reported a total pre-tax profit of NT$329.8 billion.
Life insurers contributed NT$306.3 billion, reflecting a 70.7% rise from the same period in 2023, or an increase of NT$126.9 billion.
Taiwan’s FSC reported currency-related impacts on life insurers. The Taiwan Dollar’s 4.05% depreciation against the US Dollar by October 2024 contributed to an increase in foreign exchange valuation reserves, which grew by NT$63.2 billion to reach NT$155.2 billion.
However, life insurers faced combined foreign exchange and hedging losses of NT$259.3 billion.
Net gains from overseas investments, excluding foreign exchange valuation reserve volatility, amounted to NT$685.8 billion.
Non-life insurers saw pre-tax profits grow to NT$23.5 billion, a 63.2% year-on-year jump, equating to a NT$9.1 billion increase.
Owners’ equity across the insurance industry reached NT$2,728.7 billion, with life insurers accounting for NT$2,579.6 billion, up 40.2% compared to 2023. Non-life insurers posted NT$149.1 billion in owners’ equity, an annual increase of 22.3%.
Taiwan’s general insurance market is expected to expand at a compound annual growth rate (CAGR) of 6.8%, reaching NT$364.2 billion in gross written premiums (GWP) by 2028, according to an analysis by GlobalData. This is an increase from NT$279.8 billion in 2024.
The general insurance market is forecast to grow 9% in 2024, driven by increased demand for motor and property insurance, higher premium rates, and demographic factors such as an aging population.
Motor insurance is projected to remain the dominant category, accounting for 50.2% of general insurance premiums in 2024.
Premium growth of 7% is expected, fuelled by an 11% increase in vehicle sales during 2023 and a rise in traffic accidents.
The motor segment is forecast to achieve a 5.5% CAGR through 2028.
Property insurance is anticipated to account for 23% of general insurance premiums in 2024, with projected growth of 15.9%. Taiwan’s vulnerability to natural disasters, including earthquakes, typhoons, and floods, continues to drive demand in this category.
With earthquake insurance covering only 38.6% of households as of mid-2024, the market has room for growth.
Property insurance is expected to grow at a 2.8% CAGR through 2028.
Personal accident and health (PA&H) insurance is forecast to contribute 10% of general insurance premiums in 2024.
Rising healthcare costs and the aging population, which is projected to include 18.8% of Taiwanese residents aged 65 or older by 2024, are key factors driving demand.
The PA&H segment is projected to grow at a 7.4% CAGR from 2024 to 2028.
Other general insurance lines, including liability, marine, aviation, and transit (MAT), and financial insurance, are expected to account for 16.7% of general insurance premiums in 2024.
