Taiwan life insurers record $35b in H1 premiums

First-year premium (FYP) income rose 7.24% YoY to $11.62b.

In the first half of 2024 (H1 2024), Taiwan's life insurers recorded $35.16b (NT$1,134.2b) in premium income, marking a 2.3% year-on-year (YoY) increase, Taiwan Insurance Institute (TII) data showed.

First-year premium (FYP) income rose 7.24% YoY to $11.62b (NT$374.8b), with traditional products driving the growth, increasing by 18.28% YoY to $7.56b (NT$243.9b).

In contrast, FYP income from investment-linked products fell by 8.79% YoY to $4.06b (NT$130.8b).

Renewal premium income reached $23.55b (NT$759.4b), nearly unchanged from H1 2023, with a marginal increase of 0.04%.

Boosted by strong sales through stock market recommendations and bank channels, demand for participating policies and traditional life insurance rebounded significantly. 

The first half of 2024 saw the issuance of 24.93 million new policies with a total sum assured of $578.53b (NT$18.63 trillion), surpassing H1 2023 figures.

By the end of June, 245.85 million policies were in force, with a total sum assured of $3.696b (NT$119.21 trillion), reflecting steady growth in both metrics. 

Benefit payouts by life insurers totalled $41.16b (NT$1,327.9b), with life insurance and annuities accounting for 90.27% of the total.

Surrender benefits $27.49b (NT$886.6b), survivor benefits 4.8b (NT$154.7b), and medical disbursements 3.33b (NT$107.5b) constituted 86.51% of total benefits paid.

Investment activities contributed significantly to the sector’s performance. Net investment profit surged 36.63% YoY to $21.75b (NT$701.7b), driven by dividends, realized capital gains, and foreign exchange gains. 

Overall, the industry reported a net profit of $6.17b (NT$198.9b) for H1 2024.

As insurers prepare for the IFRS 17 accounting standard in 2026, the focus is shifting toward protection-oriented products instead of savings-oriented offerings.

Despite positive growth in H1 2024, challenges remain, including global economic uncertainties impacting investment confidence.

Maintaining the premium income momentum in the second half of 2024 will be critical for the industry, TII said.

($1.00 = NT$32.50)