Foreign Currency Insurance New Premiums Hit 148.9 Billion TWD in Q1, a 4-Year High

Central News Agency (Taipei, 26th) Statistics from the Financial Supervisory Commission (FSC) show that new contract premiums for foreign currency-denominated insurance in the life insurance sector reached approximately 148.996 billion TWD as of the end of March this year, marking a four-year high since 2023. The FSC stated that the launch of USD-denominated dividend and interest-sensitive policies by life insurers has boosted demand, driving an increase in traditional USD-denominated policies compared to the same period last year.

The FSC announced that foreign currency insurance accounted for 40.46% of total new contract premiums in the first three months of this year, the highest level for the same period in the last two years.

Tsai Huo-yen, Deputy Director-General of the Insurance Bureau at the FSC, stated that foreign currency investment-linked insurance reached approximately 23.936 billion TWD in the first quarter, a year-on-year growth of 54%. This was primarily driven by USD-denominated investment-linked policies, as collaborations between life insurers and banking channels to launch new products boosted performance.

Traditional foreign currency policies reached approximately 125.06 billion TWD in the first quarter, a 49% increase year-on-year. Tsai pointed out that the increase in traditional USD policies is mainly due to insurers launching dividend and interest-sensitive products, which stimulated buying interest.

The FSC reminded the public that all payments and receipts related to foreign currency policies—including premiums, benefits, policy loans, and fees—are conducted in foreign currency. When beneficiaries receive insurance payouts in the future, they may face exchange rate losses if the currency in which the policy is denominated depreciates against the New Taiwan Dollar. The FSC advises the public to pay close attention to exchange rate risks and consider whether they have future needs for foreign currency when purchasing such policies.