Domestic and Foreign Non-Life Insurers See Mixed Revenues

Taipei, Oct.30, 2012 (CENS)--Taiwan's domestic and foreign non-life insurers reported mixed premium revenues, with foreign insurers reporting NT$1.8 billion (US$60 million) in the first eight months. Domestic non-life insurers' revenues are currently 44 times that of foreign insurers, up from last year's 41 times, said Taiwan Insurance Institute (TII).

An insider says auto-insurance policies generally contribute more than 50% of total domestic non-life insurance premium revenues, which depends on massive service personnel and extensive footholds to prevent significant intrusion by foreign non-life insurers.

Therefore, most foreign non-life insurers tap fire and construction insurance segments in Taiwan, which unfortunately result in enormous loss due to claims subsequent to frequent disasters in Taiwan.

As for domestic non-life insurance, an insider says, despite domestic premium revenues having been growing in recently years, the domestic market is now nearly mature and saturated, so domestic insurers have to consider tapping the market in China, where approximately US$11.98 billion in business exists due to compulsory car insurance.

Cathay Century Insurance saw written insurance premiums increase 11.96% year on year (YoY) to NT$10.2 billion (US$340 million) in the first eight months, reaching 12.4% market share and NT$460 million (US$15.33 million) in net profits, according to statistics from TII. Fubon scored NT$18.4 billion (US$613.33 million) in premium revenues during the said period, up 11.84% YoY, with 22.4% market share and NT$2.28 billion (US$76 million) in net profits.