Mon, Jul 13, 2009 - Page 12 News List

Insurers see decline in premium income from sales of investment-linked products

STAFF WRITER

Hit by the financial crisis, premium income from sales of investment-linked insurance products in the first five months of the year fell 69 percent year-on-year to NT$91.4 billion (US$2.8 billion), the Life Insurance Association of the Republic of China said yesterday.

That included first-year premium income on investment-linked products, which fell 84.1 percent year-on-year to NT$38.3 billion over the same period, the association said in a statement.

Total premium income from sales of traditional insurance policies were not hurt by the financial crisis, however, and did better than expected. The total grew 19.7 percent to NT$668.6 billion.

First-year premium income from traditional policies grew 66.6 percent to NT$287.3 billion.

Domestic insurance policyholders continued to avert risk and preferred principal-guaranteed insurance products and policies, the association said.

With the decline in investment-linked insurance policies, the nation’s total insurance premiums fell 11 percent year-on-year to NT$760 billion.

It remains to be seen if sales of investment-linked insurance products will pick up after the stock market’s recent rally, the association said.

This story has been viewed 1548 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top