Can reforms offset Thailand non-life catastrophe exposure?

It aims to strengthen underwriting and resilience.

Thailand’s non-life insurance sector continues to grow, supported by regulatory reforms and steady demand in health and motor insurance, despite exposure to natural catastrophes and economic uncertainty, according to AM Best’s APAC Insurance Market Report.

Reforms, which include stricter solvency rules, EV policy standardisation, named-driver rules, and co-payment clauses, aim to strengthen underwriting and resilience, whilst reinsurance helps manage catastrophe risks.

In 2024, total premiums reached $28.9b, up 2.3% year-on-year. 

Life insurance accounted for 69.5%, rising 3.1% to ~$20.9b, driven by health awareness and an ageing population. 

Non-life premiums grew 0.6% to ~$9.2b, slowed by weak economic growth, intense competition, and rising household debt.

Motor insurance dominated non-life at 56% of premiums, remaining flat at ~$5.1b amid a 26% fall in car sales and tighter auto loans. Non-motor premiums rose 1.4% to ~$4.0b, boosted by health, fire, and liability coverage.

The Thai non-life market is forecast to grow 1.5–2.5% in 2025 to ~$9.3b to ~$9.4b, supported by tourism, economic recovery, and rising health demand, though risks from geopolitical tensions, US tariffs, financial volatility, and climate events remain.

Natural catastrophes continue to pose challenges. The March 2025 Myanmar earthquake and a Bangkok building collapse could generate $600m to $900m in insured losses, mostly absorbed by reinsurers. 

Insurers are increasingly using catastrophe modelling to improve pricing, coverage, and risk management against floods and earthquakes.

($1.00 = THB31.30)