First-year premiums of Taiwan’s life insurance companies posted a 37.7% decline to NT$217bn ($7.2bn) in the first quarter of this year, compared to the corresponding period last year, according to a statement from the Life Insurance Association.
The decline in first-year premiums was seen for all types of plans except health.
Sales of investment-linked products plunged by 32% from a year earlier to NT$45.6bn in 1Q2020. During this quarter, returns on insurance plans were reduced because of lower interest rates and tighter industry regulations.
The health insurance sector, though, posted growth in the first three months of the year, with sales amounting to NT$10.7bn, buoyed by consumer demand during the COVID-19 pandemic.
Total renewal premiums of life insurers increased by 8.2% to NT$566.2bn in 1Q2020, the data show. Overall, the premium income of the life sector dropped by 10.1% to NT$783.2bn in the first three months of this year.
The breakdown between protection products and investment-type products in the life sector is: