The Taiwanese nonlife insurance sector saw premiums increase by 8.92% to NT$80.9 billion (US$2.7 billion) in the first half of this year, according to the Non-Life Insurance Association of the Republic of China (NLIA).
The association said that the growth was driven by fire insurance and disaster insurance. It attributed the growth in fire insurance to regulatory changes last year that addressed inadequate pricing for mega risk. Since the revised rules came into effect, the market has returned to more stable rates and more rational competition.
The data show that motor which is the biggest class of business, accounting for 52.87% of total premiums, grew by 8.42% to NT$42.8 billion in the first half. Aviation insurance premiums plunged by more than half in the first six months of this year to less than NT$200 million compared to the corresponding period last year largely because of the cessation of operations of TransAsia Airways last November.
As for the outlook for the second half of this year, the NLIA expects the market to grow. It said that premiums for fire and disaster insurance have stabilised in the wake of regulatory actions and self discipline in the industry, and now adequately reflect the related risks. As for health insurance, some insurers are raising premiums for cancer insurance and hospitalisation cover. In addition, the insurance industry is working with the Council of Agriculture, a government body, to establish a farm and aquaculture insurance system. At the same time, tinsurers are encouraged to cooperate with the Council to develop natural disaster insurance related products for agricultural facilities.