Taiwan’s general insurance industry is set to achieve a compound annual growth rate (CAGR) of 6.8%, with gross written premiums (GWP) rising from $9.0 billion in 2024 to $12.2 billion in 2028, according to GlobalData. The growth is supported by factors like rising motor sales, higher premium rates in motor and property insurance, and demographic changes such as an ageing population. The industry is forecast to grow by 9% in 2024. Sutirtha Dutta, an Insurance Analyst at GlobalData, said in a report that the industry grew by 9.8% in 2023, driven by economic growth that boosted exports and domestic consumption. The increase in vehicle sales and higher premium rates for motor and property insurance also contributed to this growth, and the trend is expected to continue in 2024.
Motor insurance, the largest segment, is expected to make up 50.2% of the total GWP in 2024, with a 7% year – on – year growth. The 11% growth in vehicle sales in 2023, reaching 476,987 units – the highest since 2005 – is a major driver. However, the rising number of traffic accidents is increasing claim volumes and costs. In 2023, Taiwan had 402,926 traffic accidents, a 7.2% year – on – year increase, leading to a 7.1% rise in gross motor insurance claims. As a result, motor insurance premium rates are expected to increase by 6% in 2024 as insurers reevaluate risk exposure. Over the forecast period, motor insurance is projected to grow at a 5.5% CAGR. Property insurance, the second – largest segment, is anticipated to account for 23% of GWP in 2024 and grow by 15.9%. Taiwan’s susceptibility to natural disasters like earthquakes and typhoons is driving this growth. For example, the Hualien Shoufeng Earthquake in 2024 caused NT$473 million in insured losses. Despite an earthquake insurance plan, only 38.6% of households are covered, presenting an opportunity for growth. Property insurance is expected to grow at a 2.8% CAGR from 2024 to 2028.
Personal Accident and Health (PA&H) insurance, which represents 10% of GWP in 2024, is forecast to grow by 7.4% in 2024, driven by increasing medical costs and an ageing population. The proportion of people over 65 is set to reach 18.8% in 2024. This segment is also expected to grow at a 7.4% CAGR until 2028. Liability, marine, aviation, transit (MAT), financial lines, and other general insurance lines are projected to account for the remaining 16.7% of GWP in 2024. Dutta said Taiwan’s goal of around 3% annual economic growth in the next four years will support the general insurance industry’s growth. Additionally, the government’s push for a net – zero emission path by 2050, along with continued investments in renewable energy and electrification and carbon – free transportation, will fuel the industry’s growth over the next five years.
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