Thailand’s non-life insurance rebound in 2023 driven by higher premiums

The market recorded an underwriting gain of THB13.0b in 2023

Thailand’s non-life insurance industry rebound in 2023 was driven by higher premium income and lower claims, particularly in the health and hull insurance segments, according to an AM Best report. 

The market recorded an underwriting gain of $380m (THB13.0b) in 2023 after a net underwriting loss of $1.48b (THB50.7b) in 2022

Motor insurance remained the dominant business line, accounting for 57% of direct premiums in 2023, supported by rising domestic car sales, particularly electric vehicles. 

AM Best noted that six of the 10 leading non-life insurers generated more than half of their direct premiums from motor insurance.  

Health insurance, the fourth-largest segment, contributed to overall non-life premium growth but saw two years of decline in direct premiums written following a surge in 2021. 

The drop was attributed to medical inflation, higher co-payment limits on standard personal health policies, and financial challenges faced by insurers due to claims from low-cost COVID-19 lump-sum policies.  

The underwriting losses in 2022 led to significant capital declines for non-life insurers. 

Whilst capital levels improved for most companies in 2023 due to stronger profitability, some insurers faced financial difficulties, prompting regulators to allow temporary liquidity measures. 

Premium growth remained steady in 2023 but was largely flat in the first three quarters of 2024.

($1.00 = THB34.27)