COVID-19 insurance payouts to top NT$100bn: FSC

  • By Kao Shih-ching / Staff reporter

Combined payouts for COVID-19 and vaccine insurance policies by local non-life insurers is expected to surpass NT$100 billion (US$3.18 billion) this week, after reaching NT$98.8 billion on Monday, the Financial Supervisory Commission (FSC) said on Tuesday.

Local non-life insurers had compensated 2.03 million COVID-19 insurance policyholders a total of NT$77.76 billion as of Monday, or 17 times the premiums obtained from sales of the insurance policies, commission data showed.

The insurers had also paid 509,000 COVID-19 vaccine insurance policyholders a total of NT$21 billion, which was 20 times the premiums gained from the sales of such products, it said.

On average, every four out of 10 COVID-19 insurance policyholders have received compensation, the data showed.

The commission said that it would be difficult to forecast whether the amount of compensation would increase at a slower pace in the following weeks, as local outbreaks remain unpredictable, while policyholders generally do not claim compensation as soon as they are confirmed to have COVID-19 , it said.

As record-high compensation would affect insurers’ capital adequacy, the commission on Tuesday relaxed two rules regarding insurers’ reserves, as well as their calculation of risk-based capital.

Fearing that local infections would peak again this flu season, some insurers have asked the FSC to adjust rules on payout to people with positive rapid test results and those with positive polymerase chain reaction test results, as well as regarding compensation for home care and hospital treatment .

However, the commission said adjusting the rules would involve various government agencies and that it cannot change them unilaterally.

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