Life insurance - Taiwan | Statista Market Forecast

The Life insurance market market in Taiwan is projected to reach a market size (gross written premium) of US$98.05bn in 2024.
The average spending per capita in the Life insurance market market is estimated to amount to US$4.09k in 2024.
Looking ahead, the market is expected to exhibit an annual growth rate (CAGR 2024-2029) of -2.63%, resulting in a market volume of US$85.81bn by 2029.
When compared globally, it is worth noting that the United States is anticipated to generate the highest gross written premium in the Life insurance market market, reaching US$1.3tn in 2024.
Taiwan's life insurance market is experiencing a shift towards digitalization, with increasing demand for online policy purchases and customer self-service options.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

The Life insurance market in Taiwan has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Taiwan have shown a growing interest in life insurance products due to increasing awareness about financial planning and protection. They are looking for comprehensive coverage that not only provides financial security for their loved ones but also offers investment opportunities for wealth accumulation.

Trends in the market: One notable trend in the Taiwanese life insurance market is the rising popularity of unit-linked insurance products, which combine life insurance coverage with investment options. This trend is driven by the desire of customers to maximize returns on their premiums while still ensuring protection for their families. Additionally, there is a growing demand for health-related insurance products, reflecting the increasing focus on wellness and healthcare in Taiwan.

Local special circumstances: Taiwan's unique demographic profile, with an aging population and low birth rate, has contributed to the growth of the life insurance market. As individuals seek to secure their financial future in the face of demographic challenges, the demand for life insurance products has increased. Moreover, the competitive landscape in Taiwan, with both domestic and foreign insurance companies vying for market share, has led to innovation and product diversification to cater to the evolving needs of customers.

Underlying macroeconomic factors: The stable economic environment in Taiwan, supported by sound regulatory frameworks and a strong financial sector, has provided a conducive backdrop for the growth of the life insurance market. Additionally, low interest rates have prompted individuals to seek alternative investment options, making life insurance policies with investment features an attractive choice for many Taiwanese consumers. Overall, the combination of favorable economic conditions and changing customer preferences is driving the continued expansion of the life insurance market in Taiwan.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.