News Regulations28 Mar 2018

Taiwan:Regulator wary of risk in insurers' massive investments overseas

| 28 Mar 2018

The Financial Suoervisory Commission (FSC) is concerned about the proportion of overseas investments of insurance companies and is considering whether or not to limit them, according to Mr Cheng-Mount Cheng, FSC Vice Chairman.

The total assets of the Taiwanese life insurance industry stood at NT$24.46 trillion (US$843 billion), of which the total amount of funds used was NT$22.18 trillion, of which NT$14.4 trillion or 65% was invested in overseas markets, according to data from the Taiwan Insurance Institute.

The total assets of the property insurance industry last year amounted to NT$348.8 billion, of which total funds used were NT$254.1 billion, of which NT$59.5 billion or 23% were invested overseas.

Mr Cheng, speaking at a financial seminar, said that insurance companies are under great pressure. With insurance premiums collected, insurance companies need to properly manage the use of the funds of policyholders, according to a report in ET Today.

Mr Cheng said that in recent years, the authorities have gradually opened up the investment arena for the insurance industry, including allowing investments in REITS, private equity funds and the 5+2 industrial innovation plan to transform industry in Taiwan. He said that the FSC will continue to expand the domestic capital market and encourage insurance companies to keep their funds at home.

Taiwan Insurance Institute Chairman Hsien-Nung Kuei expressed concern that uncertainty in interest rates has increased and the entire insurance industry is challenged by exchange rate and international event risks, trade protectionism and international currency movements.

Last year, the insurance industry’s total premium income reached NT$3.57 trillion, representing an annual growth rate of 9.1%, hitting a record high.


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NT$24.46 trillion is roughly US$840 billion

30 March 2018

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