Middle East Conflict Fuels Demand for War Risk Insurance, Driving Double-Digit Growth in Aviation and Marine Segments

Taiwan's non-life insurance sector has demonstrated resilience, with a notable 3.98% year-on-year growth in premiums for the first quarter, totaling NT$78.77 billion. This expansion is particularly significant given the prevailing global economic uncertainties.

The escalating conflict in the Middle East has directly impacted the insurance market, driving a surge in war risk premiums. Consequently, aviation and marine insurance segments have recorded double-digit growth compared to the same period last year. This trend underscores the heightened demand for coverage against geopolitical instability.

In the automotive insurance sector, premiums saw a 6.42% increase in the first quarter. While some consumers remain cautious due to ongoing trade uncertainties, particularly regarding US tariffs, aggressive promotional activities by car dealerships have stimulated sales and, by extension, demand for auto insurance.

Engineering insurance also showed robust performance, with a 7.16% increase in the first three months, despite a slight dip in March. This sustained growth is attributed to the government's continued investment in public infrastructure projects, ensuring a stable stream of premiums for this segment. Fire insurance, however, experienced a slight decline of 2.1% in the first quarter, with expectations of a stronger performance in the second quarter as larger contracts are renewed.