With more and more competitors entering the market the past decade, the market shares of the largest domestic life insurers, Cathay Life (
According to Paribas Asia Security and the Life Insurance Association (
Shin Kong Life's market share has also dropped, from 20 percent to 14 percent today.
Together, the two insurers -- who have dominated the Taiwan market for the last four decades -- have seen their market shares in new policies drop from more than 60 percent to less than 40 percent in the last five years.
Meanwhile, the FYP market share of several foreign insurers has risen sharply, especially two US life insurers, Nan Shan Life (
Nan Shan Life, wholly-owned by American International Group, one of the largest life insurers in the US, has surpassed Shin Kong Life in the last two years to become the second largest FYP life insurer in Taiwan.
In the first quarter this year, it even exceeded Cathay Life in FYP, but failed to keep its lead in the remaining months.
But its 21 percent market share this year has brought heavy pressure for Cathay Life, industry executives said.
Aetna Life's market share in FYP has almost quadrupled from 3 percent to 11 percent in the last five years.
Several other newcomers have also seen their market share sharply increase recently.
Whether Prudential Assurance can successfully expand its market share in Taiwan from the No. 11 position created by its predecessor, Chinfon Life, has yet to be proven.
But the massive resources of its parent company should greatly help it to provide diversified financial products and services to local consumers.
Industry experts say Dominic Leung is a perfect candidate for Prudential Assurance to set up its marketing network in the highly competitive market.
With his previous experience in Nan Shan Life, Leung knows exactly what it takes to tackle the competition head-on.
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