New Delhi, Jan. 20, 2023 (GLOBE NEWSWIRE) -- The Taiwan online automotive insurance market is expected to reach a valuation of US$ 751.5 Mn by 2030 from US$ 482.6 Mn in 2022, at an estimated CAGR of 5.7% from 2023-2030.
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The online automotive insurance market in Taiwan has experienced tremendous growth in recent years, with the penetration rate skyrocketing from 8% in 2015 to an impressive 34% in 2019, according to data from the Financial Supervisory Commission (FSC) of Taiwan.
This tremendous growth can be attributed to several factors, including the increasing number of internet users in Taiwan, which reached 18 million by the end of 2018 according to the Taiwan Network Information Center (TWNIC). This provides a large potential customer base for online automotive insurance companies. Additionally, the growing awareness of online automotive insurance, due to the increasing number of internet users in Taiwan, has also played a role in the market's growth.
Another factor contributing to the growth of online automotive insurance market is the development of e-commerce in Taiwan. The Taiwan Ministry of Economic Affairs (MOEA) reported that the e-commerce market in Taiwan reached $22 billion in 2018, and this trend is expected to continue in the coming years. As more and more companies sell their products and services online, this includes insurance companies, leading to the growth of online automotive insurance.
The increase in competition in the Taiwanese automotive insurance market has also contributed to the growth of online automotive insurance. Major insurance companies such as Cathay Century Insurance, Fubon Insurance, and Allianz Taiwan have all launched online insurance platforms, making it easier for customers to purchase insurance online. Government policies have also played a role in the growth of online automotive insurance. The Taiwanese government has implemented policies to encourage insurers to sell their products online, such as the “Regulatory Sandbox for Digital Insurance” which allows insurance companies to test new digital insurance products and services in a controlled environment.
Trends—Navigating the Taiwan's Online Automotive Insurance Market: Impact of Regulations and Emergence of Usage-Based Insurance
- Increased adoption of AI technology: The integration of AI technology is transforming the traditional methods of insurance operations, making the process faster, more efficient, and accurate. The use of AI in insurance is currently a trend in Taiwan's online automotive insurance industry, it has the ability to automate various tasks such as claims processing, underwriting, fraud detection, and customer service.
- Rising demand for digitalization and online insurance products: The increasing adoption of technology and digitalization in the insurance sector has led to a growing demand for the Taiwan online automotive insurance market. This trend is expected to continue as more and more consumers prefer the convenience of purchasing insurance online.
- Increased focus on data analytics and predictive modeling: With the advancement of technology, insurers are able to collect and analyze large amounts of data, which enables them to better understand their customers and identify potential risks. Insurers in Taiwan's online automotive insurance industry are increasingly using data analytics and predictive modeling to improve their risk management and underwriting processes.
- Emphasis on customer-centricity and personalization: Taiwan's online automotive insurance industry is shifting towards a more customer-centric approach, with a focus on personalization and providing tailored products and services to meet the specific needs of policyholders. Insurers are leveraging technology such as AI and data analytics to offer personalized and digitalized services to their customers in the online automotive insurance market.
- The need for stricter regulations: Taiwan's online automotive insurance industry is facing challenges due to the strict regulatory environment imposed by the Financial Supervisory Commission (FSC). Some global insurers are exiting the market due to the strict regulations, but the FSC is trying to create a level playing field for domestic and foreign players and make sure regulations are in line with international standards.
- Growing demand for usage-based insurance: The growing popularity of usage-based insurance (UBI) in Taiwan's online automotive insurance industry is driven by the increasing use of telematics and connected car technology. This type of insurance, which is based on the actual usage of a vehicle, enables insurers to offer more precise and accurate pricing to policyholders.
Know What our Findings Suggest about Taiwan Online Automotive Insurance Market
Astute Analytica's analysis of Taiwan online automotive insurance market highlights the tremendous potential for growth in this market. With premiums increasing by 30% in the past year, it's clear that more and more customers are turning to online channels to purchase their insurance.
Key findings from the analysis include:
- The majority of customers are young, male, and live in urban areas.
- The most popular type of coverage is third-party liability, followed by comprehensive and collision coverage.
- The average price paid for automotive insurance in Taiwan is $200 per year, but prices can vary widely depending on factors such as the type of vehicle, the age and gender of the driver, and the region where the vehicle is registered in the online automotive insurance market.
- There is a significant potential for insurers to increase their business in Taiwan, as the relatively low penetration rate (only 40% of vehicles are insured) combined with the large number of young drivers entering the market.
This presents a huge opportunity for insurance companies to tap into this growing market by offering competitive rates and convenient online platforms. As the number of internet users in Taiwan continues to climb and e-commerce thrives, the market is expected to continue its upward trend. Don't miss out on the opportunity to capitalize on this growth and capture a share of the market.
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Top 4 Players Holds Over 48% Share of the Taiwan Online Automotive Insurance Market
The Taiwan online automotive insurance market is a highly competitive market with a number of players vying for market share. Fubon Insurance Co Ltd, Cathay Century Insurance Co Ltd, Mitsui Sumitomo Insurance Co., Ltd., and Tokio Marine Newa are among the top players in the market and they generate over 48% of the market's revenue.
This high concentration of market share among a few players presents an opportunity for new entrants to differentiate themselves by offering unique products or services to target specific customer segments. For example, an insurer could focus on offering insurance for luxury or high-performance vehicles, or target young, tech-savvy consumers with an easy-to-use mobile app.
Another opportunity for new entrants is to focus on offering bundled insurance packages. For example, offering bundled packages that include both automotive and home insurance could help increase customer retention and cross-selling opportunities. In addition, given the growing popularity of online automotive insurance, companies should consider investing in digital marketing and online sales channels to reach a wider customer base. This could include social media advertising, search engine optimization, and online comparison platforms.
Astute Analytica's analysis of the Taiwan online automotive insurance market shows that Fubon Insurance has a strong presence in the online space, with a market share of over 15%. In addition, Fubon Insurance has a very good reputation among consumers, with a customer satisfaction rating of 92%. Our analysis also showed that Fubon Insurance is very efficient in terms of marketing and distribution, with a low cost-to-income ratio. This efficiency allows the company to offer competitive prices to its customers, which is one of the key reasons for its success in the online space.
Overall, the analysis shows that Fubon Insurance is a strong player in Taiwan's online automotive insurance industry. The company has a strong presence in the online space, a good reputation among consumers, and is very efficient in terms of marketing and distribution.
ICE Vehicles Segment Dominates Taiwan Online Automotive Insurance Market with a Revenue Share of 73%
The Taiwan market is segmented by vehicle type, including ICE vehicles, electric vehicles, and hybrids. According to the latest market data, the ICE vehicles segment dominates the market with a revenue share of 73% in 2022.
However, the electric vehicles segment is projected to experience strong growth in the coming years with a CAGR of 11.9% over the forecast period. This is driven by the high rates of urbanization and population density in Taiwan, which makes it an ideal market for electric vehicles. Additionally, the government's promotion of electric vehicles through various incentives and regulations are further fueling the adoption of electric vehicles in the region.
As the online automotive insurance market shifts towards electric vehicles, insurance companies should consider updating their products and services to cater to the specific needs of electric vehicle owners. For example, offering specialized coverage for battery and charging infrastructure, as well as providing roadside assistance for electric vehicles.
Insurance companies looking to capitalize on the growing market for electric vehicles in Taiwan should consider investing in digital sales channels and building a strong online presence to reach a wider customer base. Additionally, partnerships with EV manufacturers, charging infrastructure providers, and other key players in the EV ecosystem could provide opportunities for growth and expansion.
Some of the Top Market Players Are:
- BIDV Insurance Corporation
- Cathay Century Insurance Co Ltd
- Chung Kuo Insurance Co. Ltd.
- Fubon Insurance Co Ltd.
- Ho Tai Motor Co. Ltd.
- Mitsui Sumitomo Insurance Co., Ltd.
- Shin Kong Fire & Marine Insurance Co. Ltd.
- South China Insurance Co Ltd.
- Taian Insurance Co. Ltd.
- Tokio Marine Newa
- Union Insurance
- Other Prominent Players
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