Leading data and analytics firm, GlobalData, has projected that Taiwan’s general insurance value, in terms of gross written premium, would grow from $6.1 billion in 2019 to $8.3 billion in 2024.
The latest projection by the firm was based on its revision of the country’s general insurance forecast following the COVID-19 outbreak.
Specifically, GlobalData’s research findings showed that Taiwan’s risk underwriting industry is expected to record an annual growth rate of 4.3% during 2019-2024, buoyed by the nation’s gradual economic recovery trend.
It estimated that that motor insurance would grow by 4% in 2020,driven by growth in car sales which reached 457,435 units last year, the highest in 15 years. The research firm also foresees government subsidies which are encouraging the replacement of old vehicles as a further contributor to the car sales growth in 2020.
Commenting on the industry trend, Insurance Analyst at GlobalData, Pratyusha Mekala, 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.”
The motor industry’s growth is expected to be followed by property insurance segment, accounting for 19.1% share of the general insurance premium.
According to GlobalData, 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.
Also, the 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.
Mekala said: “Effective management of the COVID-19 outbreak is expected to limit the impact of pandemic on general insurance industry in Taiwan.
“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”, the industry expert added.