Thai life assurance business premiums up 5% to $9.38b in H1

Bancassurance and insurance agents drove growth.

Thailand’s life assurance business opened the first six months of the year on steady financial footing after total premiums rose 5% YoY to $9.38b (THB312.53b) on the back of steady growth in bancassurance and insurance agents, according to the Thai Life Assurance Association. 

New life insurance premiums hit $2.7b (THB89.97b) whilst renewal premiums were worth $6.67b (THB222.25b) in H1 2018 with a persistency rate of 84%.

“Bancassurance contributed 48.4% of total premium income, overtaking insurance agents which contributed 44.61%,” said TLAA president Nusara Assakul Banyatpiyaphod.

Bancassurance income rose 6.1% YoY to $4.54b (THB151.24b) in H1 whilst the agent channel’s premium income grew 2.4% YoY to $4.18b (THB139.42b).

Channels including brokers, internet, counter service and walk-ins rose at a combined rate of 34% YoY to 14.83THB.

Thailand’s life assurance business is expected to maintain its positive growth momentum on the back of strong economic performance and government support, Nusara added.