Taiwan's financial regulator has urged people in the island to examine whether the insurance products they purchase meet their actual needs, as Taiwan appears to have the highest insurance penetration rate in the world with each person paying an average $4,998 on premiums per year.
As of July 2018, the insurance sector in Taiwan has exceeded NT$26trn ($847m) in asset size, reports Taiwan News. The island takes up the sixth spot in insurance density, second only to Hong Kong in Asia. Taiwan even claims the top place globally in insurance penetration rate (the ratio of premiums underwritten in a particular year to the GDP), according to statistics from the Taiwan Insurance Institute.
With such a high proportion of personal expenses paid on premiums, people should take a closer look at the content of the insurance products, judge whether the coverage suits them well, and arrange their assets in a wiser way, Minister Wellington Koo of the Financial Supervisory Commission (FSC) was quoted as saying by the Liberty Times.
The trend also reflects raised awareness among Taiwanese people regarding the necessity of insurance, driven by economic growth and better education, Mr Koo added.
FSC will continue holding events to educate the public on the various insurance concepts, including senior insurance, microinsurance, earthquake insurance, and compulsory automobile liability insurance.