According to study, “Strategic Market Intelligence: General Insurance in Taiwan – 2017” some of the major companies that are currently working in the general insurance in Taiwan are Fubonlnsurance, Cathay Century Insurance, Shin Kong Fire & Marin, Mingtai Fire & Marine, Tokio Marine Newa, South China, Union – Taiwan, The Taian, Chung Kuo, The First.
General insurance is a non-life insurance policy, also called as property & casualty insurance. The value of the non-life insurance market is shown in terms of gross premium incomes. Gross premium income is defined as the insurer’s premium income for the year from its policies, calculated without reduction for reinsurance premiums paid or payable by the insurer. It enables to minimize the effect of unexpected and often unwelcome future events and helps to organize personal and business life with greater confidence. It covers properly against fire, burglary, theft, flood storm and earthquake. It also covers machinery against breakdown, motor vehicles against damages and hull of ships etc. It is important for many reasons: to get financial security, to get peace of mind against risk, to avoid burden of loss and to avoid accidents etc.
General insurance is classified in two types: commercial lines and personal lines. Commercial lines products are usually designed for relatively small legal entities: it includes public liability, product liability, commercial fleet and other general insurance products, which are sold in a relatively standard fashion to many organizations. Personal lines products are designed to be sold in large quantities: it includes autos, homeowners, pet insurance and creditor insurance etc.
Some of the major types of general insurance include car or auto insurance, liability insurance, marine insurance, fire insurance, health insurance, engineering insurance and burglary insurance. Car or auto insurance is a contract between user and the insurance company that protects against financial loss in the event of an accident or theft: it provides protection against third party liability and physical damages from fire, riots, flood, cyclones, burglary and theft etc. Liability insurance is purchased to protect an individual or a business: it covers legal pay-outs and costs for which the person insured is responsible. Marine insurance refers to coverage provided for the loss or even damage that has been caused to cargo, ships, terminals between their points of origin and final destination. Fire insurance covers any damage to property as a result of a fire. Health insurance offers a way to reduce such costs to more reasonable, affordable amounts. Engineering insurance provides coverage for damage to machinery, business interruption, stock deterioration, stock deterioration and computers & electronic equipment etc. additionally, burglary insurance provides financial compensation against loss or damage to property contained in premises by acts of burglary.
In Taiwan every citizen is covered for healthcare and medical treatment under the National Health Insurance (NHI) scheme. In this regard the Taiwanese healthcare system is being cited by many foreigners as exactly the right balance of private and public. In 2018, Taiwan launched the NHI initiative by integrating medical programs from existing insurance systems for laborers, farmers, and government employees, which covered only half the population. The NHI is a public program run by the government based on a single-payer model. In addition, the NHI’s information system has migrated to the cloud, making it much easier for hospitals, clinics, and doctors to access medical information. In 2017, the NHIA allocated NT$2.4 billion (US$82 million) for the expensive, highly effective oral hepatitis C medications, providing the drugs to some 9,300 people. In 2018,a total of NT$4.25 billion has been earmarked with the goal of helping an additional 17,000 patients. It is expected to drive the non life insurance market to a value of $19.9bn by the end of 2019. It is estimated that, Taiwan’s general insurance market will be increased instantly in upcoming years.
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Ankur Gupta, Head Marketing & Communications