Posted by (American Life Insurance Guide 07/04/2022 News) According to the German Allianz Life Insurance Group (Company Reviews) published in the pre-pandemic global wealth report that in the year before the pandemic, Taiwan's net financial assets increased by 5.2%, and Taiwan's per capita net financial assets were 97,850 euros, an improvement of 3 places, surpassing Japan, and ranking second in the world after Singapore. 4.
Taiwanese are the most enthusiastic about purchasing insurance and annuity
A Reuters report* pointed out that the total financial assets of Taiwanese households bucked the trend and grew by 5.1% in the year before the outbreak.All asset classes saw growth, with insurance and annuities showing the strongest growth (9.8%).Bank deposits, on the other hand, only edged up 3.4%, the weakest growth in a decade.Equities rose 3.7%.
"Rising instability hurts,"Allianz GroupEconomist Michael Heise said, "Unraveling the basic rules of the global economic order is a poisonous poison to the accumulation of wealth. There is no winner under hard-line protectionism."
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Taiwan residents are keen to buy US dollar insurance
With the Sino-US trade war and uncertain relations, as well as continued political tensions in the Taiwan Strait, monetary tightening and the normalization of monetary policy, savers around the world are in trouble and desperately seek safe havens for their assets.
On the other hand, Allianz said that thanks to a strong dollar, the United States replaced Switzerland and ranked first in financial net worth per capita last year.Long-term observation can clearly find the rise of the Asian economy. The four biggest winners are:
- Singapore (improved 13)
- Taiwan (improved 10 places)
- China (6 places improved)
- South Korea (up 5 places)
Under the internal and external effects of these two factors, high-net-worth families in Singapore, Taiwan, China and South Korea have gradually become an important group for allocating US dollar insurance trusts.
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2 reasons why Taiwan residents choose insurance trusts
The two urgent needs of seeking protection and appreciation of family assets and safe transfer of wealth have driven the overseas insurance demand of Taiwanese high-net-worth families in the current environment.
During the same period, as major countries in Europe and the United States continued to raise interest rates, the return on investment in real estate gradually declined.In addition, financial assets are more liquid than real estate, and in the high inflation environment, they are also favored by more customers who "have spare money" and pursue a stable asset-light model.
In addition to the US dollar asset insurance market provides Taiwanese households with better privacy and higher premium leverage.Some dividend-participating insurance trust products are subject to stricter judicial supervision, and the requirements for dividend ratio are higher than those of similar products in Hong Kong, Macau, Taiwan and other regions, providing policyholders with better dividend benefits and asset appreciation protection. (End of full text)
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Appendix*. “Institutional view: Taiwan ranked fourth in the world in net financial assets per capita last year”, Reuters, 2019, https://reut.rs/3bMqZO5
