Taiwanese insurance industry has been growing mainly on account of liberalization policies introduced by the government in 1986, increased consumer awareness as well as the growing economy. Taiwan ranked third in terms of insurance density in Asia Pacific region in 2009. At the end of 2009, there were 54 insurance companies in Taiwan, of which 31 were engaged in life insurance business and 23 in non-life insurance sector.
Life insurance sector witnessed an increase in premiums in 2009 due to rise in demand for annuity insurances and retirement related policies because of the increasingly aging population in Taiwan. Following the implementation of third phase of price deregulation in April 2009, the non-life insurance companies’ premium income has been gradually declining because of fierce price competition, especially for fire and voluntary automobile insurance.
The Taiwanese insurance market is highly fragmented with a number of market players. Fubon is the market leader in both life and non-life insurance sectors in 2009. Other leading insurers include Ming Tai, South China, Cathay Century, Taian and Chung Kuo. Long-term care insurance is still at the preliminary stage of development and there is room for growth. Innovative products such as accident insurance, micro-insurance and foreign currency-dominated life policies have become popular in Taiwan. It is expected that the premium income from such products will increase and will drive the insurance market in future.