BMI's Executive Summary for the Taiwan Insurance Report

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This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

Taiwan's IBER is 68.8. Relative to other countries in the Asia Pacific region, it is an attractive insurance market for foreign insurers. Within the region, Taiwan stands out for the current size of the life segment and the likely absolute growth in life premiums. The economic outlook is generally germane, although in the longer term we expect that the rise of the manufacturing sectors of developing economies such as Vietnam might pose problems. Government policies are likely to remain constant over the long term. However, the IBER is held back by the legal framework and bureaucracy in Russia.

Over the forecast period, we anticipate that non-life premiums will grow by 12% annually in local currency terms and by 14% in US dollar terms. Life premiums are expected to increase by 1% annually in local currency terms and by 3% in US dollar terms. The key drivers of growth in the non-life segment in 2007-2012 are the anticipated rise in nominal GDP from around US$378.93bn to US$566.40bn and an expected increase in non-life penetration from 2.47% of GDP to 3.20%. The key driver of growth in the life segment is the envisaged rise in life density from US$1,926.84 per capita in 2007 to US$2,200 per capita in 2012. Taiwan's total population is expected to grow marginally from 23mn to 23.37mn in the same period.

The competitive landscape, in both the non-life and the life segment, is fragmented. Both segments are open to participation by foreign groups, although foreigners are traditionally more important in the life than in the non-life segment. Conversely, we judge the non-life segment as being currently more open to foreign companies.

Automobile insurance continues to comprise over 50% of the premiums for the non-life segment. However, voluntary automobile insurance has been in the decline. The only area of significant growth in the non-life segment has been marine insurance.

In general, Taiwan is a relatively low-risk insurance environment, and both segments are expected to continue to grow over our forecast period.

Contents of the Taiwan Insurance Report

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Chapter 1 - The Sector At A Glance

Table: Overview

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution of The Insurance Sector (In Millions Of Currency Specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections (In Millions Of Currency Specified)

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: Taiwan - Economic Activity

Chapter 6 - Country Update

Political Risk Uncertain Future For President Chen

Economic Risk Feeling The Energy Pinch

Business Environment New Shipping Route Opened

Chapter 7 - Analysis of Competitive Conditions

Table: Non-Life Segment Rankings Of Markets

Table: Presence Of Cross-Border Insurers Non-Life

Table: Selected Local Insurers

Table: Life Segment Rankings Of Markets

Table: Presence Of Cross-Border Insurers Life

Table: Selected Local Life Insurers

Whos Who In The Asia-Pacific Region?

Chapter 8 - Regional Context

Table: Regional Context - Premiums

Table: Regional Context Total Premiums

Chapter 9 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 10 - Appendix

Table: Middle East And Africa - Latest Estimates / Actual Figures For 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010 (Growth In US Dollar Terms)

Competitive Landscape for Asia Insurance Reports: Sample of
    Companies Ranked

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A cross-border overview of key players and their insurance market share across Asia. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Asian Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports