Taiwan insurance market GWP could grow to $31B by 2026
A recent report from GlobalData predicts the Taiwan general insurance market could see a CAGR of 5.4% through 2026.
As of 2021, the Taiwan general insurance industry was at $25.5 billion in gross written premiums (GWP), but it could surpass $31.3 billion in GWP by 2026, according to a recent forecast from GlobalData — equating to a compound annual growth rate of 5.4%.
“The general insurance industry in Taiwan is expected to register a slower growth of 3.5% in 2022 after registering double-digit growth of 10.1% in 2021,” Shabbir Ansari, senior insurance analyst at GlobalData, said in a release. “Sluggish growth in motor insurance, which accounts for over 50% of the general insurance premiums, is expected to impact the industry growth. However, the industry is expected to recover from 2023 onwards and witness an upward growth trend supported by the economic stability and recovery in vehicle sales.”
Motor insurance is the largest line in Taiwan, with GlobalData reporting it makes up a 52.3% share of GWP. Despite motor insurance’s large share, they predict things will remain slow in 2022 – mostly due to the decrease in vehicle sales due to supply chain disruptions. However, the line is expected to recover in 2023 as vehicle sales bounce back.
Premiums could also be driven higher due to proposed amendments that would tack an additional fee onto traffic violations under the compulsory motor third-party liability (MTPL).
“Taiwan’s general insurance industry is poised for consistent growth over the next five years, driven by motor and property lines,” Ansari continued in the press release. “The growth, however, might get overshadowed by the economic uncertainties due to a potential global recession and geopolitical instabilities.”
GlobalData reports property insurance is the second-largest line in Taiwan (18.7% of GWP in 2021), followed by personal accident and health insurance (11% of GWP in 2021). Marine, aviation and transit (MAT), miscellaneous, liability and financial lines liability accounted for the remaining 18% of the market in 2021.