Taiwan Online Automotive Insurance Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Market Scenario

The Taiwan online automotive insurance market is expected to reach a valuation of US$ 751.5 Mn by 2030 from US$ 482.6 Mn in 2022, at an estimated CAGR of 5.7% during the forecast period, 2023-2030.

As the automotive industry in Taiwan continues to grow, so too does the demand for online insurance companies. Taiwan has a booming economy and a rapidly growing middle class, both of which contribute to the increasing demand for online insurance. 

There are several reasons why Taiwanese consumers are increasingly turning to online insurers. Firstly, it is convenient and easy to compare rates and coverage options from the comfort of one’s own home. Secondly, online insurers often offer lower rates than traditional insurers. And finally, many online insurers offer additional perks and benefits that appeal to Taiwanese consumers, such as cashback or rewards points. The growing demand for online automotive insurance in Taiwan is good news for insurers operating in the country. With more and more consumers turning to the internet to purchase insurance, there is a tremendous opportunity for growth in the Taiwanese market. 

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MARKET DYNAMICS

Drivers

The Taiwanese automotive online insurance industry is growing rapidly due to a number of factors. The following are some of the top reasons why this industry is seeing such high demand: 

1. The population of Taiwan is getting older and more affluent. This is resulting in more people owning cars and needing insurance for them.
2. The number of cars on the road in Taiwan is increasing at a rapid rate. This is putting pressure on the insurance industry to grow in order to meet the demand.
3. The Taiwanese government has been encouraging the use of online insurance services in order to make the process more convenient for consumers.
4. Taiwan has a very developed internet infrastructure, making it easy for people to access online insurance services.
5. There are a number of reputable online insurance providers operating in Taiwan, giving consumers a wide range of choices.

Restraints

Exit of Global Insurers from Taiwanese Automotive Insurance Market 

The Taiwan online automotive insurance market is facing a significant challenge as global insurers are exiting the market due to the strict regulatory environment imposed by the Financial Supervisory Commission (FSC). The FSC's strict approach to regulating the insurance business has led to the potential sale of large life insurance businesses and has created an uncertain environment for foreign players looking to enter the Taiwanese market.

However, despite these challenges, the Taiwan online automotive insurance market still holds significant potential for growth. The increasing adoption of technology and digitalization in the insurance sector has led to a growing demand for online insurance products, including automotive insurance. Additionally, the Taiwan market has a large and rapidly growing middle class with a high disposable income, which presents a significant opportunity for businesses to tap into.

To capitalize on this potential, businesses should focus on developing innovative and cost-effective online insurance products to meet the specific needs of the Taiwanese market. They should also consider partnering with local companies to navigate the regulatory environment and gain a better understanding of the local market.

Furthermore, it's recommended for the FSC to review its stringent policies and regulations to create a more favorable environment for foreign players to enter the market, this can be done by creating a level playing field for domestic and foreign players and make sure regulations are in line with international standards. This will help to attract more foreign players to the market, increase competition and ultimately benefit the consumer with more options and better pricing.

Trends

AI in Insurance

AI is revolutionizing the online automotive insurance market. The integration of AI technology is transforming the traditional methods of insurance operations, making the process faster, more efficient and accurate. The use of AI in insurance is currently a trend in the market, it has the ability to automate various tasks such as claims processing, underwriting, fraud detection, and customer service. 

This shift towards AI-powered insurance solutions is expected to bring significant benefits to both the insurers and policyholders. Insurers can expect to see cost savings, improved risk management, and increased customer satisfaction. Policyholders, on the other hand, can expect faster claims processing and personalized service. Businesses that want to stay competitive in this market should consider investing in AI technology to improve their operations and offer better products and services to their customers."

Market Segmentation

Risk Coverage Analysis

Based on risk coverage segment, the market is segmented into liability coverage, collision coverage, personal injury coverage, uninsured motorist coverage, comprehensive coverage and add-ons. The liability coverage segment dominated the market in 2022 and generated a revenue of US$ 190.1 million. On the other hand, the add-ons segment is projected to grow at the highest CAGR of 7.1% during the forecast period. 

The rising demand for personal vehicles in Taiwan are compelling the car owners to purchase the automotive insurance in order to maintain road safety. The increasing traffic-related deaths each year is further propelling the market demand of liability coverage for automobiles and the demand for add-ons risk coverage during the period of 2022-2030.

Coverage Term Analysis

On the basis of coverage term, the Taiwan online automotive insurance market is classified into 1 year, 3 years, 5 years, and more than 5 years. In 2022, the one-year segment accounted for over 74% of the market share due to the high sales volume of vehicles across the nations and rising incidences of traffic accidents. Mostly insurance contracts such as one-year automobile insurance policy, may become effective any day of the year and expire after 12 months.

Distribution Channel Analysis

The Taiwan online automotive insurance market is segmented into different distribution channels, including bank, brokers/others, and insurance company webpages. According to the latest market data, the brokers segment dominates with a market share of 63.1% in 2022, driven by its ease of comparison and selection of insurance and quick availability of information. Additionally, the insurance company webpages segment is growing at a CAGR of 6.2% over the forecast period.

This trend is driven by the increasing awareness of direct contact or purchase of insurance contracts among customers, as they are able to directly buy insurance for their vehicles online. As a result, insurance companies are focusing on strengthening their online sales channels and digital marketing strategies to cater to this growing demand.

For insurance companies looking to gain a foothold in the Taiwan online automotive insurance market, it's essential to have a strong digital presence and to offer a user-friendly online platform for customers to purchase insurance. Additionally, they may consider partnering with brokers to reach a wider customer base and offer bundled insurance packages to increase customer retention and cross-selling opportunities.

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Vehicle Type Analysis

By vehicle type, the Taiwan online automotive insurance market is classified into ICE vehicles, electric vehicles and hybrid. With 73% revenue share in 2022, the ICE Vehicles segment dominated the market. Moreover, due to its high rates of urbanization and population density, Taiwan has become an ideal nation for electric vehicles (EV). Electric vehicles segment is growing with a highest CAGR of 11.9% over the forecast period due to increase in adoption across the region.

Vehicle Application Analysis

In terms of vehicle application, the market is segmented into personal, commercial and off-road Vehicles. The personal segment dominated the market in 2022 and generated a revenue of $325.6 Mn. Taiwan has the highest scooter density in the world as a part of cultural heritage coupled with the excellent two-wheeler infrastructure, which makes the largest share over the forecast period. Furthermore, the off-road driving and motorcycling are popular activities among certain outdoor enthusiasts in Taiwan due to which the demand for online insurance for off-road vehicles are anticipated to grow with the highest CAGR of 6.7% during 2023-2030.

Vehicle Ownership Analysis

On the basis of vehicle ownership, the market is segmented into new vehicles and used vehicles. Used vehicles segment holds major share in the online automotive insurance market due to increasing fleet size of personal cars as well as awareness for timely maintenance and insurance of the vehicles. Whereas, the new vehicles segment is projected to grow at the highest CAGR of 7.5% during the forecast period. 

End Users Analysis

In terms of end users, the market is bifurcated into individuals and businesses. The individuals segment held the highest share of 70% in 2022 and is growing at a CAGR of 5.9% during the forecast period. The individual’s segment was valued at US$350.2 million in 2022. The demand for personal vehicles includes personal, commercial and off-road vehicles that witnessed an increase over the past few years which in turn driving the demand by Taiwanese individuals.

Key Industry Players:

Fubon Insurance Co Ltd, Cathay Century Insurance Co Ltd, Mitsui Sumitomo Insurance Co., Ltd., and Tokio Marine Newa generates over 48% revenue of the Taiwan online automotive insurance market.

Other players in the Taiwan online automotive insurance market include BIDV Insurance Corporation, Chung Kuo Insurance Co. Ltd., Ho Tai Motor, Shin Kong Fire & Marine Insurance Co. Ltd, South China Insurance Co Ltd, Taian Insurance Co. Ltd. and Union Insurance among others. 

List of Key Companies Profiled:

• BIDV Insurance Corporation
• Cathay Century Insurance Co Ltd
• Chung Kuo Insurance Co. Ltd.
• Fubon Insurance Co Ltd.
• Ho Tai Motor Co. Ltd.
• Mitsui Sumitomo Insurance Co., Ltd.
• Shin Kong Fire & Marine Insurance Co. Ltd.
• South China Insurance Co Ltd.
• Taian Insurance Co. Ltd.
• Tokio Marine Newa
• Union Insurance
• Other Prominent Players

Segmentation Overview

(Note*: We also provide granular level reports, made to sub-segment level or only for niche segments. Contact us, if you require more details.)

The Taiwan online automotive insurance market is sub-segmented into:

By risk coverage segment, the Taiwan online automotive insurance market is sub-segmented into: 

• Liability Coverage
• Collision Coverage
• Personal Injury Coverage
• Uninsured Motorist Coverage
• Comprehensive Coverage
• Add-ons
• Road-side assistance
• Engine replacement
• Nil Depreciation

By coverage term, the Taiwan online automotive insurance market is sub-segmented into: 

• One year
• 3 Years
• 5 Years
• More than 5 years

By distribution channel segment, the Taiwan online automotive insurance market is sub-segmented into: 

• Bank
• Brokers/Others
• Insurance Company Webpages

By vehicle type segment, the Taiwan online automotive insurance market is sub-segmented into: 

• ICE Vehicles
• Petrol
• Diesel
• Other
• Electric Vehicles
• Hybrid

By vehicle application segment, the Taiwan online automotive insurance market is sub-segmented into: 

• Personal
• 2 Wheelers
• 4 Wheelers
• Commercial
• Passenger
• Heavy Vehicles
• Off-road Vehicles

By vehicle ownership segment, the Taiwan online automotive insurance market is sub-segmented into: 

• New Vehicles
• Used Vehicles

By end user segment, the Taiwan online automotive insurance market is sub-segmented into: 

• Individuals
• Businesses
• Enterprise
• Logistics
• Retail
• Education
• Energy & Mining
• Construction
• Others