As Taiwan’s demography ages, it is transforming the country’s life insurance scenario. The changing scenario brings with it challenges aplenty for life insurers. It is, however, always a matter of a glass half full or half empty. Amid the challenges exist a variety of opportunities. RGA Taiwan’s Mr Jae Ho lays down for the insurers how they can make the best use of these opportunities.
The Taiwanese life reinsurance market is undergoing a significant transformation, shaped by demographic shifts. Taiwan should achieve super-aged society status in 2025, regulatory changes (Insurance Capital Standards (ICS) and International Financial Reporting Standards (IFRS)) implementation in 2026) and evolving consumer expectations from different distribution channels.
Reinsurers play a critical role in supporting primary insurers as they adapt to these changes, particularly in product innovation, risk management, capital efficiency, and strategic development.
Speaking with Asia Insurance Review, RGA Taiwan CEO Jae Ho said, “The heightened risks to earnings and capital, resulting from currency volatility and foreign asset exposure, increase the operational challenges for insurance companies. This has elevated the importance of robust reinsurance strategies and tools to mitigate financial risks and stabilise balance sheets.
Opportunities for reinsurers
Mr Ho said in light of these challenges, reinsurers are finding opportunities in several areas. These include the following:
Product development for the senior market: With over 20% of Taiwan’s population expected to be aged 65 or older by the end of 2025, the market is looking for more products and underwriting solutions to streamline the purchase process for elderly.
Reinsurance companies have played an important role in customising solutions to add value in this area. Reinsurers are collaborating with insurers to design products tailored to suit older demographics, including flexible underwriting and coverage for chronic conditions.
Health and critical illness (CI) coverage: Post-pandemic awareness has driven demand for advanced medical and CI products. Reinsurers are helping insurers manage the associated morbidity risks and pricing complexities.
New capital and accounting regime: The upcoming implementation of IFRS17 and ICS in 2026 is prompting insurers to reassess their portfolios. Reinsurers are offering solutions and tools that help optimise contractual service margins and meet new capital requirements.
Mr Ho said, “Overall, reinsurers are well-positioned to support Taiwan’s life insurance sector through innovation, risk-sharing, and strategic partnerships.”
Coping with an ageing society
Elaborating further on how the new demography is transforming the (re)insurance scenario in Taiwan, Mr Ho said, “Taiwan’s ageing population presents both a challenge and an opportunity for life insurers. The demographic shift is reshaping product demand, distribution strategies, and long-term planning.
Senior-focused products: RGA is helping insurers launch products specifically designed for individuals aged 50 and above. These include cancer products, long-term care coverage, retirement income solutions and simplified underwriting offerings to accommodate older applicants. Consumers are seeking coverage for advanced treatments and chronic illnesses, which are more prevalent in older age groups.
Digital engagement: To reach older customers, insurers are investing in digital platforms that offer user-friendly interfaces and personalised services. This includes telemedicine integration and mobile apps for policy management.
Financial literacy and planning: Insurers are also focusing on retirement readiness. Surveys show that many Taiwanese are concerned about income sufficiency in retirement, prompting insurers to offer financial planning tools and educational resources
Overall, life insurers in Taiwan are adapting proactively, but the ageing trend demands continuous innovation and strategic foresight.
Value addition by private insurers
The state operated Taiwanese health insurance system is one of the best managed globally. Mr Ho said, “Yet the private health insurance companies add value to that system. These include medical reimbursement coverage, critical illnesses covers, long term care products and innovation and flexibility.
Medical reimbursement coverage: Private insurers offer plans that cover services not fully reimbursed by NHI, such as private hospital rooms, alternative therapies, and overseas medical treatment. Such products are quite popular in the Taiwanese market, but due to the increasing medical inflation and customer behaviour risk, managing the risk of these products causes big challenges for insurance companies.
Critical illness (NHI CI): Products that follow the National Health Insurance definition of CI (NHI CI) are the most popular in the Taiwan market. It is easy for distribution channels and end-customers to understand the product coverage. Such products offer lump-sum benefits to supplement customers’ economic loss/needs due to CI.
Long-term care: These areas are not comprehensively covered by NHI. Private insurers fill the gap by providing lump-sum benefits and tailored care packages.
Innovation and flexibility: Private insurers can experiment with new product designs, such as usage-based insurance, wellness incentives, and digital health platforms, which are harder to implement in a centralised system.
“In essence, while Taiwan’s NHI system is robust, private health insurers can enhance its effectiveness by offering complementary services, fostering innovation, and improving access and choice for consumers,” said Mr Ho.
Challenges and opportunities
Speaking about the challenges and opportunities for life reinsurers in the Taiwanese markets over the short term and long term, Mr Ho said, “Regulatory transition: The upcoming IFRS 17 and ICS standards require insurers to reassess their financial reporting and capital adequacy. Reinsurers must support clients in navigating these changes. This is a challenge to the industry but also an opportunity for life reinsurers to bring more tools (e.g. full-risk transfer coinsurance) and solutions to the market to help insurers cope with the challenges.
Taiwan also has a high insurance penetration rate, making organic growth difficult. Reinsurers must help insurers differentiate through product innovation, customised underwriting process, and solutions for different customer segments.
Long-term challenges
Mr Ho said, “Demographic shift is a long-term challenge that affords challenges as well as opportunities. An ageing population will strain retirement and health protection resources, which creates opportunities in the insurance market to meet elderly people’s needs. Flexible senior products with simplified underwriting and coverage for chronic conditions will be more and more important. Of course, this also brings challenges in longevity risk and product pricing and underwriting.”
Taiwan’s affluent population is growing and HNW individuals are seeking solutions for estate planning with high death coverage and tax-efficient structures. The regulator recently released favourable rules to encourage the insurance industry to develop HNW products.
The implementation of IFRS 17 and Insurance Capital Standards (ICS) in 2026 will reshape how insurers manage risk and capital, including new product design, reinsurance partnerships, and transparency in reporting.
He said, “These short-term and long-term opportunities and challenges of the Taiwan life industry will be the main focus for reinsurers supporting their clients’ company management and business development.” A