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Foreign Currency Insurance Sales Reach NT$67.3 Billion, Hidden Risks Revealed

Foreign Currency Insurance Sales Reach NT$67.3 Billion, Hidden Risks Revealed

According to the latest data from the Financial Supervisory Commission, the total premium income from new contracts for foreign currency insurance products reached NT$67.354 billion by the end of February in the 114th year. Among this, investment-type insurance accounted for NT$9.42 billion (around 14%), while traditional insurance accounted for NT$57.934 billion (approximately 86%).

The foreign currency insurance products are primarily denominated in U.S. dollars, Australian dollars, and Chinese yuan. The premium income from new contracts for U.S. dollar insurance products is around US$2.016 billion, while Australian and Chinese yuan contracts yield about AU$43 million and CNY 33 million, respectively.

The Commission warns that since all charges, payments, and premiums are in foreign currency, consumers should be particularly cautious of exchange rate risks when purchasing. Additionally, significant political or economic changes in these countries could impact their financial markets and exchange rates, thereby affecting the policy value.