Financial Troubles Forcing Life Insurers to Leave Taiwan

Financial troubles plaguing their parent groups and the worsening negative interest rate differentials have forced foreign life insurance firms to withdraw from the Taiwan market since the start of the year, reports The China Post, citing a top executive with Fitch Ratings.

 

Speaking to the Post, Lee Chia-hsin, senior vice president of Fitch, says that foreign life insurers such as ING (Internationale Nederlanden Groep N.V.), PCA, Aegon Insurance Group and Nan Shan Life Insurance have sold off their branch offices in Taiwan for two major reasons: parent groups suffering financial predicaments, and the worsening negative interest differential.

 

Lee told the Post that an effective way for life insurance firms to expand its market share in Taiwan is to acquire other life insurers. Fubon Life Assurance, for instance, saw its share of the domestic life insurance market double to 14% after acquiring the ING life insurance arm on the island, Lee told the Post.

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