The industry could hit $128.5b in direct premiums by 2024.
Life insurance direct premiums in Taiwan could reach $128.5b (TW$3.6t) in 2024 from $107b (TW$3t) in 2019, according to a GlobalData report, boosted by an early economic recovery in Q3 2020 and an ageing population.
The industry is forecasted to grow at a CAGR of 3.6% during 2019–2024 against pre-COVID estimates of 5.2%, due to the economic uncertainty triggered by the pandemic.
The country was able to avoid lockdown restrictions due to the low number of COVID-19 cases and fatalities, which helped insurers in keeping their losses under control. Additionally, an increased general awareness following the pandemic is expected to boost sales of new policies.
Taking advantage of this, life insurers are adding new products to jumpstart sales, engaging with clients to promote healthy lifestyles and offering benefits such as premium discounts on reaching certain health targets. In addition, they are adopting new technologies such as blockchain and artificial intelligence across the value chain for better customer service, claims processing, and distribution.
In early 2020, 11 insurers announced a collaborative trial to test blockchain’s ability to simplify policy changes. In 2019, Taiwan Financial Supervisory Commission approved three Internet-only banks, namely Line Bank, Next Bank and Rakuten Bank, to sell online insurance products offered by insurance companies.
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