Taipei City Report Overview of The Insurance Market of Taiwan. Mr. Luke Hsu, Vice President Taiwan Insurance Institute May 7th, 2018

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1 Taipei City Report Overview of The Insurance Market of Taiwan Mr. Luke Hsu, Vice President Taiwan Insurance Institute May 7th, 2018

2 2 AGENDA I. Overview of Taiwan s Economy II. Overview of Taiwan s Insurance Market III. Key Developments of Taiwan Insurance Market

3 3 I. Taiwan s Economy USD, Billions Nominal GDP & Economic Growth Rate Nominal GDP Economic Growth Rate % (2.00) (4.00) Source: Directorate General of Budget, Accounting and Statistics (DGBAS) of Executive Yuan

4 4 I. Taiwan s Economy % CPI Growth Rate 4.0% 3.5% 3.52% 3.0% 2.5% 2.0% 1.5% 1.0% 1.80% 0.97% 1.42% 1.93% 0.79% 1.20% 1.39% 0.62% 0.5% 0.0% -0.5% -1.0% -1.5% % -0.30% Source: Directorate General of Budget, Accounting and Statistics (DGBAS) of Executive Yuan

5 5 I. Taiwan s Economy GDP per Capita (USD) 30,000 25,000 20,000 17,026 17,814 18,131 16,988 19,278 20,939 21,308 21,916 22,668 22,400 22,561 24,337 15,000 10,000 5, GDP Per Capita Source: Directorate General of Budget, Accounting and Statistics (DGBAS) of Executive Yuan

6 6 I. Taiwan s Economy Unemployment Rate 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 5.21% 4.39% 4.24% 4.18% 3.96% 3.78% 3.92% 3.76% 0.0% Source: National Statistics R.O.C.

7 I. Taiwan s Economy Demographics 18.00 Population Birth Rate, Death Rate and Growth Rate 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.

7 7 I. Taiwan s Economy Demographics Population Birth Rate, Death Rate and Growth Rate Birth Rate Death Rate Growth Rate *Source: Department of Household Registration, M.O.I.

8 I. Taiwan s Economy Demographics MALE Population Pyramid FEMALE 1,200 765 879 909 896 918 1,009 853 837 836 708 1,000 800 583 558 521 530 600 169 169 262 319 400 200 *Source: Department of

8 8 I. Taiwan s Economy Demographics MALE Population Pyramid FEMALE 1, , , *Source: Department of Household Registration, M.O.I. TOTAL POPULATION : 23,539,816 80~84 75~79 70~74 65~69 60~64 55~59 50~54 45~49 40~44 35~39 30~34 25~29 20~24 15~19 10~14 5~9 0~4 Thousands , % 73% ,000 1, Working-Age Population

9 9 II. Taiwan s Insurance Market Market Players Domestic International Domestic International Domestic International Total : 28 Total : 23 Total : 3

10 10 II. Taiwan s Insurance Market Industry Performance USD, Million 120, ,000 80,000 60,000 WRITTEN PREMIUM 82,503 85,982 76,783 73,372 63,101 64,336 66,934 53, ,105 92,170 97, ,554 P&C 4.5% LIFE 95.5% 40,000 20, LIFE P&C TOTAL

11 11 II. Taiwan s Insurance Market Industry Performance Brokers & Agents 7% Life Insurance Others 0% Channel Distribution Non-Life Insurance Broker 17% Direct 8% Bankassurance 51% Direct 42% Insurance SalesPerson 44% Insurance Agency 31% Direct Bankassurance Brokers & Agents Others Direct Insurance SalesPerson Insurance Agency Broker

12 12 II. Taiwan s Insurance Market Industry Performance USD, Million 5,000 4,000 3,000 2,000 1, ,000-2,000-3,000-4,000-5,000 NET INCOME 4,309 4,052 3,738 3,682 2,944 1,950 1,363 1, ,951 LIFE P&C TOTAL P&C 9.2% LIFE 90.8%

13 13 II. Taiwan s Insurance Market Industry Performance 20.0% 10.0% 0.0% ROE 9.4% 11.5% 11.1% 11.6% 11.3% 7.0% 9.9% 10.0% 2.4% 1.5% -2.3% % -20.0% -30.0% -32.4% -40.0% -50.0% LIFE P&C TOTAL

14 14 II. Taiwan s Insurance Market Industry Performance Marine, 4.3% Aviation, 0.4% Fire, 16.1% Fire & Auto ~71% Property & Casualty Insurance Automobile, 54.8% Miscellaneous, 24.4%

15 15 II. Taiwan s Insurance Market Industry Performance NTD, Million 100, , , , ,000.0 P&C WRITTEN PREMIUM BY LINE OF INSURANCE 80, , bil USD 7.3% Automobile * Miscellaneous 50, , , , % Fire 30, , , , % Marine 10, % 30.9% Aviation *Miscellaneous includes Engineering, Liability, Credit, Accident, Health and Other Insurance

16 16 II. Taiwan s Insurance Market Industry Performance Life Insurance

17 17 II. Taiwan s Insurance Market Industry Performance NTD, Million LIFE WRITTEN PREMIUM BY INSURANCE TYPE 2,237,540 2,680,802 2,525, % , , ,157 Life Health Annuity Accident 4.4%

18 18 III. Key Developments of Taiwan Insurance Market Taipei Casualty Report Date/Time: 23:50 p.m. Feb Epicenter: Hualien Scale : M L 6.0 Casualties: 17 Death, 291 Injuries Insurance Loss : NTD 170 Million as of Feb 22, 2018.

Based Insurance Internet Insurance Service IoT

Detector Automated Claim payment combined with

Development Development on InsurTech and Digitalized

oversea operation in accordance with government

Operation in Accordance with Government Policy

related to NatCat Protection gap for NatCat remains

19 19 III. Key Developments of Taiwan Insurance Market Usage Based Insurance Internet Insurance Service IoT related insurance Electronic Policy i.e. Smart Home Detector Automated Claim payment combined with Residential Fire Insurance Cyber Insurance Product Development Development on InsurTech and Digitalized Service using Blockchain Technology Expanding oversea operation in accordance with government policy Incentive for Green Energy Expanding Operation in Accordance with Government Policy Develop Insurance Product and enhance solvency related to NatCat Protection gap for NatCat remains high Agriculture and Aquaculture insurance (Parametric and non- Insurance parametric) Formulating plans for adopting NatCat capital in RBC

20 20 III. Key Developments of Taiwan Insurance Market Amend Regulations Governing Insurance Enterprises Engaging in Operating Reinsurance and Other Risk Spreading Mechanisms Tighten Regulation for Commercial Fire and Motor Insurance Premium Rating Regulatory Change Amend Regulations Governing Foreign Investments by Insurance Companies

21 21 III. Key Developments of Taiwan Insurance Market Promote Product Development RBC2 IFRS 9 IFRS 17 Innovative Product Regulatory Sandbox

22 22

Insurance Brokers Statistics 2015 Companies with HO in Malta

Insurance Brokers Statistics 2015 Companies with HO in Malta Insurance Brokers Statistics Companies with HO in Malta 1. Gross premiums placed Insurance 14,356 Reinsurance - 88.8 14,356 Insurance 1,807 Reinsurance - 11.2 1,807 16,163 100.0 Insurance 61,166 Risks