With an overview of detarrification effected from year 2009, the Insurance companies in Taiwan market are facing keen competition, trying all their efforts to modify their business-running strategy in improving each company’s market share. With the aspect of an Insurer, there is nothing more important than creating differentiation in its insurance product and service.
Unfortunately, a differentiation created upon policy coverage and premium rate could be easily duplicated by market competitors in a short period of time. Therefore, whoever creates a barrier to its differentiation in product and service, it’s the one who may maintain its unique and market share.
This research is focus on the impacts of detarrification to Non-life insurance companies, and the objectives are,
1. To describe the change of Product Review System and regulation made by local authority, and its impact to local market.
2. To analyze how an insurance company maintain its strength in competition and leading status to the market by providing a differentiated product and service. The examples are based on local and worldwide detarrifed Automobile Insurance.
3. To provide recommendations for consumers in product selection by introducing the trend of main insurance products in the market, and analyze each provider’s market appeal.
Based on the findings of this research, it is a long term phenomenon that Insurers in the Automobile Insurance market tend to use combination of different coverage and increase of customer service as the innovation of their products. But, the meaning of innovation in this field shall not be limited simply as combination of different coverage, since it’s the foundational element of business running, and an essential factor of the strength in competition. To deal with detarrification, market competition, and sustaining reasonable profit, it’s critical for insurance companies to innovate their products, make proper market positioning, and select right strategy based on their underwriting capacity and risk bearing capacity.