Insurance
From The Report: Thailand 2017
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Given its low penetration rates, ageing society and the trend towards increased liberalisation, the Thai insurance sector has significant potential and growth is expected to be steady in the coming years. Thais are becoming more interested in savings and wealth-related products, and over time it is also likely that they will have a better understanding of the need to cover risks. Together, these factors could mark a tipping point for the industry. Still, balancing the positive trends are several factors weighing on the sector. The nation’s relatively weak economy, which has made insurance less affordable, is leading to lower than normal premium growth. The sector is also somewhat mature in certain segments. Over the next decade, the Thai insurance market is expected to grow at a slower pace than in the past, but the rate is still comparatively high. This chapter contains interviews with Suthiphon Thaveechaiyagarn, Secretary-General, Office of Insurance Commission; and Michael Plaxton, CEO, FWD Life Insurance.

Articles from this Chapter

Overview

Back on pace: After several years of volatility, the market returns to high growth rates of the past
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Given its low penetration rates, ageing society and the trend towards increased liberalisation, the Thai insurance sector has significant potential and growth is expected to be steady in the coming years. Thais are becoming more interested in savings and wealth-related products, and over time it is also likely that they will have a better understanding of the need to cover risks. Together, these factors could mark a tipping point for the industry. Still, balancing the positive trends are…

Interview

Cultivating awareness: Suthiphon Thaveechaiyagarn, Secretary-General, Office of Insurance Commission, on growing domestic coverage
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Interview: Suthiphon Thaveechaiyagarn What level of regulatory reform is necessary in order to prepare the insurance sector for high growth in digital distribution channels? SUTHIPHON THAVEECHAIYAGARN: Since the bloom of internet usage in Thailand we have seen various platforms that help consumers gain a better understanding of insurance and help them choose an appropriate level of coverage. Financial technology related to the industry includes the creation of platforms to accelerate consumer-to-insurer…

Analysis

Step by step: The market is liberalising at a steady pace
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A series of notifications and amendments related to foreign ownership in the Thai insurance sector has seen the market become more liberalised at a rapid pace. Four reforms have been mandated by the government in recent years, and as of mid-2017, another was in draft form. In part, the adjustments reflect country’s favourable stance towards liberalisation, especially in light of the imminent creation of a single financial market in the ASEAN Economic Community, which comes into force in…

Interview

Poised to grow: Michael Plaxton, CEO, FWD Life Insurance, on initiatives and opportunities in the domestic market
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Interview: Michael Plaxton How can low growth rates in life insurance premiums be reversed in the short term? MICHAEL PLAXTON: While the industry contracted by around 8% in 2016 and 2017 also looks to be a tough year, as with all averages, some players in the market will beat that figure while some will not. The key to growth in Thailand is looking for new opportunities and new ways to meet customers, and this can be done in several ways. Insurance is a rather cumbersome industry for the customer…