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| The Insurance Market Condition after the Earthquake |
| Insurers are not willing to accept new customers who want to insure their factory. Fubon Insurance, one of the largest providers of property and casualty policies, expressed that they will still accept customers applying for house insurance, but with certain restrictions. AIU Insurance Company in Taiwan, expressed that they still offer earthquake insurance to customers but is extremely careful in it’s underwriting, since there were so many damaged buildings and factories all over the island. However, this reluctance of local insurance firms to go the extra mile on earthquake coverage presents an opportunity for international insurers. Allianz President General Insurance Company is obviously keen to move in. It provides earthquake coverage, mainly to large corporations and is continuing this policy despite of the quake. It also covers mortgage insurance policies for private individuals. Allianz is providing their existing clients with the possibility of purchasing full cover at reasonable but realistic prices and is developing new products, including earthquake coverage, at a price that remains moderate and reasonable for new clients. The reason for Allianz’s active role in providing insurance coverage after the quake and despite the reluctance of local insurers is that the risk level between new and old insurers is different. Old insurers in Taiwan have taken a significant risk on their present policies, hence that will limit their capacity to take more risks. But to a new comer, like Allianz, its capacity would be much higher than the old insurers. Allianz hopes that they can provide coverage to meet the increased demand for earthquake policies after the disaster. |
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