The Rundown: Insurers’ Profits Surge, Taiya Announces Offshore Bid, and Chailease Insures Employees against COVID-19

A weekly snapshot of Taiwan business news stories brought to you by CommonWealth and AmCham Taiwan’s TOPICS

Insurance Industry Records Major Gains in First Half

The pre-tax profit of Taiwan’s life insurance industry in the first half of 2021 reached NT$259.2 billion, a 155.9% increase from the same period last year, according to statistics released by the Financial Supervisory Commission (FSC) at the end of July.

Additionally, property and casualty insurers earned NT$12.2 billion in pre-tax profit in the first six months of this year. The insurance industry’s total pre-tax profit of NT$271.4 billion in the first half also surpassed full-year earnings for 2020, setting a record-high annual growth rate of 148.5%.

The life insurance industry’s realization of equity interest in May and June was less satisfactory than in previous months. Still, thanks to large profits in Q1, net profit after tax for the first half has already exceeded last year’s full-year earnings of NT$206.1 billion.

Taiya Places Bid for Offshore Wind Farms

Taiya Renewable Energy Co., a local renewable energy developer, announced on August 2 that it will participate in the third phase of offshore wind development. The company said that it plans to enter bids for two offshore wind farms with a total capacity of 2.1GW.

Taiya stated that environmental surveying for the two wind farms commenced at the beginning of this year and that it had just applied for an environmental impact assessment. Its HuanYu wind farm, a fixed-bottom installation to be located off the coast of Taichung, will be included in the first round of bidding next year. The HuanYa wind farm off the Miaoli coast is expected to be included in the second round of bidding and would constitute the first floating offshore wind farm in Taiwan.

The company said that the project’s main team members come from CSBC-DEME Wind Engineering Co (CDWE), Siemens Gamesa Renewable Energy S.A., Swancor Renewable Energy, wpd, Enercon, Vena Energy, and Ina Energy, among others. All of these companies previously participated in Taiwan’s offshore wind power demonstration project, as well as the second-phase bidding and selection process. Taiya said it hopes to support the government’s efforts to promote localization of the offshore wind industry in Taiwan and aims to expand into the Asia-Pacific market in the future.

Chailease Employees Insured against COVID-19

Chailease, Taiwan’s largest leasing company, is offering all of its employees COVID-19 insurance, as well as paid vaccination leave to encourage employees to schedule their COVID-19 vaccinations.

Chailease stated that it has insured close to 4,000 employees and Taiwan-based family members of employees working abroad. The policies cover quarantine expenses, insurance premiums of up to NT$20,000, premiums of up to NT$50,000 for notifiable infectious disease care, and a daily living stipend in case of hospitalization. Daily premiums of up to NT$90,000 for isolation ward or intensive care stays are also included.

Insurers say that in the wake of Taiwan’s local outbreak this summer, many companies have decided to provide COVID-19 insurance for their employees. In early June, more than 100,000 people were insured in a single week. Companies that offered such insurance include Taiwan Cooperative Financial Holding Co. and Ernst & Young Taiwan, as well as telecommunications firms, retailers, manufacturers, and media outlets.

This edition was translated from the original Chinese by Julia Zhou.