Moody’s flags Taiwan insurers’ vulnerability to market swings

Taiwan’s insurance sector is more exposed to market volatility triggered by US tariffs due to smaller capital buffers, while its banks remain well-capitalised and able to absorb economic shocks, according to international ratings agencies. Moody’s said regional insurers face credit-negative impacts from heightened equity market turbulence and inflation risks. Taiwanese insurers are particularly vulnerable to falling equity prices, with some major life insurers reporting a 15% drop in unrealised gains in the first quarter. The Financial Supervisory Commission has urged insurers to ensure liquidity as it monitors potential policy cancellations. Meanwhile, Taiwan Ratings said banks are in a strong position, though increasing economic ties with the US could raise exposure to trade policy shifts.