, Thailand

Thailand insurance premium growth sluggish in 2021

This is due to a weakened economy with higher household debt.

Fitch Ratings revealed that the Thailand insurance premiums will continue to experience slow growth in 2021, pressured by a weakened economy with higher household debt, coupled with the impact on distribution channels from social distancing measures and lockdowns in the third quarter.

Insurers were shielded from higher losses and downside risks by their sound capitalisation, well above the minimum regulatory requirement, Fitch said. The Office of Insurance Commission also provided additional liquidity support via capital-related waivers, for the insurers with weaker credit profiles and high COVID-19 claim volume.

The ratings firm said that the premium growth over the medium term continues to be driven by low penetration, an ageing population, higher medical costs, and tax-reduction benefits.

“We expect the risk on higher COVID-19 claim volume to be manageable, as pandemic-related policies are relatively small in proportion to total market premium, including a positive momentum from the rise in the vaccination rate. Furthermore, we expect the premium via online channels to have significant growth, after the insurers implemented in full the digital platform in their business, which is accelerated by the pandemic and change in consumer behaviour,” Fitch said.

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

APAC emerges as leader in renewables insurance
RE is projected to account for 45% of global electricity generation by 2030.
Insurance
IFRC-DREF triggers insurance payout after disaster relief demands exceed threshold
The policy provides up to $16.92m in coverage.The International Federation of Red Cross and Red Crescent Societies' Disaster Response Emergency Fund (IFRC-DREF) has triggered its first-ever insurance payout after disaster relief demands exceeded its deductible threshold. 
Insurance