Insurance
From The Report: Thailand 2018
View in Online Reader

Steadily improving macroeconomic growth and shifting demographics are creating favourable conditions for the expansion of Thailand’s insurance industry, with reforms aimed at boosting foreign participation supporting a bright outlook for the remainder of 2018. The life insurance segment continues to dominate the country’s insurance landscape, accounting for the bulk of premium and policyholders, benefitting from the ageing population and rising popularity of investment-linked products, which should keep it on a steady growth path in the coming years. The smaller non-life segment is also poised for steady expansion in the short to medium term, with low penetration and density, leaving room for growth. Although the sector remains overcrowded, the industry regulator Office of Insurance Commission (OIC) is increasingly pushing for consolidation. This chapter contains interviews with Vitai Ratanakorn, Secretary-General, Government Pension Fund; and Bryan Smith, President and CEO, Allianz Ayudhya.

Articles from this Chapter

Overview

Development priorities: Recent reforms aim to boost foreign participation
OBG
plus

Steadily improving macroeconomic growth and shifting demographics are creating favourable conditions for the expansion of Thailand’s insurance industry, with reforms aimed at boosting foreign participation supporting a bright outlook for the remainder of 2018. The life insurance segment continues to dominate the country’s insurance landscape, accounting for the bulk of premium and policyholders, benefitting from the ageing population and rising popularity of investment-linked products, which…

Analysis

A maturing market: Demographic shifts present opportunities for market growth
OBG
plus

A steady demand for life products has continued to fuel growth in Thailand’s insurance market, with shifting demographics and government efforts to boost personal and retirement coverage providing opportunities for insurers. In 2017 life insurance premium totalled BT602bn ($17.43bn), an increase of 5.9%, according to the Thai Life Assurance Association (TLAA). The performance slightly exceeded the full-year forecast of BT600bn ($17.37bn) made by the market regulator, the Office of Insurance Commission…

Interview

Cultivating opportunity: Vitai Ratanakorn, Secretary-General, Government Pension Fund (GPF), on an ageing society, and opportunities for private life insurers and alternative investments
OBG
plus

Interview :Vitai Ratanakorn What new products will roll out in the near term? VITAI RATANAKORN: When looking at arranging long-term benefits and investment schemes for our members, one of the key ways is through the introduction of life insurance products. In 2018 we are working to launch annuity, senior complex and labour mortgage programmes. Although these were launched in the past, they didn’t attract as much interest as expected because of regulatory or calculation issues. With the…

Interview

Taking cover: Bryan Smith, President and CEO, Allianz Ayudhya, on promoting growth in the health and life segments amid changing trends
OBG
plus

Interview :Bryan Smith Given Thailand’s ageing population, what life insurance products and services are required in order to extend the level of coverage? BRYAN SMITH: Thailand is heavily underinsured; less than 30% of the population has life insurance and only 10% has health insurance. Estimates show that by 2020 Thailand’s population will have an older average age than that of China, and as a result we foresee at least 10% per annum growth in health products over the medium term. In…

Overview

Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets
OBG
plus

While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries in less-developed economies. By the Numbers In terms of simple throughput, insurance remains very much centred in North America, Europe and mature Asian markets. With long histories of trading risk, a general acceptance of the relevant products,…

Overview

Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets
OBG
plus

While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries in less-developed economies. By the Numbers In terms of simple throughput, insurance remains very much centred in North America, Europe and mature Asian markets. With long histories of trading risk, a general acceptance of the relevant products,…