Moody’s keeps negative outlook on Taiwan marketOctober 26 2017 by InsuranceAsia News Staff
While Taiwan’s insurance industry has shown improvement in terms of margins on savings-type products, Moody’s Investors Service is not changing its negative outlook on the sector.
The global ratings agency said the industry still needs to conquer a lot of challenges.
According to Frank Yuen, an assistant vice-president and analyst at Moody’s, the negative outlook raised on Taiwan’s insurance sector is rooted in several factors.
For one, the industry is making slow progress in selling products with higher protection elements.
Another thing, Yuen added, is that there is an increasing asset risk from a more aggressive investment allocation.
Lastly, the industry’s present capital position is weak.
Yuen said these issues will linger over the next 12 to 18 months.
He said life insurers may have cut their negative spread burdens, but the costs have involved raised investment risks.
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