Page 19 - Insurance Times July 2023

Thailand general insur- the Thailand general insurance mar- million) in 2026 and further increase it
ket, accounting for 54.8% share of the to IDR1 trillion ($69.2 million) by 2028.
ance industry to reach $11
GWP in 2022. The segment is expected Similarly, the MCR for reinsurers is set
billion by 2027 to grow by 5.6% in 2023, driven by an to increase from IDR300 billion ($20.8
increase in the sales of motor vehicles. million) to IDR1 trillion ($69.2 million)
The Thailand general insurance indus-
As per The Federation of Thai Industry, in 2026, and IDR2 trillion ($138.5 mil-
try is set to grow at a compound an-
28,026 units of cars were sold in lion) in 2028. The proposal also recom-
nual growth rate (CAGR) of 5.7% from
Q12023, a growth of 29.5% as com- mends increasing the MCR for takaful
THB285.5 billion ($8.1 billion) in 2023
pared to the same period in 2022. and re-takaful operators.
to THB373.5 billion ($11 billion) in
2027, in terms of gross written premi- Shivani Kela, Insurance Analyst at
ums (GWP), forecasts GlobalData, a Indonesia insurance sector GlobalData, comments: “The new
leading data and analytics company. regulation is also expected to result in
will see increased M&A
the transfer and closure of businesses
According to GlobalData’s Insurance
from new capital require- for insurers with lower revenue due to
Database, Thailand’s general insur-
an inadequate capital structure. Fur-
ance industry is projected to grow by ments regulation
thermore, such high capital require-
4.9% in 2023 and 4.8% in 2024, sup- Indonesia’s proposal to substantially
ments will also act as an entry barrier
ported by a recovery in vehicle sales, increase the minimum capital require-
for small insurtech players that are
infrastructure projects undertaken by ment (MCR) for insurance and reinsur-
looking to disrupt the market. This will
the government, and increasing de- ance companies is expected to result
take smaller players out of the compe-
mand for natural catastrophic (nat-
in increased merger and acquisition
tition and help larger players with
cat) insurance.
(M&A) activities, resulting in further higher capital strengthen their capa-
Sneha Verma, Insurance Analyst at consolidation of the country’s insur- bilities through consolidation.”
GlobalData, comments: “The Covid-19 ance industry, which is estimated to
As of December 2022, there were 72
pandemic impacted insurance industry grow at a compound annual growth
general insurers, 52 life insurers, seven
growth in Thailand, slowing it to 3.4% rate (CAGR) of 6.4% from IDR264.8
reinsurers, 54 takaful (29 life and 25
in 2020. However, with a recovery that trillion ($17 billion) in 2023 to IDR339.3
general) operators, as well as four re-
started in 2021, the industry is ex- trillion ($22 billion) in 2027, according
takaful operators conducting insurance
pected to surpass its pre-pandemic to GlobalData, a leading data and business in Indonesia.
growth level in 2023. It is expected to analytics company.
As of December 2022, there were 72
reach a full recovery by 2025, sup-
In May 2023, Otoritas Jasa Keuangan general insurers, 52 life insurers, seven
ported by property and motor insur-
(OJK), Indonesia’s insurance regulator, reinsurers, 54 takaful (29 life and 25
ance, which will be the fastest grow-
proposed to increase the MCR of insur- general) operators, as well as four re-
ing general insurance lines in 2023.”
ance companies from IDR150 billion takaful operators conducting insurance
Motor insurance is the leading line in ($10.4 million) to IDR500 billion ($34.6 business in Indonesia.
18 July 2023 The Insurance Times