Stock Markets Steady, Life Insurance Investment-Linked Policies See 90% YoY Growth in New Premiums for First 5 Months

(CNA reporter Su Ssu-yun, Taipei, June 16) According to the latest statistics from the Life Insurance Association, new policy premiums in Taiwan's life insurance industry reached NT$618.351 billion in the first five months of this year, a 48.7% year-on-year increase. Among these, new premiums from investment-linked policies amounted to approximately NT$338.5 billion, up 90.3% year-on-year. The association stated that the growth was primarily driven by stable performance in major global stock markets and a rebound in public investment confidence, which boosted demand for investment-linked policies.

The Life Insurance Association released its latest performance statistics today. When including revenue from non-insurance contracts, the life insurance industry's total premium income for the first five months of the year reached NT$1.31314 trillion, a 23.9% year-on-year growth. This includes first-year premium income of NT$618.351 billion, up 48.7% year-on-year, and renewal premium income of NT$69.4788 billion, up 7.9% year-on-year.

Looking at monthly new contract premiums, the life insurance industry recorded approximately NT$127.825 billion in new premiums in May. Traditional policy new premiums reached about NT$49.5 billion, up 7.9% year-on-year, while investment-linked policy new premiums surged to NT$78.3 billion, a 210% year-on-year increase.

Cumulatively, new contract premiums for the first five months of the year totaled approximately NT$618.351 billion, a 48.7% year-on-year increase. Traditional policy new premiums amounted to about NT$279.8 billion, up 17.6% year-on-year.

The association noted that the growth momentum in traditional policies stemmed from three main factors. First, although the U.S. Federal Reserve has maintained its benchmark interest rate unchanged recently, the current declared interest rates for U.S. dollar-denominated policies remain attractive. Additionally, some life insurers have raised the declared interest rates for U.S. dollar variable-rate policies, boosting sales.

Second, in response to the insurance industry's adoption of International Financial Reporting Standard 17 (IFRS 17) and the new solvency regime starting this year, insurers have adjusted their product strategies, developing and promoting protection-type and regular-premium insurance products with higher Contract Service Margin (CSM) and better capital efficiency.

Third, in response to aging society trends, insurers have continuously optimized product designs, launching dividend policies and variable-rate insurance products with multiple functions such as protection, asset accumulation, and wealth succession, and promoting them through bank channels, thereby driving sales momentum for traditional insurance products.

Meanwhile, new premiums for investment-linked policies in the first five months of the year reached approximately NT$338.5 billion, a substantial 90.3% year-on-year growth.

The association analyzed that investment-linked policies benefited mainly from the stable performance of major global stock markets and a rebound in public investment confidence, which drove demand for such policies and boosted first-year premium income growth. Additionally, life insurers have continued to deepen cooperation with banks and asset management firms, maintaining diversified sales channels. (Edited by Chang Liang-chih) 1150616