Taiwan’s insurance sector saw a 3.1% year-on-year (YoY) increase in combined pre-tax profits, reaching NT$60.5 billion ($1.82 billion) by the end of February 2025, according to data from the Insurance Bureau.
Bain & Company has called on insurers to modernize their operations as the industry faces several challenges, including talent shortages and evolving risks. While strong capital reserves and past trends like rate hikes in property and casualty (P&C) insurance and interest-driven annuity sales have supported growth, these factors are beginning to lose momentum.
According to Bain’s Bridging the Protection Gap: Affordability, Access, and Risk Prevention report, rising premiums, natural disasters, and growing cyber threats are straining profitability and accessibility, leaving significant protection gaps in property and life coverage. In P&C insurance, affordability is becoming a critical issue, with some regions facing “insurance deserts” where coverage is scarce. Meanwhile, life insurers are struggling to stay relevant, particularly among younger consumers, due to shifting savings habits and demographic changes.
Emerging risks such as climate change, cyberattacks, and autonomous vehicles are demanding new insurance products and innovative partnerships, including public-private risk-sharing models. Additionally, digital engagement, embedded insurance, and the adoption of artificial intelligence (AI) are transforming how insurers operate and interact with their customers.
The report also highlights the looming talent gap in the industry, as many seasoned professionals are nearing retirement. To remain competitive, insurers must modernize their operations, expand prevention services, adopt alternative capital strategies, and target underserved markets. Companies that adapt quickly will be best positioned for sustainable growth and a stronger societal impact in an increasingly risky world.
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