Taiwan’s non-life insurers collected NT$319 million (approximately US$9.8 million) in cyber insurance premiums in the first half of 2026, with the full year on track for another record high, according to the Financial Supervisory Commission (FSC).
Semiconductor companies led demand, accounting for approximately NT$156 million (US$4.8 million), or 48.71% of the total. The financial and insurance sector ranked second at approximately NT$39.78 million (US$1.2 million), followed by computer and peripheral equipment makers at approximately NT$25.83 million (US$790,000).
Tsai Huo-yen, deputy director-general of the FSC’s Insurance Bureau, said on Thursday that companies should assess buying cyber insurance at the appropriate time, treating it as a complement to stronger risk management and operational resilience rather than a substitute for it.
Microsoft’s 2026 Digital Defense Report ranks Taiwan fourth globally and first in the Asia-Pacific region for exposure to cyber threats, according to Inside.
Tsai said insurers assess applicants through interviews, weighing the client’s industry risk profile, level of cybersecurity controls and past loss records. He specifically advised companies to provide third-party audit reports, business continuity plans and crisis notification mechanisms when applying - these are the practical steps that secure more favourable underwriting terms. Companies with stronger documented defences can expect lower premium rates; large multinationals can often negotiate tailored cover with risk spread through reinsurance.
For brokers helping clients enter the Taiwan cyber market, that checklist is the most actionable takeaway: audit reports, BCP documentation and a clear notification mechanism are the three items that move an application from standard terms to competitive ones.
Taiwan’s market offers three distinct products. Data protection liability insurance, the largest segment, covers legal liability to third parties from personal data breaches. Sixteen non-life insurers offer it, and it brought in approximately NT$273 million (US$8.4 million), more than 85% of total premiums. Comprehensive information security insurance, offered by eight insurers, covers property
losses from cyberattacks, ransomware or management errors as well as third-party liability - this is the appropriate product for clients seeking business interruption, cyber extortion and third-party liability cover. Computer system fraud insurance, offered by seven insurers, covers losses of funds or property when third parties illegally enter computer systems.
Claims across the three categories totalled approximately NT$250,000 (US$7,700) in the first half.
Tsai attributed the very low figure to low frequency of cybersecurity events, saying it shows Taiwanese companies’ defences meet a certain standard. An alternative reading is that policy penetration remains low outside the semiconductor sector, and that smaller companies - which Tsai specifically named as the next target audience, including information services, trading, department stores, education and cultural sectors - have not yet filed claims simply because most of them are not yet insured. The claims picture is likely to change as the FSC’s push to broaden uptake takes effect.
Premium income has grown substantially from NT$89.08 million in 2018 to NT$528 million in 2023. It was broadly flat at NT$526 million in 2024 and NT$512 million in 2025 before the current year’s acceleration. The 2025 dip reflected stronger growth in other lines rather than weakening cyber demand, according to an FSC official quoted by Liberty Times. First-half 2026 premiums of NT$319 million already compare favourably with the NT$229 million recorded in the first half of 2025.
