Taiwan life insurers face rising health insurance losses, report warns

Although, interest surplus remains the primary driver of profitability.

Taiwan’s life insurance industry is expected to remain volatile in 2025 due to shifting components of operating surpluses, according to a report by Taiwan Ratings Corp. (TRC), a subsidiary of S&P Global Ratings.

Interest surplus remains the primary driver of profitability, followed by mortality and loading surpluses. 

However, rising losses on health insurance products are reducing the mortality surplus buffer, increasing earnings volatility.

The report highlights that medical insurance loss experience is deteriorating faster than other health insurance products. 

Insurers could mitigate these challenges by introducing new policies with built-in risk management tools, such as claim payment limits, non-guaranteed renewals, and adjustable premium rates. 

These measures may help slow the decline in mortality surplus and stabilise earnings.