In the first quarter of 2025, foreign currency insurance policy new contracts exhibited a remarkable performance with a 34% increase year-on-year. However, this was coupled with a drop in its share of total new contract premiums to a 7-year low. According to the latest statistics from the Financial Supervisory Commission, the new contract premium for foreign currency policies totaled NT$99.476 billion for the first three months, accounting for only 36.76% of total new contract premiums.

Data from recent years indicated that foreign currency policies reached over 60% in share during 2021 and 2022, but this began to decline quarterly starting in 2024, with the first quarter of this year seeing its share dip below 40%. Analysts attribute this trend to a shifting investment sentiment towards more conservative options as the interest rate cycle approaches its end and the NTD remains stable.

The Financial Supervisory Commission outlined that although foreign currency policies saw more than a 30% annual increase, the strong performance of NTD-denominated policies diminished the relative share of foreign currency products. These policies primarily attract clients with asset allocation needs, but potential steep fluctuations in interest and exchange rates may trigger a wave of early policy terminations, posing challenges for life insurance companies in asset-liability management.

Additionally, the first quarter of this year observed a boost in sales from newly introduced foreign currency products and benefits from a lower comparative base from last year. With regard to product types, traditional foreign currency policies remain the mainstay, with new contract premiums amounting to NT$83.979 billion, representing a 30% increase year-on-year. Investment-type policies also performed strongly, achieving NT$15.497 billion and a 67% annual growth rate.

USD-denominated policies continue to dominate the market, with new contract premiums for the first three months totaling USD 2.959 billion, marking a 27% year-on-year increase. Among these, traditional USD policies grew 23%, while investment-type USD policies surged by 56%. AUD and CNY policies also saw explosive growth, jumping 173% and 113%, respectively, indicating the successful implementation of new products and multi-currency strategies by life insurance companies.