Taiwan Online Property & Casualty Insurance Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Taiwan online Property & Casualty insurance market insurance market is expected to reach a valuation of US$ 1,627.71 Mn by 2030 from US$ 918.1 million in 2022 at a CAGR of 7.42% over the forecast period 2023–2030. 

In order to meet the increasing demands of clients, insurers have been modernizing their business processes with digital technology. The use of artificial intelligence, predictive analytics, live chat, machine learning, and other digital technologies has become a crucial driver for insurers in the online P&C insurance market to remain competitive and provide the best services for the needs of their consumers.

One major challenge faced by insurers is the rapid pace of technological change, which requires them to constantly adapt and update their systems in order to stay ahead of the curve. Additionally, there is an increasing pressure to provide personalized and efficient services to consumers, which can only be achieved through the use of advanced technologies such as AI and machine learning.

Statistics show that the global insurance technology market is expected to reach $143 billion by 2026, growing at a CAGR of 18.5% during the forecast period. This growth is driven by the increasing adoption of digital technologies by insurers and the growing need for personalized and efficient services.

In the Taiwanese market, the Financial Supervisory Commission (FSC) is granting licenses to online insurance companies, with the goal of accelerating the industry's digital transition. This move is expected to further drive the adoption of digital technologies in the insurance sector, leading to improved services and increased competition in the market. 

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MARKET DYNAMICS

Drivers

Favorable government policies for insurance

Regulations and laws that support P&C insurance policies have created a favorable environment for the industry to thrive in the Taiwan online P&C insurance market. Nearly half of the insurance business in Taiwan is governed by the Financial Supervisory Commission (FSC), which plays a vital role in filling coverage gaps left by private insurers.

Government policies have led to an uptick in liability, agriculture, credit, and guarantee products. Additionally, the government has been actively pushing to increase coverage in crop insurance products, which is expected to further drive the market growth.

The government has also passed legislation to safeguard insurance buyers, including Unfair Trade Practices Acts and Unfair Claims Practices Acts. These laws forbid coercion of customers during the sales process and extend claimants' protections, which helps to build trust and confidence among consumers towards the insurance industry.

Overall, the supportive government policies and regulations have created a favorable environment for the Taiwan online P&C insurance market to grow and evolve. Insurers operating in this market have the opportunity to capitalize on these policies and offer a range of products and services to meet the diverse needs of consumers. 

Following are Some of the Key Drivers of the Taiwan Online P&C Insurance Market 

• Advancements in technology: The use of artificial intelligence, predictive analytics, live chat, machine learning, and other digital technologies has become crucial for insurers to remain competitive in the market and provide the best services for the needs of their consumers.
• Growing consumer demand for personalized and efficient services: Consumers are increasingly demanding personalized and efficient services, which can only be achieved through the use of advanced technologies such as AI and machine learning.
• Increasing awareness and understanding of online insurance options: As consumers become more familiar with the option of purchasing insurance online, more people are expected to turn to the internet to make their purchases.

Challenges

• Lack of awareness and understanding of online insurance options: Many consumers in Taiwan are still not familiar with the option of purchasing insurance online, which can be a major challenge for insurers looking to expand their online presence in Taiwan online P&C insurance market.
• Limited digital capabilities: Many insurers in Taiwan still lack the digital capabilities required to fully leverage the opportunities presented by the online market.
• Cybersecurity concerns: As the industry becomes increasingly digital, cybersecurity concerns become more prevalent, which can make consumers hesitant to purchase insurance online.
• Regulatory and legal challenges: The insurance industry is heavily regulated, and navigating the complex regulatory environment can be a major challenge for insurers.
• Limited data privacy: Taiwan consumers are highly sensitive to data privacy and security, so it is important for insurers to have a robust data security strategy in place to protect customer information.
• Difficulty in building trust and confidence among consumers: Insurance is a trust-based industry, and building trust and confidence among consumers is crucial for the success of online insurance products.

Trends

Advancement in Insurance Sector

The Taiwan online P&C insurance market is experiencing a significant shift as a result of advancements in technology. Insurers, brokers, and agents are leveraging these innovations to enhance their service offerings and increase revenues. The integration of technologies such as blockchain, microservices, cloud-based software, artificial intelligence, and more, are transforming the way the property and casualty insurance sector operates. 

These advancements are enabling companies to streamline their processes, improve customer experience, and provide personalized products and services. This technological revolution is expected to continue shaping the industry, driving growth and competitiveness in the Taiwan online P&C insurance market.

Market Segmentation

Type 

The Taiwan online P&C insurance market is segmented into various types such as property insurance, automotive insurance, marine insurance, engineering insurance, aviation insurance, accident insurance, fire insurance, and others. In 2022, the automotive insurance segment held the largest market share worth US$ 482.59 Mn, driven by a rise in premium prices and a rapid increase in vehicle sales. 

Additionally, the fire insurance segment is expected to witness the highest growth rate at a CAGR of 10.14%. This is attributed to Taiwan's high risk of earthquakes, which has led to a greater demand for fire insurance policies that automatically include coverage for earthquakes. The property insurance segment held 9.17% a market share in 2022 mainly driven by increased activity in the manufacturing, construction, and real estate industries, as well as an increase in natural hazard insurance premium rates. 

The market is forecast to continue its growth trajectory in the forecast period as technology advancements and customer demands drive the industry towards innovation and expansion.

Coverage Term 

The Taiwan online P&C insurance market is segmented by coverage term, with options ranging from one-year to more than five-year policies. In 2022, the one-year coverage segment dominated the market, accounting for 65% of the overall market share. This segment is also expected to experience the highest growth rate, with a CAGR of 7.92% during the forecast period. The preference for short-term coverage plans can be attributed to the cost-effectiveness and flexibility they offer in the Taiwan market. Many consumers prefer to keep their financial assets available for unforeseen emergencies, rather than committing to long-term plans. Additionally, the rise of digital platforms and mobile devices has made it easier for consumers to access and compare insurance policies, leading to a higher adoption of short-term coverage plans.

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Distribution Channel 

The Taiwan online P&C insurance market is segmented by distribution channel, with options including insurance company webpages, banks, and brokers/financial advisors. The insurance company webpages segment is the leading distribution channel, accounting for 47% of the overall market share in 2022. 

This segment is also expected to experience the highest growth rate, with a CAGR of 8.43% over the forecast period. Additionally, the brokers/financial advisors’ segment is expected to reach US$ 618.5 million by 2030, as consumers are increasingly turning to financial advisors for assistance with a wide range of financial products, including online insurance policies. This trend is driven by the desire for personalized service and guidance in making informed insurance decisions.

End Users 

The Taiwan online P&C insurance market is segmented by end user, with options including individuals and businesses. The individuals segment is the leading end user, accounting for 66% of the overall market share in 2022. This segment is also expected to experience significant growth, with a CAGR of 7.91% over the forecast period. 

The growing consumers’ adoption of online P&C insurance market in Taiwan can be attributed to the COVID-19 pandemic, which has resulted in a shift in consumer behavior. As a result of lockdowns and other restrictions, consumers have increasingly turned to e-commerce platforms to access a wide range of products and services, including insurance. This trend is expected to continue in the coming years as more consumers become accustomed to the convenience and ease of purchasing insurance online.

Top Players in Taiwan Online Property & Casualty Insurance Market:

Top 4 companies namely Fubon Insurance Co Ltd, Hotai Motor, The Taiping Insurance Co., Ltd, and Shin Kong Fire & Marine Insurance Co. Ltd are responsible for generating over 40% of the market revenue. 

List of Key Companies Profiled:

• AIU Insurance Company
• Asia Insurance Co., Ltd.
• BIDV Insurance Corporation
• Cathay Century Insurance Co Ltd.
• Chung Kuo.
• Mitsui Sumitomo Insurance Co., Ltd.
• Fubon Insurance Co., Ltd
• Hotai Motor
• Shin Kong Fire & Marine Insurance Co., Ltd.
• HUA NAN FINANCIAL HOLDINGS CO., LTD.
• Taian Insurance Co., Ltd
• Taiwan Fire & Marine Insurance Co., Ltd.
• PCA Assurance Co., Ltd.
• The Taiping Insurance Co., Ltd.
• Tokio Marine Newa Insurance Co., Ltd
• Union Insurance
• Zurich Insurance (Taiwan) Ltd.
• 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 P&C insurance market is sub-segmented into:

By type segment, the Taiwan online Property & Casualty insurance market is sub-segmented into: 

• Property Insurance
• Automotive Insurance
• Marine Insurance
• Engineering Insurance
• Aviation Insurance
• Accident Insurance
• Fire Insurance
• Others

By coverage term, the Taiwan online Property & Casualty insurance market is sub-segmented into: 

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

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

• Insurance Company Webpages
• Bank
• Brokers/ Financial Advisors

By end users segment, the Taiwan online Property & Casualty insurance market is sub-segmented into: 

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