Chairman of the Financial Supervisory Commission, Peng Jinlong, believes that the drop in the life insurance sector's net worth is a short-term fluctuation rather than a long-term trend and that there is no need for excessive interpretation. According to the latest statistics from the Financial Supervisory Commission, by the end of March 2025, the net worth of Taiwan's life insurance industry had drastically reduced to 2.4172 trillion TWD, marking the lowest figure in nearly eleven months. The single-month decrease of 222.8 billion TWD is the largest drop in the last two and a half years and is approaching the situation during the life insurance net worth crisis of 2022. Financial sector insiders warn that as the global stock, bond, and foreign exchange markets continue to decline in April, the life insurance sector's net worth and profitability may face more severe challenges, and companies on the edge of capital adequacy ratio (RBC) will experience immense pressure for capital increases, which may further limit their dividend distribution capabilities.

This net worth crisis is not the first of its kind. Data from the Financial Supervisory Commission show that in September 2022, the life insurance sector saw a single-month evaporation of 538.5 billion TWD, creating the largest single-month decrease in history. By the end of March, the net worth had diminished by 222.8 billion TWD compared to the previous month, primarily due to a 247 billion TWD reduction in financial asset valuation benefits. Analysts in the financial industry indicate that the significant fluctuations in life insurance net worth are closely linked to turmoil in the global financial markets, particularly among US stocks, the dollar, and bonds, which are tightly interconnected with the Federal Reserve's interest rate policies.

Following the announcement of reciprocal tariff policies by US President Trump, the US stock market plummeted, leading to a sharp drop of over 2,000 points in Taiwan's stock market. This downward trend caused many investors to withdraw from their life insurance policies to meet margin calls, further exacerbating the market’s chain reaction. The financial industry warns that despite a 90-day exemption for high tariffs currently in place, market volatility has not alleviated, and the net worth crisis in the life insurance sector continues unabated.