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.