Taiwan life insurance industry to hit $135bn by 2026

Written by Michael Griffiths

13/10/2022

The Taiwanese life insurance industry will grow at a compound annual growth rate (CAGR) of 3.3%, according to calculations from GlobalData.

This would take the industry from TWD2.9trn in 2021 to TWD3.5trn in 2026, equivalent to growth from $106bn to $135bn, in terms of direct written premiums (DWP), supported by foreign currency-denominated insurance.

GlobalData’s Global Insurance Database revealed that while Taiwan’s overall life insurance new business DWP declined by 4.4% in 2021, foreign currency-denominated insurance grew by 22%, accounting for a 68.5% share of the life insurance new business.

The analytics firm stated that in increase in interest rates by foreign monetary authorities, including the US Federal Reserve, is also expected to support the uptake of these insurance products in the coming years.

Senior insurance analyst at GlobalData, Deblina Mitra, commented: “The outlook for the Taiwanese life insurance industry looks optimistic over the next few years due to the implementation of favourable regulatory measures by the Financial Supervisory Commission (FSC).

“The most prominent among them is the proposal to establish internet-only insurance companies in 2021. The FSC is inviting applications to set up such companies until 31 October 2022, and post-approval they are expected to start operating by early 2023.”

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