After bringing subsidiary AIU Insurance Co (美國環球產險) under its wing earlier this month, AIG General Insurance (Taiwan) Co (友邦產險), the local unit of American International Group Inc, set a goal of becoming one of the top three non-life insurers in the market by 2012.
AIG Taiwan -- formerly known as Central Insurance Co (中央產險) -- merged into AIG in August last year and changed its name in June. AIG Taiwan and AIU's local arm formally merged into one entity on Oct. 1.
"This is a merger of strength to strength," Rudi Spaan, chairman of AIG Taiwan, told a press conference yesterday.
As of the end of last month, AIG Taiwan was the fifth-largest non-life insurance underwriter with a market share of about 6.5 percent, Spaan said.
The top four non-life insurers are Fubon Insurance Co (富邦產險), Mingtai Fire and Marine Insurance Co (明台產險), Shin Kong Insurance Co (新光產險) and Cathay Century Insurance Co (國泰世紀產險).
The strategic merger combines the strength of AIG Taiwan's comprehensive distribution network, AIU's innovative products and AIG's global resources, Spaan said.
AIG Taiwan now has 49 branches and communication offices nationwide and more than 1,200 employees. Rather than expanding the number of branches and employees, the insurer plans to enhance the efficiency of its manpower, combining its whole-range products, to reach its goals, Spaan said.
Average annual spending in non-life insurance in Taiwan is US$450 per capita, compared with US$600 per capita in South Korea, and US$1,350 per capita in Europe, he said, adding that the figures show there is still room to grow in the Taiwanese market.
Demand for commercial insurance also increased significantly over the past few years, a company statement said.
The number of investors filing compensation requests against enterprises surged from 81 in 2002 to 60,233 last year, AIG Taiwan said, citing statistics from the Securities and Futures Investors Protection Center (投資人保護中心). The amount of compensation requested from investors also rocketed from NT$29.5 million (US$904,963) to NT$22.86 billion during the period, statistics showed.
"We have no plan to steal customers from our competitors, but we will introduce products that other insurers don't have to expand the overall market," Spaan said.
After commanding nearly 45 percent of market share in directors' and officers' liability insurance, AIG Taiwan introduced the advanced "corporate guard premier" this month, and is on the way to providing financial liability insurance for financial institutions, product recall liability insurance and pollution liability insurance for Taiwanese manufacturers based here or in China, he said.
AIG Taiwan is now waiting for the okay from the Bureau of National Health Insurance to provide health insurance. Services are expected to be launched in the first quarter next year, Spaan said.
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