KUALA LUMPUR, Sept 3 (Bernama) -- Global credit rating agency, AM Best has maintained a stable outlook on Taiwan’s non-life insurance segment amid the implementation of Taiwan Insurance Solvency (TIS), IFRS 17, and consistent premium expansion across retail and commercial lines.
Also underpinning the stable outlook are non-life insurers’ conservative asset allocation and moderate equity exposure, which should help protect their overall profitability in the event domestic stock market volatility impacts the segment’s investment results.
According to the Best’s Market Segment Report, “Market Segment Outlook: Taiwan Non-Life Insurance”, implementation of TIS and IFRS 17 enhances cross-market comparability and elevates the strategic importance of capital management and earnings volatility analysis.
In a statement, AM Best said TIS has had a limited impact on the segment’s overall capitalisation, although market-risk capital requirements have increased moderately.
Meanwhile, 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 per cent at year-end 2025.
Taiwan’s non-life insurance market remains mature and competitive, with demand for commercial lines coverage growing, supported by investments in high-technology manufacturing plants, renewable energy projects, and major infrastructure development.
The credit rating agency added that Taiwan’s non-life insurers are increasingly using artificial intelligence (AI) and data analytics to streamline underwriting, automate claims processing and detect fraud.
“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 AM Best director of analytics, James Chan.
These changes should enhance operating efficiency, refine risk selection and help insurers better manage losses over time.
-- BERNAMA