Looking ahead to 2025, the General Accounting Office and the Central Bank expect that the economy is expected to maintain moderate growth, which should continue to provide a favourable operating environment for the insurance industry, says KPMG in its newly released "2024 Taiwan Insurance Industry Report".
“If the policy sales momentum of insurance companies remains stable, the possibility of premium income continuing the growth trend in the first three quarters of 2024 should not be low,” says Ms Li Fenghui, financial services industry lead accountant of KPMG in Taiwan.
2025 is the eve of the insurance industry’s integration with the international system, and all players must be ready for it, she said. In 2026, the insurance industry is set to implement the Taiwanese equivalent of IFRS 17 and the new generation solvency system, TW-ICS.
After entering 2024, the economy and the investment market in Taiwan generally developed in a positive direction, and the environment is favourable to the insurance industry. Statistics from the Financial Supervisory Commission show that the pre-tax profit of the insurance industry in the first eight months of this year reached NT$300bn ($9.2bn), exceeding that for the 2023 full year. At the same time, premium income has shown a moderate rebound. However, the industry may face some short-term pain because of its transition to the new financial reporting and solvency standards.
Other topics covered in the report include:
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The continued loosening of regulations will help the insurance industry increase its powers of innovation
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The application of artificial intelligence in the insurance industry is becoming more widespread, and the related benefits and risks should be viewed with caution
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The insurance industry is gradually actively developing green insurance amid the net-zero trend
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The government is committed to promoting the integration of international and domestic systems and stably strengthening the solvency of the insurance industry
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Insurers and the government work together to actively prevent fraud and help protect policyholders’ property
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The insurance industry will face opportunities and challenges in a super-aged society.