Data and analytics firm GlobalData is expecting Taiwan’s general insurance industry to grow from $6.1 billion in 2019 to $8.3 billion in 2024, in terms of gross written premium.
GlobalData has revised Taiwan’s general insurance forecast following the COVID-19 outbreak and is expected to grow at a compound annual growth rate of 4.3% during 2019-2024, supported by the gradual economic recovery.
Motor insurance is estimated to grow by 4% in 2020 driven by growth in car sales, which also increased by 4% in 2020 to reach 457,435 units, the highest in 15 years.
Additionally, government subsidies encouraging the replacement of old vehicles is seen as further contributing to the car sales growth in 2020.
Pratyusha Mekala, Insurance Analyst at GlobalData, said, “Stringent measures by the government to control the spread of the pandemic shielded the economy from major shocks in 2020.
“According to the National Statistics of Republic of China (Taiwan), the country’s GDP grew by 3.11% in 2020, outpacing China’s GDP growth rate of 2.3%, for the first time in 30 years. The improved economic scenario had a positive impact on the Taiwan’s general insurance industry.”
Property insurance is the second-largest segment and accounted for 19.1% share of the general insurance premium.
GlobalData says increased investments in infrastructure along with insurance demand for commercial accounts, supported the premium growth of fire and engineering lines.
The property segment is expected to grow by 8.8% in 2020, due to the steady demand for these lines.
Meanwhile, personal accidents and health insurance accounts for 11.8% of general premiums and is expected to be one of the fastest growing lines supported by increasing consumer awareness due to the pandemic.
“Effective management of the COVID-19 outbreak is expected to limit the impact of pandemic on general insurance industry in Taiwan,” said Mekala.
Fiscal support by the government along with booming exports will help the growth of the country’s general insurance industry over the next couple of years.”