Taiwan Insurance Report Q3 2012

Date: July 3, 2012
Pages: 86
US$ 1,175.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Download

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Includes 3 FREE quarterly updates

The Taiwan Insurance Report considers the prospects for life and non-life insurers in the market. BMI sees Taiwan’s insurance sector as standing out from its peers in other countries for two reasons. The first is that, by many metrics, density (ie: premiums per capita) in particular, the country is an exceptionally highly developed market for insurance. A country that for much of the last 30 years has consistently run a current account surplus has mobilised savings substantially through a life insurance segment that is dominated by massive domestic financial conglomerates. The absolute size, relative size, access to capital, brand and distribution networks of the massive Taiwanese financial services conglomerates – Cathay, Fubon and Shin Kong – which own the eponymous life companies and associated non-life companies, make them formidable competitors. Chunghwa Post – the local counter part of Japan Post Insurance or La Poste in France – is also an important player in the life segment. In essence, the competitive landscape has been shaped by Taiwan’s peculiar political situation. Like their South African and Israeli counterparts, the Taiwanese financial giants have had limited access to foreign capital for much of their history – and have had to engage in complex deal making within the national boundaries.

Nevertheless, as Allianz and – under AIG’s ownership – Nan Shan have shown, it is possible for foreign companies to build very substantial businesses in Taiwan. As of mid-2012, France’s AXA is looking to re-enter the Taiwanese life market.

However, Taiwan is also unusual in that the market – particularly in the life segment – is shrinking. Falling sales of interest-linked annuities have only partially been offset by higher sales of traditional life insurance products. During 2011, government policies had discouraged the sale of variable interest products that had been seen as being in competition with term deposits. In part because of their own problems in other markets, but also because of the lack of perceived opportunities, a number of large foreign groups have scaled down, or sold, their operations in Taiwan. In mid-2012, reports indicate that at least some players are selling products regardless of profitability. In some ways, the absolute size of the Taiwanese insurers is a disadvantage. Although they are expanding beyond the confines of the island (most notably in mainland China but also in Vietnam), their overseas operations are still tiny – and not able to offset the impact of the slowdown at home. Moreover, the massive Taiwanese life companies have significant exposures to bonds in the eurozone.

Over the last quarter, BMI has made the following changes:
  • The report incorporates the latest results published by the main insurance companies. These details were typically released in May 2012 in relation to Q112.
  • We also incorporate the market regulator’s final data for calendar 2011.
  • Our analysis incorporates BMI’s latest forecasts for Taiwan’s economy, including details in relation to auto sales and trends in the healthcare sector.
Executive Summary
  Table: Total Premiums, 2009-2016
Key Insights And Key Risks
SWOT Analysis
Taiwan Insurance Industry SWOT
Taiwan Political SWOT
Taiwan Economic SWOT
Taiwan Business Environment SWOT
Life Sector
Asia Pacific Life Sector Overview
  Table: Asia Pacific Life Premiums, 2008-2016 (US$mn)
Taiwan Life Sector Update
Life Industry Forecast Scenario
  Table: Total Life Premiums, 2009-2016
Growth Drivers And Risk Management Projections
  Table: Insurance Key Drivers – Demographics, 2008-2016
Non-Life Sector
Asia Pacific Non-Life Sector Overview
  Table: Asia Pacific Non-Life Premiums, 2008-2016
Taiwan Non-Life Sector Update
Non-Life Industry Forecast Scenario
  Table: Non-Life Premiums, 2008-2016
Growth Drivers And Risk Management Projections
Macroeconomic Outlook
  Table: Taiwan Economic Activity, 20011-2016
Political Stability Outlook
  Table: Asia Pacific Security Ratings
Healthcare Insurance
Taiwan: Insurance Coverage
Insurance Risk/Reward Ratings
  Table: Taiwan’s Insurance Risk/Reward Ratings
  Table: Asia Pacific Insurance Risk/Reward Ratings
Competitive Landscape
Competitive Landscape Analysis
Major Players In Taiwan’s Insurance Sector
  Table: Ranking Of Life Companies By Premiums, 2010 (TWDmn)
  Table: Ranking Of Non-Life Companies By Premiums, 2010 (TWDmn)
Company Profiles
Local Company Profiles
Cathay Life Insurance
Fubon Life Insurance
MSIG Mingtai Insurance
Shin Kong Life Insurance
Regional Company Profiles
AIA Group Limited
BNP Paribas Cardif
HSBC Insurance
Liberty Mutual
Prudential Financial
Prudential plc
Sun Life Financial
The Principal Financial Group
Zurich Insurance Group
BMI Methodology
Insurance Risk/Reward Ratings
  Table: Insurance Risk/Reward Indicators And Rationale
  Table: Weighting Of Indicators
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Taiwan Insurance Report Q1 2016 US$ 1,295.00 Jan, 2016 · 68 pages
Taiwan Insurance Report Q2 2015 US$ 1,295.00 Apr, 2015 · 80 pages
Taiwan Insurance Market Intelligence: 2011 Edition US$ 600.00 Jan, 2011 · 25 pages
Taiwan Insurance Report Q4 2015 US$ 1,295.00 Oct, 2015 · 81 pages
Insurance in Taiwan US$ 350.00 Jan, 2016 · 38 pages

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