Coping with an aging society
Elaborating further on how the new demography is transforming the (re)insurance scenario in Taiwan, Mr. Ho said, “Taiwan’s aging population presents both a challenge and an opportunity for life insurers. The demographic shift is reshaping product demand, distribution strategies, and long-term planning.”
Senior-focused products
RGA is helping insurers launch products specifically designed for individuals aged 50 and above. These include cancer products, long-term care coverage, retirement income solutions, and simplified underwriting offerings to accommodate older applicants. Consumers are seeking coverage for advanced treatments and chronic illnesses, which are more prevalent in older age groups.
Digital engagement
To reach older customers, insurers are investing in digital platforms that offer user-friendly interfaces and personalized services. This includes telemedicine integration and mobile apps for policy management.
Financial literacy and planning
Insurers are also focusing on retirement readiness. Surveys show that many Taiwanese are concerned about income sufficiency in retirement, prompting insurers to offer financial planning tools and educational resources.
Overall, life insurers in Taiwan are adapting proactively, but the aging trend demands continuous innovation and strategic foresight.
Value addition by private insurers
The state operated Taiwanese health insurance system is one of the best managed globally. Mr. Ho said, “Yet the private health insurance companies add value to that system. These include medical reimbursement coverage, critical illnesses coverage, long-term care products, and innovation and flexibility.”
Medical reimbursement coverage
Private insurers offer plans that cover services not fully reimbursed by NHI, such as private hospital rooms, alternative therapies, and overseas medical treatment. Such products are quite popular in the Taiwanese market, but due to the increasing medical inflation and customer behavior risk, managing the risk of these products causes big challenges for insurance companies.
Critical illness
Products that follow the National Health Insurance definition of CI (NHI CI) are the most popular in the Taiwan market. It is easy for distribution channels and end-customers to understand the product coverage. Such products offer lump-sum benefits to supplement customers’ economic loss/needs due to CI.
Long-term care
These areas are not comprehensively covered by NHI. Private insurers fill the gap by providing lump-sum benefits and tailored care packages.
Innovation and flexibility
Private insurers can experiment with new product designs, such as usage-based insurance, wellness incentives, and digital health platforms, which are harder to implement in a centralized system.
“In essence, while Taiwan’s NHI system is robust, private health insurers can enhance its effectiveness by offering complementary services, fostering innovation, and improving access and choice for consumers,” said Mr. Ho.