Taiwan: Life Insurance Sector Faces Volatility in 2025
Taipei, Taiwan – The life insurance sector in Taiwan is expected to remain volatile throughout 2025, according to a report published recently by Taiwan Ratings Corporation (TRC), a subsidiary of S&P Global Ratings.
The report, titled “Taiwan Life Insurance Sector: Operating Surplus to Remain Volatile in 2025,” highlights the shifting landscape of operating surpluses within the industry. While interest surplus remains the primary contributor to profits, followed by mortality and loading surpluses, insurers face increasing challenges.
According to the report, several key factors are influencing the sector’s performance:
- Interest surpluses continue to be volatile, significantly impacting profitability.
- The sector’s mortality buffer is shrinking, making it more vulnerable to market fluctuations.
- Rising losses in health insurance products are creating volatility.
Rising losses on health insurance products are creating volatility
New insurance products incorporating tools like claim payment limits, non-guaranteed renewals, and adjustable premiums could help to balance loss experience and slow the reduction in mortality surplus. Insurers are actively seeking measures to manage risks and navigate the evolving market conditions.
For those interested, the full report is available to subscribers of TRC’s Rating Research Service.
