Newsletter
AUTOMOBILE INSURANCE PREMIUMS TO BE GRADUALLY DEREGULATED
The tariff rate system has long been in use in automobile insurance in Taiwan. The Ministry of Finance (MOF) plans to gradually institute a discretionary premium rate system instead. It will begin by deregulating loading, allowing property insurers to set such premiums at their own discretion. The long-term plan is to eventually deregulate discretionary automobile insurance across the board.
Automobile insurance accounts for more than half of all property insurance business in the domestic market today. Following the gradual deregulation of automobile insurance premiums, relative growth and decline among property insurers will become even more conspicuous.
Across-the-board deregulation of automobile insurance premiums after 2000 will bring a major transformation in the domestic insurance market. The MOF has not ruled out the possibility of also deregulating the premium rate system for compulsory automobile and motorcycle liability insurance after 2000 if implementation of the initial discretionary premium system goes smoothly.