The Taiwan Banker

In 2024, the global superstar Bruno Mars performed for two consecutive nights at the Kaohsiung National Stadium, attracting a total of 80,000 fans, including my younger son and one of his classmates. To see their idol in person, they used years of savings to buy concert tickets and HSR tickets. As the concert ended late, I also helped book a hotel for them in Kaohsiung. Hotel prices near the venue surged that night, and rooms were in short supply. By my rough estimate, including accommodation and the purchase of merchandise, each child spent around TWD 15,000. At the time, my son was only in ninth grade. In 2025, Taiwan is expected to host nearly a thousand concerts. Taipei and Kaohsiung are competing to brand themselves as the concert capital, offering policies and incentives. Both mayors clearly see the massive spillover opportunities generated by the concert economy – also including sports events. The 2026 World Baseball Classic will begin in Tokyo in March, and is set to ignite Taiwan’s baseball passion. Ticket reservations for Taiwan’s games sold out instantly after they opened online. Some netizens even joked that people might mistake Taiwan for Tokyo. Now collectively referred to as the fan economy, these fan-driven activities reflect the formation of a complete value chain. At the center, of course, are the star individuals, groups, or even virtual figures. What truly propels this chain forward, however, is the upstream and downstream ecosystem surrounding concerts, along with the related tourism industry. One sector that has long been less visible, yet plays a critical role, is finance. In the past, finance was seen mainly as a payments facilitator. As concerts grow in scale and involve more cross-border movement, financial institutions want to move closer to center stage in this youth-driven economy, no longer content to remain just supporting players. In recent years, a range of financial products has emerged, including derivatives, hedging instruments, and virtual assets such as RWAs and NFTs, positioning the financial sector to tap into this emerging opportunity. The insurance industry stands out in particular. Concerts and sporting events are highly vulnerable to unpredictable factors, leading to cancellation, leading to significant losses for production companies and the broader supply chain. Insurance plays a crucial role in mitigating the financial pressure that follows cancellations triggered by gray rhino or black swan events. While event cancellation insurance has existed in the past, factors once considered rare or uninsurable have become immediate and pressing needs – such as increasingly abnormal global weather patterns, and heightened geopolitical tensions. In this issue, Professor Bill Chang of the Department of Risk Management and Insurance at National Chengchi University analyzes how a three-layer network can be used to build comprehensive coverage. Social psychologist Erich Fromm wrote in Escape from Freedom that fan behavior arises when individuals feel isolated and powerless, and seek security by attaching themselves to a powerful figure. In today’s era of social media, the more people scroll on their phones, the lonelier they can feel, and the more they crave recognition from peers and communities by following idols. This suggests that the fan economy will continue to expand, and the purchasing power it generates deserves further exploration by the financial industry.