Page 17 - Insurance Times April 2022

growth will support general insurance fect in December 2021. It creates a lines which collectively accounted for
industry growth, which is expected to transparent and unified legal frame- 75% share of the life insurance DWP in
grow by 7.3% in 2022.” work for insurers and support insurance 2020. It registered a decline of 11.1%.
Global Insurance Database reveals growth. Property insurance is fore- The outlook is optimistic as these busi-
casted to grow at a CAGR of 9.0% over ness lines are forecasted to grow by
that personal accident and health
2021-2026. 1.4% in 2022.
(PA&H) insurance was the largest gen-
eral insurance line, accounting for a Marine, aviation and transit (MAT), GlobalData’s Global Insurance Data-
32.2% share of the GWP in 2020. The Liability, and Financial lines insurance base reveals that the demand is ex-
segment grew by 5.1% in 2020 driven accounted for the remaining 12.5% pected to be supported by foreign cur-
by increased consumer awareness due share. rency policies that offer possibilities of
to COVID-19, growing middle-class Ansari concludes: “Vietnam’s economic better returns as compared to the Tai-
population, and rising medical costs. wanese dollar. To support the growth
growth looks strong over the next five
Nearly 90% of the Vietnamese popu- years as it aims to become a high-in- of these products, in June 2021, the
lation is covered under mandatory come economy by 2045. Economic regulator increased the limit for life
public health insurance. However, a growth and favorable regulatory poli- insurers operating in foreign-currency-
gap in coverage due to rising medical cies will support the growth of the Viet- denominated insurance businesses
costs and disparity in the quality of namese general insurance industry.” from 35% to 40%.
public healthcare services have sup- Protection insurance products such as
ported the demand for private insur- Life insurance industry in
personal accident and health (PA&H)
ance. Almost 7% of the population cur- Taiwan to reach $121.2bn insurance sold by life insurers ac-
rently avails private health insurance in
the country. PA&H insurance is ex- in 2025 counted for a 14.8% share of DWP in
2020. It is expected to grow by 0.9%
pected to grow at a CAGR of 8.2% The life insurance industry in Taiwan is
during 2021-26. projected to grow at a compound an- in 2022, driven by preventive and dis-
ease-specific insurance products such
Motor insurance was the second larg- nual growth rate (CAGR) of 0.4% from as cancer insurance products that are
est line, accounting for 30.5% of gen- TWD3.16 trillion ($107.0bn) in 2020 to particularly popular given that it is the
eral insurance GWP in 2020. The seg- TWD3.23 trillion ($121.2bn) in 2025, in leading cause of death in Taiwan.
ment grew by 6.3% in 2020, driven by terms of direct written premiums
recovery in motor vehicle sales. Motor (DWP), according to GlobalData, a Annuities that accounted for a 9.5%
insurance is expected to grow at a leading data, and analytics company. share in 2020 are expected to record
CAGR of 8.0% during 2021-2026. The growth is expected to pick up from a 71.9% growth in 2021. Demographic
Property insurance was the third-larg- 2022 supported by growing demand for factors that include a super-aging so-
est segment with 24.8% GWP share in foreign-currency-denominated invest- ciety and promotion of foreign cur-
2020. There is a growing demand for ment insurance products and the ag- rency-denominated products that offer
natural catastrophe insurance due to ing population. better returns supported the demand
the increased frequency of natural di- Deblina Mitra, Senior Insurance Ana- for these products. Annuities are fore-
sasters in the country. lyst at GlobalData, comments: “After casted to grow by 3.0% in 2022.
In addition, over the last couple of contracting in 2019 following years of Mitra concludes: “Taiwan’s life insur-
years, the government has added new slowdown, Taiwan’s life insurance in- ance industry’s growth momentum is
products to increase the ambit for dustry further contracted by 8.7% in expected to remain subdued over the
compulsory construction insurance. For 2020. This was due to low-interest next five years as challenges related to
instance, in June 2020, the govern- rates and capital market fluctuations adverse market condition, declining
ment passed a law mandating the con- that reduced yields from life insurance working-age population, and an exist-
struction contractors to purchase in- investment products, lowering their ing mature market will continue to
surance for construction workers work- demand. This trend is expected to con- oppress the demand. The demographic
ing on sites, and civil liability insurance tinue in 2021 and the industry is ex- shift towards the super-aging popula-
for third parties. pected to decline by 5.9%.” tion is expected to be a focus area for
Another regulation on mandatory fire The decline was prominent in whole insurers with more products being
and explosion insurance came into ef- life, term life, and endowment business launched targeting this age group.” T

The Insurance Times, April 2022 17