The Taiwan Insurance Institute (TII) has released its projections for the life insurance market in 2025. It anticipates a significant boost in first-year premium income, with an estimated increase ranging from 5% to 10%. Central News Agency reports that this growth is expected to be driven by anticipated US interest rate cuts. Such cuts are likely to have a positive impact on the sales of participating life insurance plans. Additionally, with the lifting of restrictions on investment-type products, the demand for variable life insurance is also set to rise.
The TII further estimates a renewal premium growth rate of around 5% for 2025. These projections paint a picture of a market on the move. Under favourable conditions, the total premium income could see a 7% increase. However, a more conservative scenario also exists, where it might potentially decline by 2%. TII Chairman Dr. Huang Hong-Chih pointed out that the industry has already witnessed a healthy growth in the first three quarters of 2024, with first-year premium income increasing by over 13%. This indicates a positive momentum that could potentially carry over into 2025, barring any unforeseen disruptions.
As the market braces for the upcoming year, insurers will likely be strategizing to capitalize on the expected trends. The anticipated interest rate cuts and product deregulation present both opportunities and challenges. They will need to balance product offerings, manage risks, and ensure customer satisfaction to make the most of the projected growth and navigate any potential downturns. The TII’s forecasts will serve as a crucial guide for insurers, investors, and other stakeholders in making informed decisions in the dynamic Taiwanese life insurance market.
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