Non-Life Insurance Industry's Premiums Expected to Exceed NT$30 Billion This Year; Federation Leader Chen Wan-hsiang Champions Loss Prevention

Taiwan's non-life insurance industry achieved around NT$188.2 billion in written premiums during the first seven months of this year, representing a 6.26% year-on-year growth. On August 20, Chen Wan-hsiang, chairman of the Non-Life Insurance Association, stated at a press conference that this year’s total written premiums are expected to grow by over 5% compared to last year’s NT$285.6 billion, making it highly probable that annual premiums will exceed NT$300 billion—setting a new historical high. He emphasized that as performance improves, the industry should fully leverage its core roles in insurance protection and loss prevention to fulfill its social responsibilities.

Chen explained that non-life insurers do not sell savings-type policies; instead, they offer pure protection products. He likened the concept of 'loss prevention' to the 'spillover policies' recently promoted by life insurers—where healthier policyholders reduce claim losses for insurers, benefiting individuals. In contrast, non-life insurance's loss prevention has traditionally focused on corporate clients.

According to Chen, loss prevention initiatives now extend beyond corporations, with some member companies introducing vehicle insurance loss prevention or individual-focused programs. The association submitted a 'Loss Prevention Promotion Plan Draft' to the Financial Supervisory Commission (FSC) Insurance Bureau on July 21, encompassing both individual and corporate loss prevention measures. The goal is to transform the role of insurers from 'passive post-event financial compensation' to 'active pre- and mid-event risk prevention.' The Insurance Bureau has already provided regulatory feedback, and once documentation adjustments are complete, the association will schedule another presentation to the FSC.

Chen stressed that loss prevention is not limited to commercial insurance—there is significant potential in personal insurance as well. With emerging risks arising from climate change and energy transition, he noted that wherever risk points exist, loss prevention can be applied. As an example of individual-level prevention, he highlighted Taiwan's super-aging society and the growing number of elderly drivers: 'What are the needs of older drivers?' He also pointed to recurring food safety issues, asking, 'Wouldn’t it be better if these could be prevented in advance?' Regarding residential safety, although Taiwan has over 9 million households, only about 40% are covered by the 'Residential Fire and Earthquake Basic Insurance.' Promoting loss prevention awareness could help boost insurance penetration.

On August 20, the Non-Life Insurance Association held its 10th term, 2nd general meeting. Former Nan Shan Insurance CEO Lin Yi-hsiao stepped down on October 1 of the previous year, assuming a senior vice president role in Nan Shan Life’s business channel, which led to his resignation from the association’s supervisory board, reducing the number of supervisors from five to four. During today’s by-election, Sun Wei-wen, who joined Nan Shan Insurance as CEO on January 9 after transferring from Tokio Marine & Nichido Fire Insurance, was elected as the new supervisor.

In his opening remarks at the general meeting, Chen announced that the day also marks the official launch of the association’s Loss Prevention Promotion Task Force. At the press conference, he elaborated that all member companies—including those with special operations like Coface and Euler Hermes—are participating in the task force. He, along with Hua Nan Insurance Chairman Tu Chih-chi (who also chairs the Underwriting Society) and Chung Yuan Reinsurance Chairman Chung Chih-hung, serve as advisory leaders. 'We hope the entire industry joins us,' he said. 'By uniting, we can raise external awareness and appreciation of property insurance’s loss prevention role, while also gaining broader support from other institutions so that insurance can play a more active part in society.'

Chen emphasized that loss prevention strengthens communication and bridges the gap between policyholders and insurers. He noted that many loss prevention frameworks are built upon regulations set by industrial or fire authorities, but these rules are often established without considering insurance perspectives. As a result, even when enterprises comply with fire codes, they may still face difficulties obtaining insurance coverage.

Using warehousing as an example, Chen explained that warehouses prioritize ventilation and typically avoid physical partitions. However, non-life insurers dislike such designs because strong air circulation can accelerate fire spread. 'Different stakeholders focus on different priorities—what warehouse operators consider optimal might be exactly what insurers worry about most. Communication is essential.'

Moreover, many modern warehouses—especially those near Taoyuan Airport—can reach several dozen meters in height, causing sprinkler water to evaporate into mist before reaching the ground. Therefore, insurers have specific requirements regarding water volume and spray density, which may not be reflected in current fire regulations. 'Otherwise, corporate clients might say, “We meet Taiwan’s fire safety codes,” yet insurers remain unwilling to underwrite—that’s a challenge we must address through dialogue,' Chen said. He hopes the establishment of the association’s loss prevention task force will encourage more businesses to adopt preventive mechanisms.

Wang Li-hui, Director of the FSC Insurance Bureau, who attended the association’s general meeting, praised loss prevention as a key strength through which the non-life insurance industry can assist society. She encouraged systematic advancement and expressed hope that when conditions mature, Chen Wan-hsiang would lead a delegation to present to the FSC, allowing Chairperson Peng Jin-long to gain deeper understanding.

Wang added that 'lifespan financial inclusion' is a major FSC policy. The concept of insurance has evolved from post-event claims to pre-event prevention, and the association’s push for loss prevention exemplifies this shift. The Insurance Bureau aims to establish a Lifespan Financial Inclusion Workshop jointly with the Insurance Development Center, the Non-Life Insurance Association, and the Life Insurance Association to regularly discuss and promote innovations, regulatory relaxation, and cross-ministerial collaboration.