The general insurance industry in Taiwan is projected to grow from TWD188.6bn (US$6.1bn) in 2019 to TWD232.7bn (US$8.3bn) in 2024, in terms of gross written premium (GWP), according to GlobalData, a leading data and analytics company.
GlobalData has revised Taiwan’s general insurance forecast in the aftermath of COVID-19 outbreak. As per the latest data, Taiwan’s general insurance market is forecasted to grow at a compound annual growth rate (CAGR) of 4.3% during 2019-2024, supported by the gradual economic recovery.
Pratyusha Mekala, Insurance Analyst at GlobalData, comments: “Stringent measures by the government to control the spread of the pandemic shielded the economy from major shocks in 2020. IndonesiaAccording to the National Statistics of Republic of China (Taiwan), the country’s GDP grew by 3.11% in 2020, outpacing China’s GDP growth rate of 2.3%, for the first time in 30 years. The improved economic scenario had a positive impact on the Taiwan’s general insurance industry.”
Motor insurance, which is the largest segment and accounts for more than 50% of the total general insurance premium, is estimated to grow by 4% in 2020 driven by growth in car sales, which also increased by 4% in 2020 to reach 457,435 units, the highest in 15 years. The restrictions imposed on international travel has prompted more consumers to take domestic trips, which helped drive vehicle sales and in-turn supported the demand for motor insurance. Additionally, government subsidies to encourage replacement of old vehicles has further contributed to the car sales growth in 2020.
Property insurance, which is the second-largest segment accounted for 19.1% share of the general insurance premium. Increased investments in infrastructure along with insurance demand for commercial accounts, supported the premium growth of fire and engineering lines. The property segment is expected to grow by 8.8% in 2020, due to the steady demand for these lines.
Personal accident and health insurance (PA&H), accounts for 11.8% of general premiums. Health insurance is expected to be one of the fastest growing lines supported by increasing consumer awareness due to the pandemic. Policies with COVID-19 hospitalization benefits are gaining prominence and insurers are offering policies waiving the standard waiting periods to drive sales.
Ms Mekala concludes: “Effective management of the COVID-19 outbreak is expected to limit the impact of pandemic on general insurance industry in Taiwan. Fiscal support by the government along with booming exports will help the growth of the country’s general insurance industry over the next couple of years.”
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