Best’s Market Segment Report: AM Best Maintains Stable Outlook on Taiwan’s Non-Life Insurance Segment

HONG KONG--(BUSINESS WIRE)--AM Best has maintained its stable outlook on Taiwan’s non-life insurance segment amid implementation of Taiwan Insurance Solvency (TIS) and IFRS 17, as well as consistent premium expansion across retail and commercial lines.

Also underpinning the stable outlook, as detailed in the Best’s Market Segment Report, “Market Segment Outlook: Taiwan Non-Life Insurance”, are non-life insurers’ conservative asset allocation and moderate equity exposure that should help protect their overall profitability in the event domestic stock market volatility impacts the segment’s investment results.

According to the report, implementation of TIS and IFRS 17 enhances cross-market comparability and elevates the strategic importance of capital management and earnings volatility analysis. TIS has had a limited impact on the segment’s overall capitalisation, although market-risk capital requirements have increased moderately. The transition to IFRS 17 has been favourable to the segment’s reported capital position, with industry-wide reported shareholders’ equity increasing by approximately 10% at year-end 2025.

Taiwan’s non-life insurance market remains mature and competitive, with demand for commercial lines coverages growing, supported by investments in high-technology manufacturing plants, renewable energy projects, and major infrastructure development. “While higher insurable exposures have led to growth in commercial premiums, rising competitive pressure may intensify and weigh modestly on underwriting margins as insurers compete for market share,” said Madison Fan, senior financial analyst, AM Best. “Nevertheless, a relatively benign catastrophe environment through 2025 and the first half of 2026 continued to support non-life segment earnings.”

Taiwan’s non-life insurers are increasingly using AI and data analytics to streamline underwriting, automate claims processing and detect fraud. These changes should enhance operating efficiency, refine risk selection and help insurers better manage losses over time.

“AI adoption among Taiwan’s non-life insurers is likely to remain gradual and tightly controlled, with insurers prioritising internal operational and risk management tasks while maintaining continued oversight over customer-facing decisions,” said James Chan, director, analytics, AM Best.

To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=368135.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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