Automobile insurers saw combined voluntary automobile insurance and compulsory automobile liability insurance
payouts hit NT$31.4 billion (US$1.05 billion) last year, and NT$29.5 billion (US$983.3 million) in the first half, said an industry source.
where [claim.sub.it] = 1 when the insured has filed the claim based on compulsory automobile liability insurance during the policy year, otherwise [claim.sub.it] = 0.
To test our second hypothesis, we perform the regression on the claim amount of the compulsory automobile liability insurance under the subsample of claimed policies.
Compulsory automobile liability insurance
premiums for all types of vehicle will be cut by an average 24.7 percent, government officials said.
This will be the first large increase in policyholder burdens for compulsory automobile liability insurance
since fiscal 1985.
The FSA will ask its Compulsory Automobile Liability Insurance
Council to recommend how much premiums should increase when the advisory panel is convened later this year, the officials said.
This figure also factored in the boost from the abolition of government reinsurance in compulsory automobile liability insurance
, it said.
The six insurers registered small rises in net premium revenues, or the equivalent of sales at nonfinancial companies, but premiums fell at two of the six companies when the boost from the abolition of government reinsurance in compulsory automobile liability insurance
was taken away.
Net premium revenues, equivalent to sales for ordinary business corporations, increased in nominal terms in the April-September period due to a reform of the compulsory automobile liability insurance
system in which the government has stopped using part of premiums for reinsurance, allowing insurers to receive insurance premiums in full.
The government has also asked the council to examine reforms of the compulsory automobile liability insurance
system and supervision of financial institutions under the new deposit insurance law taking effect in April.
In a report submitted to FSA Commissioner Masaharu Hino, the Compulsory Automobile Liability Insurance
Council also recommended the government institute a system to pay compensation to people seriously handicapped as a result of a traffic accident.