Taiwan's Stock Market Tumult: Insurance Policy Cancellations Surge Amidst Market Downturn

Investors in Taiwan scramble as stock market volatility triggers policy cancellations and heightened demand for cash.

The Taiwan stock market experienced a sharp decline within a single week, plummeting by nearly 4,000 points. This has led to widespread margin calls, leaving many investors scrambling to secure funds and meet their financial obligations. Reports suggest that several major life insurance companies in Taiwan are experiencing a surge in policy cancellations.

The primary driver behind these cancellations appears to be the need for investors to cover losses in the stock market. This influx of requests has resulted in life insurance company employees working overtime to manage the increased workload and assist policyholders.

An executive from a large life insurance company confirmed that the demand for policy cancellations has increased significantly in the past two days, exceeding the usual volume by over 20%. Another senior manager from a large life insurance company noted that the queue of people cancelling policies at a certain counter in northern Taiwan has doubled compared to the usual numbers.