Taiwan: Insurance sector's risk exposure to Russia estimated at $5bn
Source: Asia Insurance Review | Mar 2022
The Insurance Bureau of the Financial Supervisory Commission (FSC) has revealed that although Taiwan has no risk exposure in insurance in Ukraine, the risk exposure in Russia is as high as NT$147bn ($5.3bn).
With the possibility of military conflict between Russia and Ukraine rising steeply, the FSC is assessing Taiwan’s financial risk exposure to both countries. The total exposure is estimated at around NT$230bn, reported Central News Agency.
The assessment was made of Taiwan’s risk exposure in banking, insurance, and securities to the two countries.
The FSC’s Banking Bureau said that as of the end of December 2021, loans from Taiwan’s 38 banks to Russia put their credit risk exposure at a total of NT$5.3bn, while the banks’ credit exposure to Ukraine was NT$6m.
The FSC’s Securities and Futures Bureau said that private investors are exposed to risks through acquiring securities and futures through domestic and overseas investment funds. The risk exposure of private investors using domestic funds to invest in Russia has been calculated at NT$21.4bn, while the risk faced by those using overseas funds is NT$35.4bn.
The risk exposure for private investors using domestic funds to invest in Ukraine has been calculated at NT$5.08bn, while the risk faced by those using overseas funds is NT$15bn. A