Due to the ageing society, low penetration rates and growing liberalisation in Thailand, the insurance sector in Thai is expected to grow and has huge potential in the forthcoming years. Owing to higher living standards and disposable income, Thais are interested in wealth – related products and are expected to have demand for risk related financial services. However, due to the weak economy of the country, the insurance industry is expected to grow slowly but steadily in the coming years, with rising gross premiums. In the past years, non – life insurances have grown faster. But the potential for life insurance is far larger, almost twice the size of general insurance market. Life insurance growth doubled over the last decade. In the non- life insurance market, motor vehicles record for the highest gross premium. Due to the restrained spending power of the consumers, there is much trouble in motor insurance due to over- dependence on motor coverage.
Insurance penetration and density in Thailand has been increasing. The demographics of the country is useful in studying this. The nation is ageing quickly and has the oldest population in South – east Asia. The country does not have social security to the elderly population and insurance sector could make a huge difference here by introducing saving products. However, insurers are in a deadlock; due to the ageing population, the business has slowed down and the existing rules in the country make it difficult to invest overseas for better opportunities. The market is full of opportunities; it is both fragmented as well as concentrated, with many players as well as leading market player with large market share. The distribution of insurances happen mostly through brokers and agents; however Thai insurers are exploring digital penetration of insurance products.
Ken Research’s Governance, Risk and Compliance- the Thailand Insurance Industry provides an overview of the insurance regulatory framework in Thailand. It gives the latest key changes, and changes expected in the country’s insurance regulatory framework. The report provides key regulations and market practices related to different types of insurance product in the country and rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in Thailand. The key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations and details of the tax and legal systems in the country are detailed in the report.
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Ankur Gupta, Head Marketing & Communications