Taiwan
There are 27 life, 23 non-life and 3 reinsurance companies in Taiwan as of 2020. Throughout 2002-2018, insurance density increased to 148,000NTD from 44,000NTD, insurance penetration also increased to 20.88% from 9.28%. From 2003-2019, total premium income increased to 3.64trillion from 1.24trillion.
Insurance Market
In 2019, 64% FYP of life insurance is contributed by FubonLife, CathayLife, NanShanLife, ChinaLife and ShinKongLife. Since June 2020, investment/savings policies and interest-sensitive insurance have been the best-selling products for the last few years. Considering the Taiwan regulator has scheduled to adopt IFRS17 & ICS in 2026, the development of new life products has been transformed from savings products to protection products.
Pension
The public sector pension scheme is a DB scheme funded by employees (35%) and government (65%). For the private sector, there are three pension schemes: Labour Insurance, Old Labour Pension Fund and New Labour Pension Fund. Labour Insurance is mandatory and provides regular insurance and occupational insurance. Old Labour Pension Fund is a DB scheme with lump sum payments with very strict eligibility criteria which leads to the introduction of the New Labour Pension Fund. The New Labour Pension Fund is a DC scheme where employers must contribute 6% of employees’ salaries to the employees’ individual retirement account.