By Kao Shih-ching / Workers reporter
First-year premiums (FYPs) of foreign-currency insurance coverage insurance policies in April have been NT$27.1 billion (US$914.three million), the bottom up to now six months, because the COVID-19 pandemic affected insurers’ gross sales actions, information launched on Tuesday by the Monetary Supervisory Fee confirmed.
The FYP represented a 45 p.c plunge from a 12 months earlier and was bigger than a 13 p.c annual decline within the first quarter, which the fee attributed to a 58.eight p.c retreat in gross sales of investment-linked foreign-currency insurance coverage insurance policies to NT$6.three billion and a decline of 38 p.c in gross sales of conventional foreign-currency insurance coverage merchandise to NT$20.eight billion.
Though shoppers in April have been nonetheless involved in shopping for US dollar-denominated insurance coverage merchandise due to the cheaper dollar in opposition to the New Taiwan greenback, foreign-currency insurance coverage insurance policies normally noticed weaker momentum as insurers couldn’t maintain common advertising and marketing occasions amid the pandemic, a fee official mentioned on Wednesday.
Insurers are inclined to depend on face-to-face buyer visits to introduce foreign-currency insurance coverage insurance policies, that are extra difficult than NT greenback merchandise and contain foreign-exchange threat, the official mentioned.
General, cumulative FYPs of foreign-currency insurance coverage insurance policies decreased 21 p.c yearly to NT$160.2 billion throughout the January-to-April interval, a smaller decline than a 41 p.c drop in FYPs of all life insurance coverage insurance policies to NT$268 billion throughout the identical interval, information confirmed.
That was as a result of declared rates of interest of foreign-currency merchandise — which decide the bonuses that policyholders obtain — have been nonetheless greater than these supplied by the NT greenback insurance coverage merchandise, the official mentioned.
For instance, US greenback merchandise’ declared rates of interest remained above three p.c, whereas the charges of NT greenback merchandise have been at about 2 p.c.
FYPs of US greenback insurance policies totaled US$5 billion within the first 4 months, down 11 p.c from a 12 months earlier, whereas these of yuan-denominated insurance policies shrank 77 p.c to 562 million yuan (US$79.four million) and Australian greenback insurance policies fell 42 p.c to A$230 million (US$158 million) over the identical interval, information confirmed.
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