Thailand’s life insurance gross written premium valued THB380.1bn ($10.6bn) in 2013 and is expected to rise to THB627.1bn in 2018, according to Timetric’s Life Insurance in Thailand, Key Trends and Opportunities to 2018 report, which is available at the Insurance Intelligence Center (IIC).
The IIC says key factors expected to drive growth in Thailand’s life segment include:
- Rising life expectancy
- Tax benefits to propel growth in life insurance
- GDP growth to increase demand for life
For esxample, life expectancy in Thailand increased from 73.1 years in 2009 to 74.1 years in 2013. Meanwhile, Thailand’s GDP at current prices increased from $263.7bn in 2009 to $387.4bn in 2013.
In 2011, the World Bank upgraded Thailand’s income categorization from a lower middle-income to an upper-middle-income
economy, due mainly to low inflation and falling public debt.
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The IIC report highlights several key trends expected to shape Thailand’s life insurance sector over the coming years.
- Acquisitions and buyouts
- Insurers using bancassurance agreements to expand distribution networks
- Launch of innovative products
- Surge in demand for unit-linked products
- Formation of the AEC in 2015 to promote the Thai insurance industry
Several acquisitions are expected in Thai life insurance, given the segment’s huge potential and the increase in the foreign ownership
level to 49%.
Acquisitions are expected to be driven both foreign companies entering the Thai life segment, and leading Thai life insurers acquiring
Life insurance penetration of Thailand stood at 3.2% in 2013, which is lower than Singapore (5.5%) and Japan (6.4%).