Taiwan Insurance Market Driven by Bancassurance: Ken Research

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TABLE OF CONTENTS
1. 1.1. 1.2. 1.3. Asia-Pacific Insurance Industry Industry Introduction Asia-Pacific Insurance Market Size by Direct Written Premium, 2005-2012P Asia-Pacific Insurance Market Segmentation

1.3.1. By Geography, 2005-2012P 1.3.2. By Life and Non Life, 2005-2012P 2. 2.1. 2.2. 3. 4. 4.1. 4.2. 4.3. 4.4. 4.5. 5. 5.1. 5.2. 5.3. 6. 6.1. Taiwan Insurance Industry Taiwan Insurance Value Chain Taiwan Insurance Market Size by Direct Written Premium, 2005-2012P Taiwan Insurance Government Regulations Taiwan Life Insurance Market Taiwan Life Insurance Market Size, 2005-2012P Life Insurance Segmentation, 2005-2012P Market Share of Major Life Insurers in Taiwan, 2011 Taiwan Life Insurance Distribution Channel, 2009-2011 Taiwan Life Insurance Market Future Outlook and Projection, 2013-2016 Taiwan Non-Life Insurance Market Taiwan Non-Life Insurance Market Size, 2005-2012P Market Share of Major Non Life Insurers in Taiwan, 2011 Taiwan Non-Life Insurance Market Future Outlook and Projection, 2013-2016 Non-Life Insurance Segmentation, 2005-2012P Taiwan Automobile Insurance Industry

6.1.1. Taiwan Automobile Insurance Market Size, 2005-2012P 6.1.2. Automobile Insurance Segmentation, 2005-2012P 6.1.3. Market Share of Major Automobile Insurers in Taiwan, 2011 2

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6.1.4. Taiwan Automobile insurance Market Future Outlook and Projection, 2013-2016 6.2. Taiwan Property and Casualty Insurance Industry

6.2.1. Taiwan Property and Casulaty Insurance Market Size, 2005-2012P 6.2.2. Property and Casualty Insurance Segmentation, 2005-2012P 6.2.3. Market Share of Major Property and Casulaty Insurers in Taiwan, 2011 6.2.4. Taiwan Property and Casualty insurance Market Future Outlook and Projection, 20132016 6.3. Taiwan Fire Insurance Industry

6.3.1. Taiwan Fire Insurance Market Size, 2005-2012P 6.3.2. Taiwan Fire Insurance Market Future Outlook and Projection, 2013-2016 6.4. Taiwan Marine Insurance Industry

6.4.1. Taiwan Marine Insurance Market Size, 2005-2012P 6.4.2. Marine Insurance Segmentation, 2005-2012P 6.4.3. Taiwan Marine insurance Market Future Outlook and Projection, 2013-2016 6.5. Taiwan Aviation Insurance Industry

6.5.1. Taiwan Aviation Insurance Market Size, 2005-2012P 6.5.2. Taiwan Aviation Insurance Market Future Outlook and Projection, 2013-2016 7. Taiwan Insurance Industry Trends and Developments

Emergence of New Distribution Channel Rising Merger, Acquisitions and Joint Venture Rising Affluent Middle Class Increasing Cyber Risk Insurance Need 8. 8.1. Asia-Pacific Insurance Industry Future Outlook Asia-Pacific Insurance Industry Future Projections

8.1.1. By Geography, 2013-2016 9. Taiwan Insurance Industry Future Projections, 2013-2016 3

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9.1. Cause and Effect Relationship Between Dependent and Independent Factors Prevailing in Taiwan Insurance Market 10. 10.1. Company Profile of Major Players in Taiwan Life Insurance Industry Cathay Life

10.1.1. Company Profile 10.1.2. Business Strategies 10.1.3. Financial Performance 10.2. Fubon Life

10.2.1. Company Profile 10.2.2. Business Strategies 10.2.3. Financial Performance 10.3. Nan Shan Life

10.3.1. Company Profile 10.3.2. Business Strategies 10.3.3. Financial Performance 11. 11.1. Company Profile of Major Players in Taiwan Non-Life Insurance Industry Shinkong Insurance

11.1.1. Company Profile 11.1.2. Business Strategies 11.1.3. Financial Performance 11.2. MSIG Mingtai Insurance

11.2.1. Company Profile 11.2.2. Business Strategies 11.2.3. Financial Performance 12. 12.1. Taiwan Insurance Industry Macro-Economic Indicators: Historical and Projections Taiwan Population, 2005-2016 4

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12.2. 12.3. 12.4. 13. 13.1. 13.2. 13.3.

GDP of Taiwan, 2005-2016 Healthcare Expenditure of Taiwan, 2005-2016 Total number of Vehicle in Use in Taiwan, 2005-2016 Appendix Market Definitions Abbreviations Research Methodology

Data Collection Methods Approach Variables (Dependent and Independent) Multi Factor Based Sensitivity Model Final Conclusion 13.4. Disclaimer

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LIST OF FIGURES
Figure 1: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 2: Asia-Pacific Insurance Market Segmentation by Life and non Life on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 3: Insurance Value Chain Figure 4: Taiwan Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 5: Taiwan Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 6: Taiwan life Insurance Market Segmentation by Life and Annuity on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 7: Market Share of Major Life Insurers on the Basis of Direct Written Premium in Percentage, 2011 Figure 8: Taiwan Life Insurance Distribution Channel by Banks, Solicitors and Others on the Basis of Direct Written Premium in Percentage, 2009-2011 Figure 9: Taiwan Non Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 10: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in Percentage, 2011 Figure 11: Taiwan Non life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 12: Taiwan Non life Insurance Market Segmentation by Health, Accident, Automobile, Fire, Marine, Aviation and Property and Casualty on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 13: Taiwan Automobile Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 14: Taiwan Automobile Insurance Market Segmentation by Voluntary and Compulsory Motor Liability Insurance on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 15: Market Share of Major Automobile Insurers on the Basis of Direct Written Premium in Percentage, 2011

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Figure 16: Taiwan Property and Casualty Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 17: Taiwan Property and Casualty Insurance Market Segmentation by Accident, Liability, Engineering, Credit, Health and Others on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 18: Market Share of Major Property and Casualty Insurers on the Basis of Direct Written Premium in Percentage, 2011 Figure 19: Taiwan Fire Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 20: Taiwan Fire Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 21: Taiwan Marine Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 22: Taiwan Marine Insurance Market Segmentation by Marine Cargo, Marine Hull and Fishing Vessel on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 23: Taiwan Aviation Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 24: Taiwan Aviation Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 25: Taiwan Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 26: Taiwan Life Insurance Premium Income of Cathay Life Insurance in USD Million, 2005-2011 Figure 27: Taiwan Life Insurance Premium Income of Fubon Life Insurance in USD Million, 2005-2011 Figure 28: Taiwan Life Insurance Premium Income of Nan Shan Life Insurance in USD Million, 2005-2011 Figure 29: Taiwan Non-Life Insurance Direct Written Premium of Shinkong Insurance in USD Million, 2005-2011 Figure 30: Taiwan Non-Life Insurance Direct Written Premium of MSIG Mingtai Insurance in USD Million, 2005-2011 Figure 31: Taiwan Population in Million, 2005-2016 Figure 32: GDP of Taiwan in USD Million, 2005-2016 7

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Figure 33: Healthcare Expenditure of Taiwan in USD Million, 2005-2016 Figure 34: Total Number of Vehicle in Use in Taiwan in Million, 2005-2016

LIST OF TABLES
Table 1: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005-2012P Table 2: Asia-Pacific Insurance Market Segmentation by Life and Non Life on the Basis of Direct Written Premium in USD Billion, 2005-2012P Table 3: Taiwan life Insurance Market Segmentation by Life and Annuity on the Basis of Direct Written Premium in USD Million, 2005-2011 Table 4: Market Share of Major Life Insurers on the Basis of Direct Written Premium in USD Million, 2011 Table 5: Taiwan Life Insurance Distribution Channel by Banks, Solicitors and Others on the Basis of Direct Written Premium in USD Million, 2009-2011 Table 6: Taiwan Life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 7: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in USD Million, 2011 Table 8: Taiwan Automobile Insurance Market Segmentation by Voluntary and Compulsory Motor Liability Insurance on the Basis of Direct Written Premium in USD Million, 2005-2012P Table 9: Market Share of Major Automobile Insurers on the Basis of Direct Written Premium in USD Million, 2011 Table 10: Taiwan Automobile Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 11: Taiwan Property and Casualty Insurance Market Segmentation by Accident, Liability, Engineering, Credit, Health and Others on the Basis of Direct Written Premium in USD Million, 2005-2012P Table 12: Market Share of Major Property and Casualty Insurers on the Basis of Direct Written Premium in USD Million, 2011

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Table 13: Taiwan Property and Casualty Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 14: Taiwan Marine Insurance Market Segmentation by Marine Cargo, Marine Hull and Fishing Vessel on the Basis of Direct Written Premium in USD Million, 2005-2012P Table 15: Taiwan Marine Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 16: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 17: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Taiwan Insurance Market Table 18: Correlation Matrix of Taiwan Insurance Industry Table 19: Regression Coefficients Output of Taiwan Insurance Industry

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ASIA-PACIFIC INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, 2005-2012P

The insurance market in Asia-Pacific region has grown remarkably over the past few years due to the growth in the emerging market such as China, Japan, India, Australia, Taiwan and South Korea. The countries in the Asia-Pacific region are at different stages of economic development unlike the European countries and the US which has created significant opportunities for the insurers in the region in order to serve the financial needs of the customers. The market in the region has grown at a CAGR of 11.9% from USD ~ million in 2005 to USD ~million in 2012… Figure: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P
16,00,000.0 14,00,000.0 12,00,000.0 USD Million 10,00,000.0 8,00,000.0 6,00,000.0 4,00,000.0 2,00,000.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012P

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ASIA-PACIFIC INSURANCE MARKET SEGMENTATION

BY GEOGRAPHY, 2005-2012P

Asia-Pacific insurance industry is majorly contributed by 6 major countries such as Japan, China, South Korea, Taiwan, India and Australia with the share of ~% in 2012. Japan insurance market is the second largest in the world with the contribution of more than ~% in 2012…. China insurance industry is one China insurance industry is one of of the predominant markets in the insurance industry in the the predominant markets in the insurance industry in the AsiaAsia-Pacific region with a contribution of ~% of the direct Pacific region with a contribution written premium in the region in 2012… South Korea is the third largest market with a contribution of ~% in 2012. The country insurance sector is more complicated with limited growth opportunities in comparison with the growing market in the region such as China and India… Table: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005-2012P
Countries Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia Indonesia 2005 2006 2007 2008 2009 2010 2011 2012P of ~% of the direct written premium in the region in 2012.

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New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total

TAIWAN INSURANCE INDUSTRY

TAIWAN INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, 2005-2012P
…In 2011, there were ~ insurance companies in Taiwan of which ~ were life insurance companies and ~ were non life insurance players. In ~ life insurance marketers, ~ were domestic companies while ~ were branches of foreign companies. The ~ general insurance companies include ~ domestic and ~ foreign companies... Figure: Taiwan Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P
80,000.0 70,000.0 60,000.0 USD Million 50,000.0 40,000.0 30,000.0 20,000.0 10,000.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012P

Note:-Life Insurance is in Premium Income; Non-Life Insurance is in Direct Written Premium

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TAIWAN LIFE INSURANCE MARKET

LIFE INSURANCE SEGMENTATION, 2005-2012P

….The country’s graying population has driven the growth of annuity insurance business while short term variable annuity have become of the most popular products in 2010. In 2010, the annuity insurance market has recorded direct written premium of USD ~ million with a spectacular growth of ~% over 2009. In 2011, the market has suffered a decline of ~% to USD ~ million on account of negative impact of surrender fee and decrease rate on short term variable annuities by Taiwan chief market regulator and Financial Supervisory Commission (FSC) in order to reduce the sales.

Figure: Taiwan life Insurance Market Segmentation by Life and Annuity on the Basis of Direct Written Premium in Percentage, 2005-2012P
1.2

1.0

0.8 In Percentage

0.6

0.4

0.2

0.0 2005 2006 2007 Annuity
Note:Life Insurance is in Premium Income

2008

2009

2010 Life

2011

2012P

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Table: Taiwan life Insurance Market Segmentation by Life and Annuity on the Basis of Direct Written Premium in USD Million, 2005-2011
Segments Life Annuity Total
Note:Life Insurance is in Premium Income

2005

2006

2007

2008

2009

2010

2011

2012P

MARKET SHARE OF MAJOR LIFE INSURERS IN TAIWAN, 2011

Taiwan life insurance industry is dominated by top 5 players such as Cathay life, Fubon life, Nan Shan Life, Chunghwa Post and Shin Kong life contribute around ~% in 2011. Cathay life is the leading life insurance player in the country with the share of ~% and the direct written premium of USD ~ million in 2011… Figure: Market Share of Major Life Insurers on the Basis of Direct Written Premium in Percentage, 2011

Cathey Life Fubon Life Nan Shan Life Chunghwa Post Shin Kong Life China Life MassMutual Mercuries Others

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Table: Market Share of Major Life Insurers on the Basis of Direct Written Premium in USD Million, 2011
Players Cathay Life Fubon Life Nan Shan Life Chunghwa Post Shin Kong Life China Life MassMutual Mercuries Others Total 2011

TAIWAN NON-LIFE INSURANCE MARKET

TAIWAN NON-LIFE INSURANCE MARKET SIZE, 2005-2012P

…In 2011, Taiwan general insurance industry has experienced a growth of ~% with the direct written premium of USD ~ million in 2011 in comparison to USD ~ million in 2010…

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Figure: Taiwan Non Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P
4,500.0 4,000.0 3,500.0 USD Million 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 500.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012P

TAIWAN AUTOMOBILE INSURANCE INDUSTRY

TAIWAN AUTOMOBILE INSURANCE MARKET SIZE, 2005-2012P

Taiwan automobile insurance industry is leading market in the general insurance industry with the share of ~% in 2012. The market has experienced a growth of ~% from USD ~ million in 2010 to USD ~ million in 2011 on account of rising sales of motor vehicles in the country. In 2011, Taiwan has witness a growth of ~% in the number of vehicles in use from ~ million in 2010 to ~ million in 2011...

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Figure: Taiwan Automobile Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P
2,500.0 2,000.0 USD Million 1,500.0 1,000.0 500.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012P

TAIWAN PROPERTY AND CASUALTY INSURANCE INDUSTRY

TAIWAN PROPERTY AND CASUALTY INSURANCE MARKET FUTURE OUTLOOK AND PROJECTION, 2013-2016

The property and casualty insurance industry in Taiwan is one of the growing markets with a CAGR of 7.3% from 2013-2016. The industry is expected to witness growth of ~% in 2012 over 2012 and is anticipated to record direct written premium of USD ~ million in 2013…. The country has experienced a slight increase in the population from ~ million in 2005 to ~ million in 2011 but this growth is mainly influenced by the longer national life expectancy. The birth rate of Taiwan has felled from ~ per 1,000 population in 2005 to ~ per 1,000 population in 2011. This has led the ageing population of the country to increase and is expected that the age over 65 population will account more than ~% of the population in 2020…

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Table: Taiwan Property and Casualty Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016
Segments Accident Liability Engineering Credit Health Others Total 2013 2014 2015 2016

ASIA-PACIFIC INSURANCE INDUSTRY FUTURE OUTLOOK

….Overall, the market of the Asia-Pacific insurance is expected to grow at a CAGR of 11.2% from 2013-2016. The market in the near future is expected to witness consolidation and higher competition level with the entrance of more global players in the market…

ASIA-PACIFIC INSURANCE INDUSTRY FUTURE PROJECTIONS

BY GEOGRAPHY, 2013-2016

The Asia-Pacific Insurance industry is expected to grow at a CAGR of 11.2% from 2013-2016 on account of rising population in the emerging market of Asia such as India and China. It is anticipated that the total direct written premium of the insurance products will increase to USD ~ million in 2016 from USD ~ million in 2012.

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Table: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016
Countries Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia Indonesia New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total 2013 2014 2015 2016

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TAIWAN INSURANCE INDUSTRY FUTURE PROJECTIONS, 2013-2016

Under the base case scenario analysis, Taiwan insurance market is expected to grow at a CAGR of 8.7% in the next four years and is predicted to record direct written premium of USD ~ million in 2016…. The conservative case scenario analysis assumes that the insurance market of the country is anticipated to grow at a marginal CAGR of 2.5% from 2013-2016 in comparison to the historical years… The best case scenario analysis predicts that the market will record a direct written premium of USD ~ million in 2016. The insurance market of Taiwan is also anticipated to grow at a CAGR of ~% from 2013-2016…. Figure: Taiwan Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016
1,40,000.0 1,20,000.0 1,00,000.0 USD Million 80,000.0 60,000.0 40,000.0 20,000.0 0.0 FY'2013 Worst Case FY'2014 Base Case FY'2015 FY'2016 Best Case

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CAUSE AND EFFECT RELATIONSHIP BETWEEN DEPENDENT AND INDEPENDENT FACTORS PREVAILING IN TAIWAN INSURANCE MARKET
Table: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Taiwan Insurance Market
Industry Factors Strict Government Regulations and Support Increasing Population Market Impact Comments  Cause:  Positive Effect:  Negative Effect:  Cause:  Effect: Increasing Consumer Spending Increasing number of catastrophe events  Cause:  Effect:  Cause:  Positive Effect:  Negative Effect:

DISCLAIMER

No part of this manual or any material appearing may be reproduced, stored in or transmitted on any other Web site without written permission of Ken Research and any payments of a specified fee. Requests to republish any material may be sent to us.

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