The Life Insurance Market
The total premium income of the life insurance market in Taiwan for 2010 was NT$2,312,850 million, an increase of 15.26% over the previous year. Of the total, life insurance accounted for 64.68% of the market share while personal accident insurance accounted for 2.43%, health insurance for 10.10%, and annuity insurance for 22.79%. Individual insurance accounted for 99.13% of the life insurance market while group insurance accounted for just 0.87%. The following table illustrates this data.
 Premium Income of Life Insurance
|
NT$ millions |
| Line |
2010 |
2009 |
Premium Income |
Growth Rate % |
Share % |
Premium Income |
Growth Rate % |
Share % |
Life |
1,495,849 |
14.57 |
64.68 |
1,305,573 |
(2.23) |
65.07 |
Personal Accident |
56,151 |
(1.31) |
2.43 |
56,894 |
(2.08) |
2.83 |
Health |
233,786 |
6.48 |
10.10 |
219,556 |
11.26 |
10.94 |
Annuity |
527,064 |
24.15 |
22.79 |
424,536 |
29.43 |
21.16 |
Total |
2,312,850 |
15.26 |
100.00 |
2,006,559 |
4.57 |
100.00 |
Source: Taiwan Insurance Institute |
As a result of economic recovery and a rebound in investments, the domestic life insurance market grew by 14.57% in 2010. Taiwanese people have a high savings rate and tend to choose endowment insurance.
Personal accident insurance premiums declined by 1.31% in 2010, owing to competition that resulted from non-life insurers entering the market.
Reflecting Taiwan’s increasingly ageing population and associated demand for medical and nursing services for the elderly, the health insurance grew by 6.48% in 2010. In addition, non-life insurance companies and Chunghwa Post have expanded their health insurance business since 2008.
Taiwan’s graying population has also driven growth of annuity insurance, and an ever-wider range of products is appearing in the market. Short-term variable annuities have become one of the most popular products. In 2010, the annuity insurance market reached NT$527,064 million, a spectacular growth of 24.15% over 2009.
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