Best’s Market Segment Report: Taiwan’s Non-Life Insurance Premiums Continue to Increase Amid Underwriting Improvements

Business Wire

HONG KONG--(BUSINESS WIRE)--
Taiwan’s domestic non-life insurance premium continued to increase in 2024, growing 10.5% to reach TWD 278.5 billion (USD 9.2 billion), according to a new AM Best report.

The Best’s Market Segment Report, “Taiwan Non-Life Segment’s Operating Performance Supported by Tighter Underwriting Guidelines,” also notes that this segment’s overall capital & surplus level has continued to improve and crossed the TWD 150 billion mark last year.

The driving force of Taiwan’s non-life segment remains motor insurance, particularly voluntary motor, which contributed close to half of the segment’s direct written premiums in 2024, despite the slightly slower overall premium growth last year, partly due to subdued growth in new car sales during 2024 and through the first quarter of 2025.

In order to bolster electric vehicle (EV) coverage, Taiwan’s insurance regulator implemented standardised EV motor policy terms in the second half of 2024. “However, the motor segment remains cautious over expanding in this product line while insurers continue to accumulate data and claims experience to aid pricing sophistication,” said James Chan, director, AM Best.

The combined gross written premiums of AM Best’s eight rated non-life insurers rose 10.6% to TWD 192.8 billion in 2024, similar to the market’s growth of 10.5% reported by all 14 domestic non-life insurers. All rated entities achieved premium gains in 2024, driven by expansions in voluntary motor, travel insurance and commercial lines.

According to the report, Taiwan’s non-life insurance segment achieved significant improvement in operating profitability for 2023 and 2024. Notably, following a year of historically poor performance in 2022, the market achieved a profit turnaround in 2023, due to the release of pandemic insurance-related reserves and the efforts of non-life insurers to bolster underwriting guidelines.

“Company strategies have included non-renewing unprofitable policies, increasing rates, raising policy deductibles, or applying higher co-insurance percentages,” Chan said. “These measures are aimed at passing on part of the rising reinsurance costs and potential future losses to policyholders. Insurers also have adopted a more proactive approach in offering risk advisory services and implementing loss prevention measures.”

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=354679.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.