Market Trends of Taiwan Motor Insurance Industry
This section covers the major market trends shaping the Taiwan Motor Insurance Market according to our research experts:
Taiwan’s Insurance penetration is highest in the world
In 2021, Taiwan had 17.4% of life and non-life insurance penetration in selected countries worldwide. The market share of the top 20 countries also rose slightly to 90.7 percent in 2021 from 90.5 percent in 2020. Among the top 20 countries of the world, six Asian countries (China, Japan, South, Korea, Taiwan, India, and Hong Kong) have a market share of about 25 percent.
It is expected that emerging markets shall continue to outpace advanced markets and Asia to outperform other regions, with the ongoing shift in economic power from west to east reflected in the source of global premium growth.
Insurance density has potential to increase
Insurance density can increase in the coming year due to the economy's recovery and an increase in GDP (Gross domestic product) per capita income. The insurance industry will grow in the coming years. Government initiatives to boost the insurance industry by implementing new regulations and economic policies may boost consumer spending.
The demand for insurance in Taiwan is still primarily driven by government legislation and the consumer penetration strategies of major insurance players. Recently, the digital platforms through which products and services are provided are on the rise.
We see many more motor insurance policies sold online. Digital platforms, when adequately designed and when taking into account the target market's needs, are certainly beneficial; they allow insurers to easily access large pools of new customers whose demands and needs are aligned with the relevant product offer. They can also lower the costs of distribution.
