Thai insurers tighten underwriting for flood-prone areas

Political uncertainty is also limiting near-term growth.

The Thai insurance market remains stable but is constrained by slow economic growth and a lack of significant stimulus, according to Paul Frankland, Vice President of Aon’s Commercial Risk Solutions in Thailand. 

Preferred property risks and cyber insurance have seen improvements, but losses from widespread flooding in northern Thailand in September are expected to impact property renewals in 2025, according to Aon’s Q4 2024 Global Insurance Market Insights Report.

Political uncertainty is also limiting near-term growth in the insurance sector.  

Insurers continue to focus on risk quality, with price reductions available for cyber, directors and officers (D&O), and certain low-hazard property risks. 

Capacity remains adequate for most risks, but flooding concerns may affect underwriting in high-risk areas. 

Underwriters are maintaining strict requirements for detailed risk assessments, whilst expiring coverage limits and deductibles are mostly available, except in flood-prone areas where reductions and higher deductibles may apply.  

The automobile insurance market remains competitive, though coverage for electric vehicles is more restricted due to poor loss experience. 

The liability market is stable, with international insurers driving competitive pricing. 

Cyber insurance remains buyer-friendly, with declining prices, particularly for excess layers, though insurers are placing greater emphasis on risk management and cybersecurity. Some insurers have started requesting information on artificial intelligence-related risks.  

For directors and officers (D&O) insurance, strong renewals are benefiting from competitive conditions, offering opportunities for broader coverage and premium savings.

In the property segment, competition is improving conditions for low-hazard risks, but flood-exposed properties could face upward pricing pressure following recent losses.