Insurance Sales Boom in Taiwan Sparks Currency Depreciation Fear
- BI sees Taiwan’s currency weakening to 34 per dollar this year
- Insurers seen accelerating offshore investments, outflows
This article is for subscribers only.
A surge in insurance sales in Taiwan is threatening to spur an increase in capital outflows, potentially dragging the local dollar to levels seen during the global financial crisis.
Sales of insurance policies in Taiwan rose to over NT$100 billion ($3 billion) in December, the highest in a month since January 2022, according to Taiwan’s Insurance Institute data released last week. The demand was mainly driven by better returns on these products compared with banks’ foreign-currency deposits.