Taipei, August 13, 2008 (CENS)--The average insured sum for first-year life insurance coverage in Taiwan has been rising since June 2005 when the Cabinet-level Financial Supervisory Commission (FSC) moved to promote raising insured sums. But the rising trend reversed in the first half of this year.

To counter such downward trend, the FSC is studying ways to offer incentives to encourage domestic life insurers to develop insurance products guarding against death.

According to statistics compiled by the FSC, Taiwan`s life insurance industry saw a consistent increase in average insured sum for first-year life insurance coverage to reach NT$620,000 (US$20,000 at US$1:NT$31), NT$700,000 (US$22,580), NT$804,000 (US$25,935) and NT$989,000 (US$31,900) in June 2005, December 2005, December 2006, and December 2007, respectively. But the rising average insured sum in first-year life policies had been slipping, to NT$737,100 (US$23,777) in the first half of this year.

Hsu Chin-chou, deputy director of the FSC`s Insurance Bureau, attributed the slump in average insured sum for first-year life policies to changing demands as well as the dominance of investment-linked insurance policies which feature smaller insured sums than protection-type products.

For instance, the FSC tallies showed over 60% of life insurers` revenues came from investment-linked policies and the remaining 40% generated by conventional life policies and accident insurance, in the first half of this year.

(by Ben Shen)