Taiwan’s domestic non-life insurance premiums continued to rise in 2024, increasing by 10.5% to TWD 278.5 billion (USD 9.2 billion), according to a recent report by AM Best.
All of AM Best’s rated entities recorded premium growth during the year, supported by expansions in voluntary motor, travel insurance, and commercial lines.
Combined gross written premiums among AM Best’s eight rated non-life insurers grew by 10.6% to TWD 192.8 billion—closely aligning with the 10.5% growth seen across all 14 domestic non-life insurers.
The overall capital and surplus level of Taiwan’s non-life insurance sector also improved, surpassing TWD 150 billion in 2024.
Motor insurance—particularly voluntary motor—remained the primary driver of growth, accounting for nearly half of all direct written premiums in 2024. However, overall premium growth slowed slightly, partly due to weaker new car sales in 2024 and into the first quarter of 2025.
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To support coverage for electric vehicles (EVs), Taiwan’s insurance regulator introduced standardised EV motor policy terms in the second half of 2024.
James Chan, director, AM Best, said, “However, the motor segment remains cautious over expanding in this product line while insurers continue to accumulate data and claims experience to aid pricing sophistication.”
The report also highlighted a significant improvement in operating profitability in 2023 and 2024, following a historically weak performance in 2022. This turnaround was attributed to the release of pandemic insurance-related reserves and non-life insurers efforts to bolster underwriting guidelines.
Chan added, “Company strategies have included non-renewing unprofitable policies, increasing rates, raising policy deductibles, or applying higher co-insurance percentages.
“These measures are aimed at passing on part of the rising reinsurance costs and potential future losses to policyholders. Insurers also have adopted a more proactive approach in offering risk advisory services and implementing loss prevention measures.”
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