The Non-Life Insurance Market
The chart below lists the premium income and distribution by line of business for the years 2006 and 2007. The total premium income of 2007 was over NT$112,583 million, representing a drop of 1.33%. This decrease was primarily caused by the spending crunch, which resulted from consumer defaults of cash cards and credit cards leading to a reduction in new car sales rate by 10.55%.
Except for Earthquake business, which grew substantially, most types of insurance saw a slight rise or fall in sales, and Voluntary Automobile business suffering the most at 4.95%. As to the market share, Voluntary Automobile insurance took the lead at 32.97%.
 Premium Income of Non-Life Insurance
|
In NT$ million |
Line |
2007 |
2006 |
Premium Income |
Growth Rate % |
Share % |
Premium Income |
Growth Rate % |
Share % |
Fire |
19,160 |
(1.71) |
17.02 |
19,493 |
(4.12) |
17.08 |
Marine & Aviation |
10,584 |
1.39 |
9.40 |
10,439 |
(1.85) |
9.15 |
Voluntary Automobile |
37,124 |
(4.95) |
32.97 |
39,058 |
(4.74) |
34.23 |
Compulsory Automobile Liability |
18,426 |
0.82 |
16.37 |
18,276 |
2.34 |
16.02 |
Engineering |
5,315 |
(0.06) |
4.72 |
5,318 |
(6.88) |
4.66 |
Miscellaneous Casualty |
19,252 |
0.81 |
17.10 |
19,097 |
(10.16) |
16.74 |
Earthquake |
2,722 |
12.25 |
2.42 |
2,425 |
42.15 |
2.12 |
Total |
112,583 |
(1.33) |
100.00 |
114,106 |
(3.71) |
100.00 |
Data source: Taiwan Insurance Institute |
In December 2007, to prevent insufficient premium rates caused by the market competition, the regulator has revised the related articles and made a regulation that a premium deficiency reserve must be established when future premiums and current reserves are not sufficient to cover future claim payments and expenses for the remainder of a contract period. Going forward, benefited the effect that all one-year-term insurance products should be applied to that new rule, premium income from non-life market is expected to achieve a positive growth in 2008.
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