The general insurance industry in Taiwan is projected to grow at a compound annual growth rate (CAGR) of 6.8%, reaching TW$364.2 billion ($12.2 billion) in gross written premiums (GWP) by 2028, according to a forecast by data and analytics firm GlobalData.
This represents an increase from TW$279.8 billion ($9.0 billion) in 2024.
GlobalData’s analysis indicated that the market would expand by 9% in 2024, fuelled by factors such as rising vehicle sales, increased premium rates in motor and property insurance, and demographic shifts like the aging population.
Sutirtha Dutta, an insurance analyst at GlobalData, explained that Taiwan’s general insurance sector grew 9.8% in 2023, with economic growth contributing to higher exports and domestic spending. This growth was also supported by increased vehicle sales and higher premiums in motor and property lines, trends likely to continue in 2024.
Motor insurance is expected to remain the dominant segment in Taiwan’s general insurance market, accounting for 50.2% of GWP in 2024.
With new vehicle sales growing by 11% in 2023, according to the Ministry of Transportation and Communications, motor insurance premiums are projected to increase by 7% in 2024.
A rise in traffic accidents has also contributed to growing claims in the motor insurance sector. In 2023, Taiwan recorded 402,926 traffic accidents, a 7.2% increase from the previous year. As a result, motor insurance claims reached TW$17.4 billion in the first quarter of 2024, up 7.1% from 2022, according to data from the Taiwan Insurance Institute (TII).
In response, motor insurers are expected to raise premium rates by 6% in 2024 to offset higher claims costs. The motor insurance segment is forecast to grow at a CAGR of 5.5% through 2028.
Property insurance, the second-largest segment, is projected to hold a 23% share of Taiwan’s general insurance GWP in 2024, with anticipated growth of 15.9%.
Taiwan’s vulnerability to natural disasters, including earthquakes, typhoons, and floods, continues to drive demand for property coverage. For instance, the Hualien Shoufeng Earthquake in 2024 resulted in TW$473 million in insured losses, which has contributed to rising premium rates for both fire insurance and reinsurance in commercial property coverage.
Dutta noted that while Taiwan’s earthquake insurance program currently covers 38.6% of households as of July 2024, there is still potential for expansion as a large portion of homes remains uninsured. This presents an opportunity for further growth in the property insurance market.
Property insurance is expected to grow at a CAGR of 2.8% over the next four years.
Personal accident and health (PA&H) insurance is the third-largest segment and is forecast to represent 10% of general insurance GWP in 2024. It is projected to grow by 7.4%, driven by rising medical costs and an aging population.
By 2024, 18.8% of Taiwan’s population will be over the age of 65, fuelling demand for health-related insurance products. PA&H insurance is expected to grow at a CAGR of 7.4% between 2024 and 2028.
Other general insurance categories, including liability, marine, aviation, and transit (MAT), and financial lines, are expected to account for the remaining 16.7% of GWP in 2024.
Dutta concluded that Taiwan’s targeted economic growth of 3% annually, along with its efforts to invest in renewable energy and carbon-neutral technologies, will likely support the general insurance sector’s growth over the next five years.
