, Taiwan

Taiwan insurers cough up over $1b in COVID-19 claims

Some insurers took to selling properties to increase cash reserves.

The top 12 insurers in Taiwan had to pay over $1b in COVID-19 claims in 2022, with some insurers selling properties and applying for short-term loans just to increase their cash reserves, a report by the Central News Agency revealed.

Consumers’ Foundation Secretary-General Hsu Tse-yu said that low premiums of a few hundred dollars led to sales of millions of COVID-19-related policies. However, a surge in cases that began in April has exposed that insurance companies had made poor risk assessments for the sustainability of the policies.

ALSO READ: Seven Taiwan insurers fails to collect $100m interest on Russian bond

In its monthly statistics, the Financial Supervisory Commission revealed that Taiwan’s general insurance industry reported a year-on-year (YoY) pre-tax profit loss of a whopping 484.4% to $1.57 YoY in June. This has been the third month that the industry suffered YoY loss.

Meanwhile, some insurers like Cathay Century Insurance Co and  CTBC Insurance Co have started to inject more capital to avoid going in the red.
 

Follow the links for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!