The Non-Life Insurance Market
The chart below lists the premium income and distribution by line of business for the years 2005 and 2006. The total premium income of 2006 was over NT$114,106 million, representing a drop of 3.71%. This decrease was primarily caused by the spending crunch, which resulted from consumer defaults of cash cards and credit cards leading to a reduction in new car sales rate by 30%.
Except for a few lines of business, which grew slightly, most types of insurance saw a fall in sales, with miscellaneous casualty business suffering the most at 10.16%. As to the market share, voluntary automobile insurance took the lead at 34.23%.
 Premium Income of Non-Life Insurance
|
In NT$ million |
Line |
2006 |
2005 |
Premium Income |
Growth Rate % |
Share % |
Premium Income |
Growth Rate % |
Share % |
Fire |
19,835 |
(2.43) |
17.38 |
20,330 |
(1.71) |
17.16 |
Marine & Aviation |
10,439 |
(1.85) |
9.14 |
10,636 |
(7.91) |
8.97 |
Voluntary Automobile |
39,058 |
(4.74) |
34.23 |
41,003 |
10.01 |
34.60 |
Compulsory Automobile Liability |
18,276 |
2.34 |
16.02 |
17,859 |
0.47 |
15.07 |
Engineering |
5,318 |
(6.88) |
4.66 |
5,711 |
(19.07) |
4.82 |
Miscellaneous Casualty |
19,097 |
(10.16) |
16.74 |
21,257 |
7.84 |
17.94 |
Earthquake |
2,083 |
22.10 |
1.83 |
1,706 |
20.31 |
1.44 |
Total |
114,106 |
(3.71) |
100.00 |
118,502 |
2.63 |
100.00 |
Data source: Taiwan Insurance Institute |
Going forward, the Non-Life Insurance Association of the Republic of China indicated that sales of personal accident, marine cargo, automobile and some types of liability insurance may grow slightly in 2007. It is expected that from 1 July 2007, non-life insurers may be allowed to provide health insurance, which may help the industry by generating a yearly premium income estimated at NT$ 2 billion.
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