Automobile-to-General Insurance Payout Tops 50% in Taiwan

Taipei, Aug.21, 2012 (CENS)--Non-life or general insurers in Taiwan saw compensation or payout total over NT$29.5 billion (US$983.3 million) in the first half, up about 10% year on year (YoY) for a new high since 2008, said the Taiwan Insurance Institute (TII), with payout of voluntary automobile insurance accounting for 42% of the said figure at NT$12.5 billion (US$416.67 million).

With NT$4.46 billion (US$148.67 million) compensation paid by compulsory automobile liability insurance, car insurance totally accounted for over 50% of total non-life insurance payout, said an industry source.

Countering rising automobile insurance compensation, Taiwan’s non-life insurers have started to increase premiums on voluntary automobile insurance. Fubon Financial and Cathay Century Insurance have increased such premiums 15% in the first quarter, followed by other insurers including Mingtai Insurance Co., Taian Insurance Co., The First Insure Co., TLG Insurance Co., and Shinkong Insurance Co.

In the first half, Fubon paid NT$3.34 billion (US$111.33 million) in automobile insurance compensation, with Cathay and Shinkong both paying NT$1.87 billion (US$62.3 million), and Tokio Marine Newa Insurance Co. with NT$1.73 billion (US$57.67 million).

Automobile insurers saw combined voluntary automobile insurance and compulsory automobile liability insurance payouts hit NT$31.4 billion (US$1.05 billion) last year, and NT$29.5 billion (US$983.3 million) in the first half, said an industry source. Such compensation this year will likely exceed last year’s, driven by usually higher payout in the second half.