Taiwan Foreign Currency Life Policies Rise 39%

Int’l Insurance Desk: Taiwan’s life insurance industry continued its strong run in foreign-currency products through the end of July 2026, with new policy premiums rising 39 percent year on year to 330.9 billion New Taiwan dollars, equivalent to about 10.4 billion US dollars. That compared with 238.19 billion New Taiwan dollars, or roughly 7.5 billion US dollars, in the same period a year earlier. The figure marked a five-year high for the January-to-July window, according to data released by the Financial Supervisory Commission’s Insurance Bureau.

Traditional insurance products remained the mainstay, generating 265.01 billion New Taiwan dollars, or about 8.3 billion US dollars, and accounting for roughly 80 percent of the foreign-currency total. This segment grew 31 percent from 202.49 billion New Taiwan dollars the previous year. Investment-linked products posted far steeper growth of 85 percent, reaching 65.89 billion New Taiwan dollars, or 2.1 billion US dollars, and making up the remaining 20 percent of the market. Earlier in the year the investment-linked category had expanded even faster, more than doubling in the first five months.

US-dollar policies dominated the foreign-currency book, contributing the bulk of the volume. Cumulative new premiums in US dollars reached 102.69 billion dollars, up 38 percent. Within that, investment-linked US-dollar products rose 88 percent to 20.10 billion dollars, helped by new offerings developed jointly by insurers and bank partners. Traditional US-dollar products, including interest-sensitive and participating dividend policies, advanced 29 percent to 82.59 billion dollars. Other currencies such as the Australian dollar and renminbi played much smaller roles and faced softer demand linked to local economic conditions and exchange-rate uncertainty.

Despite the absolute growth, foreign-currency policies’ share of overall new business premiums slipped to 35.59 percent, the lowest level for the same period in eight years. Officials noted that local-currency products expanded even more rapidly, reflecting insurers’ efforts to meet domestic demand. July itself saw some cooling from June levels. Investment-linked sales slowed amid heightened global stock-market volatility, while traditional products faced a higher comparison base after strong June results tied to mid-year performance targets.

Leading writers of investment-linked foreign-currency policies included Cathay Life, Yuanta Life and Shin Kong Life. On the traditional side Fubon Life, Shin Kong Life and Taiwan Life topped the rankings. Industry observers pointed to the possibility that full-year foreign-currency premiums could approach or exceed 500 billion New Taiwan dollars if the pace holds, already representing close to 80 percent of the full-year 2025 total of about 419 billion New Taiwan dollars.

The Financial Supervisory Commission has repeatedly reminded consumers that foreign-currency policies carry exchange-rate risk. Benefits paid in foreign currency can lose value when converted back to New Taiwan dollars if the relevant currency weakens. Insurers are expected to assess clients’ risk tolerance carefully and ensure product suitability.