Taiwan's IARD insurance industry was suddenly faced with approximately NT $270 billion in policy losses related to COVID-19 payments, after a pre-tax profit of NT $22.6 billion ($0.73 billion) in 2021. However, Peter Chung of the Central Reinsurance Corporation says that the reinsurance industry is still responding to market demands

The year 2021 to 2022 was marked by ups and downs for the Taiwanese insurance industry. Massive payments of NT $270 billion ($8.7 billion) to insured persons for COVID claims the following year led to a reduction in capital. Insurance companies also faced a substantial increase of more than 20% in IARD reinsurance rates and self-retention during the January 1, 2023 renewal season.

According to the June 2023 Consumer Price Index published by the Department of Statistics, the inflation rate in Taiwan is 1.75%. Although this figure is relatively modest compared to other major economies, it does drive up claims costs. According to Chung, “the seller's responsiveness in adapting premiums to inflation is a critical factor we consider for proportional business. With respect to excess claims activities, there was a significant increase in rates for 2023, reflecting the rates required by global reinsurers to account for the impact of inflation and the rise in the cost of capital due to changes in interest rates