Strengthening Trust in Taiwan’s Housing Market: A Developer’s Perspective on IDI
Client testimonial by Kevin Liu, Chairman of Baopu Development
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What key challenges faced by Taiwanese developers led Baopu to adopt Inherent Defect insurance (IDI)?
In Taiwan, developers face declining consumer trust as buyers struggle to assess construction quality and hidden risks, particularly following negative industry incidents. At the same time, expectations for transparency and higher standards continue to rise, making traditional quality control mechanisms insufficient. These structural challenges created a need for a more credible, evidence-based system.
Why did the company adopt IDI even though it is not mandatory in Taiwan?
We adopted Inherent Defects insurance (IDI) as a proactive and strategic decision. It introduces an internationally recognized risk-management framework that complements our existing quality controls and allows construction quality to be independently verified. IDI also provides financial protection against structural issues, with coverage of up to the full construction cost.
This “verification plus insurance” model reflects our commitment to long-term accountability, helps differentiate our brand, and supports sustainable value for homeowners.
How does Swiss Re support Baopu in implementing IDI?
Swiss Re requires an independent inspector with international expertise to oversee the entire risk-management process. Their engineering perspectives and global risk models help identify potential issues early, ensuring proactive management. Their risk management framework guarantees that our documentation and processes align with international standards. With the comprehensive inspection scope, both our team and the contractor have elevated our standards well beyond typical quality control practices, resulting in a robust quality assurance system.
Martyn Thompson
What are the benefits on quality and how have buyers responded?
Independent inspections help identify and correct potential issues earlier, resulting in more consistent and verifiable quality. Hidden works, such as structural components, waterproofing, and piping, are fully documented and audited, giving buyers visibility into areas they could not previously assess.
Buyer response has been overwhelmingly positive. Many have shared that IDI gives them confidence beyond traditional quality control, through independent verification and insurance backed by a trusted global reinsurer. This increased confidence has translated into stronger buyer engagement , faster purchase decisions, and is reflected in the strong sales performance of our most recent IDI-supported project.