Taiwan’s Financial Supervisory Commission (FSC) has released Q4 2024 data on the sales of spillover-effect insurance and in-kind payment insurance products by life insurers.
Fifteen life insurers received regulatory approval or completed registration for 245 spillover-effect insurance products as of Q4 2024.
According to the FSC, insurers sold 1,195,985 new policies under this category, reflecting a 6% rise compared to the 1,129,046 policies issued in Q4 2023. First-year premium revenue reached NT$27.75 billion, up 34% from NT$20.75 billion recorded in the same quarter the previous year.
The FSC also reported that seven life insurers were authorised to offer 48 in-kind payment insurance products. Sales for these products declined by 7%, totalling 261,115 new contracts in Q4 2024, compared to 281,200 in the same period of 2023.
First-year premium income for in-kind payment products saw a 52% reduction, decreasing from NT$3.58 billion in Q4 2023 to NT$1.74 billion in Q4 2024.
The FSC also provided an update on the sale of foreign-currency denominated insurance products as of November 2024.
Total premium income from newly issued foreign-currency denominated policies stood at NT$280.46 billion, reflecting a 15% increase compared to NT$244.94 billion in the same period the previous year.
Traditional foreign-currency denominated insurance products contributed NT$237.95 billion, accounting for approximately 85% of sales in this segment, a 29% increase from NT$184.68 billion in 2023.
Investment-linked foreign-currency denominated policies generated NT$42.51 billion in premiums, making up 15% of the total. This figure represents a 29% decline from the NT$60.26 billion recorded in the previous year.
In a separate development, Taiwan’s Ministry of Labor (MOL) has confirmed an increase in labour insurance premiums, raising the rate from 12% to 12.5%, effective January 2025. The adjustment will impact approximately 10.51 million workers.
The labour insurance premium structure follows a scheduled adjustment plan outlined in the Labor Insurance Act.
Since the introduction of the labour pension program in 2009, rates have increased incrementally. Initially set at 7.5%, the rate increased to 8% within the first three years, followed by annual 0.5 percentage point increases until reaching 10%. After that, biennial increases were scheduled, with a maximum cap of 13%. The most recent increase took place in 2023, when the rate rose from 11.5% to 12%.
Employers, employees, and the government contribute to labour insurance premiums in a 7:2:1 ratio. Under the new rate, a worker earning NT$28,590 per month will see an employer contribution of NT$2,502, while the employee and government will contribute NT$715 and NT$358, respectively.
The MOL estimates that this increase will generate NT$20 billion annually to support the labour insurance fund.
