Taiwan insurance sector faces $5.27b risk exposure to Russia

Taiwan's total financial risks in all sectors are expected to reach $8.2b

Taiwan’s Financial Supervisory Commission has revealed that the brewing conflict between Russia and Ukraine will expose Taiwan to financial risks as high as $8.2b (NT$229.171b).

According to FSC’s Insurance Bureau, although Taiwan has no risk exposure in insurance in Ukraine, however for Russia, risk exposure was estimated to reach $5.27b (NT$147b).

An assessment was made by the FSC amidst mounting conflict between Ukraine and Russia.

Risks in other sectors

The FSC’s Banking Bureau said that as of December last year, loans from Taiwan’s 38 banks to Russia put their credit risk exposure at around $190m (NT$5.28b) whilst credit risk to Ukraine is at $220k (NT$6m).

Meanwhile, the FSC’s Securities and Futures Bureau said that although Taiwan does not have risks in Russia and Ukraine, private investors are exposed to risks through acquiring securities and futures through domestic and overseas investment funds.

Risk by private investors using domestic funds to invest in Russia was calculated by the bureau to reach $770m (NT$21.4b) whilst the risk faced by overseas funds is around $1.27b (NT$35.4b). Risk calculations for private investors using domestic funds in Ukraine were calculated at $180m (NT$5.08b).