Taiwan life recovery slows as reforms bite

CreditSights said tighter rules weakened demand for savings-type policies.

Taiwan’s life insurance market is showing signs of a slow recovery following a 38% drop in total premium income from its peak in 2018.

The sector contracted significantly between 2019 and 2023. Tighter regulations and financial market volatility during the pandemic reduced the appeal of savings-type policies, which local households have historically used as alternatives to bank deposits, according to a CreditSights research note.

Because these regulatory changes are structural, the market's recovery remains slow despite an improving trend that began in 2024.

Taiwan remains one of the most heavily insured markets globally, supported by high household savings and an ageing population.

The domestic market is currently dominated by local companies. 

Foreign insurers previously found the sector too capital-intensive to compete, as local firms benefited from more lenient legacy accounting and capital frameworks. 

However, the upcoming adoption of international accounting standard IFRS 17 and the local Taiwan Insurance Capital Standard (TW-ICS) is expected to improve long-term comparability and could renew foreign interest.

The industry's product mix has improved since regulatory reforms were introduced in 2020. Standard life policies fell to 68% of total premium income in 2025, down from nearly 80% in previous years. 

Meanwhile, the share of health and accident products rose to approximately 21%. This shift towards higher-margin, less interest-rate-sensitive protection policies is expected to continue under the new IFRS 17 and TW-ICS guidelines.

Investment data shows that overseas assets still account for roughly 68% of all sector investments.