Insurance
From The Report: Thailand 2016
View in Online Reader

After a short-lived slowdown related to political uncertainty, economic weakness and the ending of a first-time car-buyer scheme, the insurance sector in Thailand is beginning to grow again at a healthy pace. Given the relatively low penetration rate, the increasing incomes in the country and the ageing population, it is expected that the sector will soon expand again at or near its historically fast rate. Regulatory changes are helping to improve the safety and soundness of the sector, and slowly allowing for more foreign participation. However, high household debt remains a concern and could stand in the way of a rapid recovery, while consolidation remains a work in progress. Some regulatory fixes and additional liberalisations are needed if the number of insurers is to be reduced. This chapter contains an interview with David Korunic, CEO, Krungthai-AXA Life Insurance.

Articles from this Chapter

Overview

Premium rebound: Despite a period of stalled growth, prospects look good for a strong recovery
OBG
plus

After a short-lived slowdown related to political uncertainty, economic weakness and the ending of a first-time car-buyer scheme, the insurance sector in Thailand is beginning to grow again at a healthy pace. Given the relatively low penetration rate, the increasing incomes in the country and the ageing population, it is expected that the sector will soon expand again at or near its historically fast rate. Regulatory changes are helping to improve the safety and soundness of the sector, and slowly…

Analysis

Side effects: Uninsured visitors are placing a growing burden on the national health care system
OBG
plus

For a number of years Thailand has been dealing with the issue of foreigners entering hospital and being unable to pay their bills for treatment. Young uninsured travellers will often suffer mishaps, while some older people who seek treatment have come to Thailand to retire and possess limited savings and no health insurance. National insurance from European countries and US Medicare generally do not extend overseas and patients are often left to pay their own bills. This has placed a considerable…

Analysis

Agricultural insurance: Crop protection is a top priority, as difficult weather conditions promise to impact farming long term
OBG
plus

Thailand is currently working to encourage farmers to protect their crops with insurance products. The authorities are using a combination of subsidies and education in order to increase the acceptance and purchase of the relevant policies. However, the roll-out may not be straightforward, and the long-term prospects are uncertain. Agricultural insurance products have historically been expensive, under-appreciated and lacking the numbers to make them a sensible proposition, for the government, the…

Interview

Cover story: OBG talks to David Korunic, CEO, Krungthai-AXA Life Insurance
OBG
plus

Interview:David Korunic What factors do you anticipate will act as drivers for further growth in life insurance premiums in Thailand during 2016? DAVID KORUNIC: The year 2015 proved difficult overall for the insurance industry, mainly due to the rise in global economic fragility making people more cautious in their spending, which had an impact on life insurance and other investment vehicles. However, due to ongoing infrastructure and investment projects in the public sector, I believe that…