Spillover insurance policies sales last quarter expanded more than sixfold to NT$537 million (US$18.19 million) from NT$81 million a year earlier, as consumers sought to increase their health insurance coverage amid the COVID-19 pandemic, the Financial Supervisory Commission said on Tuesday.
In comparison, the first-year premiums (FYP) of all life insurance policies contracted 32.5 percent to NT$191 billion during the same period, according to data compiled by the Life Insurance Association.
Spillover insurance policies — named after the “spillover effect” that occurs when events in one sector affect those in another — spur consumers to improve their health in return for policy incentives such as premium cuts or bonuses.
A total of 30,953 policies were sold during the April-to-June period, compared with 5,512 a year earlier, commission data showed.
“Walker policies” — which give policyholders bonuses for implementing a walking regimen — continued to dominate the spillover insurance market, with a market share of 88 percent, followed by products offering rewards to insured whose performance in physical exams is good, the commission said.
A total of 24,630 walker policies were sold in the second quarter, generating NT$492 million in FYP, which suggested a considerable growth of 2,978 percent and 863 percent respectively from a year earlier, the data showed.
There were 22 available walker policies provided by seven insurers as of the end of June, compared with 11 offered by six insurers a year earlier, the data showed.
Average walker policy premiums were NT$18,521 among 40,016 products sold in the first half of the year, compared with NT$59,398 a year earlier.
By comparison, sales of policies with in-kind benefits declined 39 percent to NT$10.47 million in the first six months, as one major offering — Cathay Life Insurance Co’s (國泰人壽) travel insurance with air ambulance service and reimbursement of medical expenses — was hindered by the grounding of planes amid the pandemic, the commission said.
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