Taiwan non-life premiums rise on tighter underwriting discipline

Motor insurance remained the largest segment.

Taiwan’s domestic non-life insurance market posted 10.5% growth in gross written premiums (GWP) in 2024, supported by tighter underwriting guidelines, according to AM Best.

“Notably, following a year of historically poor performance in 2022, the market achieved  a profit turnaround in 2023, due in part to the release of pandemic insurance-related reserves, as  well as the efforts of non-life insurers to bolster their underwriting guidelines,” AM Best’s “Taiwan Non-Life Segment’s Operating  Performance Supported by Tighter  Underwriting Guidelines” report stated.

“Insurers also have adopted a more  proactive approach in offering risk advisory services and implementing loss prevention measures, with  the goal of reducing the frequency and severity of claims,” it added.

All rated non-life insurers recorded GWP growth, led by CTBC Insurance and Nan Shan General. Rated entities contributed $6.555b (NT$192.8b), or 70% of market premiums.

Motor insurance remained the largest segment, accounting for 49.8% of direct written premiums, with voluntary motor comprising 85% of the motor portfolio. 

Growth slowed to 7.7% from 8.2% in 2023 due to weaker new car sales.

Fire insurance was the second-largest line at 17%, whilst engineering insurance saw the strongest growth at 50.4%, supported by infrastructure and green projects. 

Liability and accident lines also expanded due to regulatory changes and post-pandemic travel recovery.

Sector profitability improved, with profit before tax up 46.2% to $0.796b (NT$23.4b). 

Rated insurers saw a 70.1% jump in pre-tax income to $0.544b (NT$16b), driven by better underwriting and reserve releases. Fubon Insurance reported the highest earnings at $0.218b (NT$6.4b).

Capital and surplus rose 16.2% to $5.175b (NT$152.2b), recovering from pandemic-related losses but still below the 2021 peak. Over half of the insurers have now surpassed their 2021 capital levels.