The financial holding company (FHC) is a rapidly developing bancassurance business in Taiwan, as consumers are gradually becoming more conscious of which bank is more reliable, authentic and convenient. Not only can the bancassurance channel provide synergies to FHC but it can also regularly bring profit from financial product revenue income. The competitive strength of bancassurance has become the most important resource of insurance policies and new market channels in Taiwan. Through insurance policies, consumers can not only provide fundamental insurance interest but can also expect to earn profits. Thus, conventional life insurance cannot satisfy consumers’ needs. The brand-new policy insurance product ‘investment-linked insurance’ has thus been generated, and occupies a high percentage of the market-share worldwide.
The motivation of this research is to conduct a comparative analysis on Taiwan’s macroeconomic database including: Nation Income (NI), Unemployment Rate (UR), Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX), Wholesale Price Index(WPI), Consumer Price Index (CPI), Personal Saving rate(PSR) , Interest Rate (IR) and Foreign Exchange Reserves(FER). The initial stage will introduce the history of the investment-linked insurance policy and establish a research structure through regression analysis to explain how the macroeconomic database variables influence the sales volume of the investment-linked insurance policies. The aim of this research is to advise Financial Holding Companies on how to frame its strategy under today’s arduous circumstances; the financial insurance industry has immense influence on our country’s economic development, and under the economic recession of today the importance of the above topic is high.
According to the final series of tests we obtained the simultaneous equation regression model that shows the estimated coefficients for the macroeconomic variables National Income and Taiwan Stock Exchange Capitalization Weighted Stock Index have positive correlations, while Unemployment Rate, Consumer Price Index, and Interest Rate demonstrated have negative correlations with Investment-Oriented Insurance Premium Revenue.

REFERENCES
Anatolyev, S. (2008). A 10-year retrospective on the determinants of Russian stock returns. Research in International Business and Finance, 22(1), 56-67.
Bacinello, A. R. (2005). Endogenous model of surrender conditions in equity-linked life insurance. Insurance: Mathematics and Economics, 37(2), 270-296.
Barnett, B. J., Barrett, C. B., & Skees, J. R. (2008). Poverty traps and index-based risk transfer products. World Development, 36(10), 1766-1785.
Bartram, S. M., Brown, G. W., & Hund, J. E. (2007). Estimating systemic risk in the international financial system. Journal of Financial Economics, 86(3), 835-869.
Bhattacharya, P. S., & Thomakos, D. D. (2008). Forecasting industry-level CPI and PPI inflation: Does exchange rate pass-through matter? International Journal of Forecasting, 24(1), 134-150.
Bolancé, C., Guillén, M., & Pinquet, J. (2008). On the link between credibility and frequency premium. Insurance: Mathematics and Economics, 43(2), 209-213.
Cairns, R. D. (2008). Value and income. Ecological Economics, 66(2-3), 417-424.
Chaieb, I., & Errunza, V. (2007). International asset pricing under segmentation and PPP deviations. Journal of Financial Economics, 86(2), 543-578.
Chen, J.-S., Chang, C.-L., Hou, J.-L., & Lin, Y.-T. (2008). Dynamic proportion portfolio insurance using genetic programming with principal component analysis. Expert Systems with Applications, 35(1-2), 273-278.
Chen, Z., Li, D., Liao, L., Moshirian, F., & Szablocs, C. (2008). Expansion, consolidation of bancassurance in the 21st century. Journal of International Financial Markets, Institutions and Money, In Press, Accepted Manuscript.
Christiansen, M. C. (2008). A sensitivity analysis of typical life insurance contracts with respect to the technical basis. Insurance: Mathematics and Economics, 42(2), 787-796.
Cummins, J. D., & Venard, B. (2008). Insurance market dynamics: Between global developments and local contingencies. Risk Management & Insurance Review: Blackwell Publishing Limited.
Davidoff, A., Blumberg, L., & Nichols, L. (2005). State health insurance market reforms and access to insurance for high-risk employees. Journal of Health Economics, 24(4), 725-750.
De Giorgi, E. (2008). Evolutionary portfolio selection with liquidity shocks. Journal of Economic Dynamics and Control, 32(4), 1088-1119.
Desbordes, R. (2007). The sensitivity of U.S. multinational enterprises to political and macroeconomic uncertainty: A sectoral analysis. International Business Review, 16(6), 732-750.
Eisenbeis, R. A., & Kaufman, G. G. (2008). Cross-border banking and financial stability in the EU. Journal of Financial Stability, 4(3), 168-204.
Fields, L. P., Fraser, D. R., & Kolari, J. W. (2007). Bidder returns in bancassurance mergers: Is there evidence of synergy? Journal of Banking & Finance, 31(12), 3646-3662.
Gaillardetz, P. (2008). Valuation of life insurance products under stochastic interest rates. Insurance: Mathematics and Economics, 42(1), 212-226.
Gatzert, N., & Schmeiser, H. (2008). Combining fair pricing and capital requirements for non-life insurance companies. Journal of Banking & Finance, 32(12), 2589-2596.
Gupta, R. (2008). Tax evasion and financial repression. Journal of Economics and Business, 60(6), 517-535.
Hilmola, O.-P. (2007). Stock market performance and manufacturing capability of the fifth long-cycle industries. Futures, 39(4), 393-407.
Homölle, S. (2004). Bank capital regulation, asset risk, and subordinated uninsured debt. Journal of Economics and Business, 56(6), 443-468.
Iwaki, H., & Yumae, S. (2004). An efficient frontier for participating policies in a continuous-time economy. Insurance: Mathematics and Economics, 35(3), 611-625.
Jakovcevic, D., & Lovrinovic, I. (2004). Impact of savings on portfolio structure of insurance companies. Zagreb International Review of Economics and Business, 51-66.
Jennings, J. P., & Henry, E. G. (2008). Safety Products, Inc.: A case in financial analysis of a failing company. Journal of Accounting Education, 26(1), 34-53.
Landskroner, Y., & Paroush, J. (2008). Bank management and market discipline. Journal of Economics and Business, 60(5), 395-414.
Miyake, A., & Nakamura, T. (2007). A dynamic analysis of an economy with banking optimization and capital adequacy regulations. Journal of Economics and Business, 59(1), 14-27.
Paige Fields, L., Fraser, D. R., & Kolari, J. W. (2007). Is bancassurance a viable model for financial firms? Journal of Risk & Insurance: Blackwell Publishing Limited.
Park, H., Borde, S. F., & Choi, Y. (2002). Determinants of insurance pervasiveness: a cross-national analysis. International Business Review, 11(1), 79-96.
Rajkumari, M. (2007). A Study on customers' preference towards insurance services and bancassurance. ICFAI Journal of Risk & Insurance: ICFAI University Press.
Reschovsky, J. D., Strunk, B. C., & Ginsburg, P. (2006). TRENDS: Why Employer-Sponsored Insurance Coverage Changed, 1997-2003. Health Affairs.
Rodrik, D. (2006). The Social Cost of Foreign Exchange Reserves. Unpublished manuscript.
Ronen, J. (2006). A proposed corporate governance reform: Financial statements insurance. Journal of Engineering and Technology Management, 23(1-2), 130-146.
Sufian, F. (2009). Determinants of bank efficiency during unstable macroeconomic environment: Empirical evidence from Malaysia. Research in International Business and Finance, 23(1), 54-77.
Teräsvirta, T., van Dijk, D., & Medeiros, M. C. (2005). Linear models, smooth transition autoregressions, and neural networks for forecasting macroeconomic time series: A re-examination. International Journal of Forecasting, 21(4), 755-774.
Thurik, A. R., Carree, M. A., van Stel, A., & Audretsch, D. B. (2008). Does self-employment reduce unemployment? Journal of Business Venturing, 23(6), 673-686.
Tone, K., & Sahoo, B. K. (2005). Evaluating cost efficiency and returns to scale in the Life Insurance Corporation of India using data envelopment analysis. Socio-Economic Planning Sciences, 39(4), 261-285.
Tully, E., & Lucey, B. M. (2007). A power GARCH examination of the gold market. Research in International Business and Finance, 21(2), 316-325.
Van Gestel, T., Martens, D., Baesens, B., Feremans, D., Huysmans, J., & Vanthienen, J. (2007). Forecasting and analyzing insurance companies' ratings. International Journal of Forecasting, 23(3), 513-529.
Wong, S. C.-k., & Ladkin, A. (2008). Exploring the relationship between employee creativity and job-related motivators in the Hong Kong hotel industry. International Journal of Hospitality Management, 27(3), 426-437.
Yamada, K. (2008). Macroeconomic implications of conspicuous consumption: A Sombartian dynamic model. Journal of Economic Behavior & Organization, 67(1), 322-337.
Yan, J., Liu, J. J., & Li, K. X. (2008). Threshold control of mutual insurance with limited commitment. Insurance: Mathematics and Economics, 43(1), 108-115.
Zaglauer, K., & Bauer, D. (2008). Risk-neutral valuation of participating life insurance contracts in a stochastic interest rate environment. Insurance: Mathematics and Economics, 43(1), 29-40.
Zimmer, A., Schade, C., & Gründl, H. (2009). Is default risk acceptable when purchasing insurance? Experimental evidence for different probability representations, reasons for default, and framings. Journal of Economic Psychology, 30(1), 11-23.
Government Publication and website

National Statistics Bureau http://www.stat.gov.tw/mp.asp?mp=4

Central Bank of the Republic of China (Taiwan) http://www.cbc.gov.tw/mp1.html

The Life Insurance Association of Republic of China http://www.lia-roc.org.tw/

Financial Supervisory Commission http://www.ib.gov.tw/mp.asp?mp=1

Taiwan Insurance Institute http://www.tii.org.tw/eindex.asp

Taiwan Institution of Economic Research (Quarter Report)