How can Taiwan's insurers sustain growth as the market matures?
Property and casualty premiums are forecast to grow 4.8% annually through 2036.
Taiwan's insurance sector is expected to expand steadily over the next decade, but insurers may need to rely more on property and casualty and health products as growth in the bigger life insurance segment slows.
“Consistent premium expansion across retail and commercial lines is expected to support segment earnings, underpinned by disciplined underwriting and rational competition,” A.M. Best Company, Inc. said in a September report.
Commercial insurance demand continues to grow, supported by investment in high-technology manufacturing plants, renewable energy projects, and infrastructure projects, it said
Motor insurance remains the biggest source of nonlife premium income. Growth has slowed, however, as uncertainty over possible tariff reductions prompted some consumers to delay vehicle purchases, AM Best said.
A relatively benign catastrophe environment through 2025 and the first half of 2026 also supported nonlife insurance earnings, the rating agency said.
Taiwan's insurers are also adapting to revised capital and reporting rules under Taiwan Insurance Solvency and International Financial Reporting Standard 17 (IFRS 17).
AM Best said Taiwan Insurance Solvency had a limited effect on overall industry capitalisation, although market risk now accounts for a bigger share of insurers' solvency capital requirements.
The shift to IFRS 17 improved reported capital levels. Industry-wide shareholders' equity at the end of 2025 was about 10% higher than under the previous standard, AM Best said.
Allianz Research expects Taiwan's property and casualty premiums to grow by an average of 4.8% a year from 2026 to 2036. Health insurance premiums are also forecast to increase 4.8% annually.
Life insurance premiums, which account for the biggest share of the market, are expected to grow at a slower 4.3% annual rate, it said in a May report.
By 2036, Taiwan's property and casualty premiums are projected to reach $19b from $11.4b in 2025. Health insurance premiums are expected to rise to $25.1b from $15.1b, whilst life insurance premiums are forecast to increase to $103.5b from $65.1b.
Questions to ponder:
- Can insurers generate faster growth outside the mature life insurance segment?
- Will demand from renewable energy, infrastructure, and technology projects continue to support commercial insurance growth?
- How can Taiwan's insurers defend underwriting margins as competition intensifies?
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EXPERT OPINION
As Taiwan’s non-life insurance market matures, insurers will need to pursue growth through deeper customer penetration and more differentiated risk solutions.
In retail lines, non-life insurers could seek more differentiation in a market where products remain relatively homogeneous, including greater flexibility in coverage design and customer segmentation, while a more seamless digital customer journey—from quotation and policy issuance to claims—could improve retention and engagement. Insurers can also increase penetration through cross-selling across motor, personal accident and health, travel, home and other personal lines.
In commercial lines, growth could increasingly come from moving beyond traditional risk transfer toward more holistic solutions combining risk assessment, loss prevention, and insurance coverage. Insurers could also expand further into the SME segment by offering simpler and more modular products covering property, liability, and other group-related risks, helping diversify portfolios beyond large corporate accounts.