Taiwan's insurance sector recorded a total pre-tax profit of $10.89b (TWD351.3b) in November 2024. Life insurance companies' contribution was $10.71b (TWD326.3b) in November 2024 according to the data from the Insurance Bureau.
This marked an increase of 188.8% year-on-year (YoY). Non-life insurance enterprises also saw a significant rise, with pre-tax profits reaching $0.78b (TWD25b), up by 55.3% YoY.
The first-year premium income of the life insurance market in Taiwan will rise by between 5% and 10% in 2025, according to a 2025 insurance market forecast released in December 2024 by the Taiwan Insurance Institute (TII).
The growth is expected to be fuelled by interest rate cuts in the US. In such an environment, participating life insurance plans are expected to continue to sell well while demand for variable life insurance is expected to rise and restrictions on investment-type products are lifted according to a report by the Central News Agency quoting the TII.
In the P&C insurance market, the estimated premium growth rate is predicted to be between 5% and 10%.
The TII also released the findings of an industry survey showing that 91% of senior life insurance executives polled expect that the total premium income of the life insurance industry will show positive growth in 2025. Around 60% of the executives believe that the growth rate will reach up to 5%. As for the profit outlook, 57% believe that there will be no big change compared with 2024 profit figures.
In the non-life insurance sector, the executives polled name catastrophe risks, reinsurance capacity, and digital technology as the main factors that will affect market growth. More than 90% of the P&C insurance executives polled expect the premium income of the non-life sector to show positive growth. 75% believe that the growth rate will be between 5% and 10%.