(MENAFN Press) The Taiwanese insurance industry grew in terms of gross written premium value ate a compound annual growth rate (CAGR) of 3.84% during the review period (2007’2011).
The life insurance segment accounted for the largest share of 81.8% of the total Taiwanese insurance industry in 2011. The non-life insurance segment decreased in terms of gross written premium value, registering a CAGR of ·“0.84% during the review period.
This was mainly due to the implementation of a third-phase tariff deregulation for the automobile and fire categories in 2009, which resulted in pricing pressures and a significant decline in premium rates. The personal accident and health segment increased in terms of gross written premium value at a CAGR of 6.6% during the review period.
Bancassurance to support segment growth
The Taiwanese insurance industry is projected to grow in gross written premium terms at a CAGR of 5.7% over the forecast period (2012’2016).
The life insurance segment is expected to increase at a CAGR of 5.8% over the forecast period. Stable economic growth and the expansion of the bancassurance channel as a method of distribution will support the segment's growth.
The gross written premium of the individual life insurance category is expected increase at a CAGR of 4.6% over the forecast period. The non-life insurance segment is anticipated to grow at a CAGR of 2.3%.
Motor insurance to drive non-life segment
The motor insurance category is expected to account for the largest market share of 55% in the non-life segment. The property insurance category is projected to grow at a CAGR of 2.9% in 2016. The personal accident and health insurance segment is expected register a CAGR of 5.9%.
Increasing pressure on the National Health Insurance (NHI) scheme, which accounts for around 62% of the nation's total healthcare expenditure, a growing demand for drugs and rising healthcare costs, will propel the growth of the private health insurance category over the forecast period.
Highly concentrated industry
The Taiwanese insurance industry is highly concentrated with the 10-leading companies accounting for a collective market share of 97.6% of the overall gross written premiums in 2011. Nan Shan Life Insurance Company is the leading insurance company in Taiwan and comprised 26% of the total gross written premium value in 2011.
As of 2011, there were 54 insurance companies in Taiwan, comprising 31 life insurance companies and 23 non-life insurance companies. Of the 54, 14 were foreign firms, including eight in life insurance and six non-life insurance companies.
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