KUALA LUMPUR, Oct 31 (Bernama) -- Global credit rating agency, AM Best has maintained its stable outlook on Taiwan’s non-life insurance segment, noting that premium growth prospects remain robust and are supported by steady economic conditions and strong insurance demand.
The stable outlook was also underpinned by insurers' healthy operating profitability in 2024 and regulatory initiatives that support improvements in underwriting strategies, according to the Best’s Market Segment Report, “Market Segment Outlook: Taiwan Non-Life Insurance”.
According to the report, Taiwan’s non-life segment achieved double-digit growth in direct premiums written during the first half of 2025, continuing the growth momentum of the past two years. Despite concern about rising tariffs, economic growth has remained resilient.
“While Taiwan should continue to benefit from its leading position in the manufacturing of artificial intelligence (AI)-related products, uncertainties in global demand and the United States trade policy, especially for the technology sector, cloud the outlook,” said AM Best financial analyst, Madison Fan.
According to AM Best in a statement, exposure to natural catastrophes, which can create volatility in underwriting results, and capital market disruptions and exchange rate fluctuations also partially offset the market positives.
The report states that Taiwan’s non-life industry recorded good underwriting margins over the past two years, with the average return-on-equity ratio in 2024 reaching 16 per cent.
Following the adverse pandemic losses, the industry players have strengthened their underwriting strategies. In addition, regulatory updates for electric vehicle (EV) motor insurance and medical insurance are supportive of improving the quality of underwritten risks.
Taiwan’s insurance industry will simultaneously roll out its new generation solvency regime, known locally as TW-ICS, alongside the adoption of IFRS 17 by 2026, which requires insurers to use fair value measurements for assets and liabilities to provide a more realistic basis for assessing financial strength and risk exposure.
-- BERNAMA
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