OREANDA-NEWS. Rate increases in the Taiwan commercial fire insurance line of business are expected as a result of recent regulatory changes intended to address inadequate pricing, particularly on mega-risks, according to a new A.M. Best briefing.

The commercial fire line of business is subject to natural catastrophe risks. In addition to accumulated losses from residential and normal commercial risks, mega-risks could lead to severe losses should a natural catastrophe occur. The Taiwan earthquake in February 2016 is a good example of how material losses arose from high-tech risks and their related business interruption losses.