Page 296 - India Insurance Report 2023- BIMTECH

284 India Insurance Report - Series II

 4 percent is a fire insurance
 4 percent is a health insurance

 10 percent is other non-life insurances

4. Opportunities and Challenges

4.1. Rapid Technological Advancement

The emergence of new technology will change the insurance industry and help increase performance
in various aspects. New products and services that can better meet customers’ need will be created to
ensure that customers will have more convenience and better experience. This will also increase the
opportunity for the insurance business.

Moreover, the promotion of InsurTech or startups in Thailand will provide the insurance industry
with innovations to improve the capacity and competitiveness of Thai insurance companies, leading to
sustainable growth of the insurance business.

Simultaneously, technological advancement increases cyber risk, which may cause damage to money,
data and consumers’ trust confidence. Therefore, regulatory body and insurance business sector need to
have an approach to managing the risk that may arise from applying digital technology to business
operations. Moreover, it is necessary to establish the measures to regulate the application of technology to
insurance business operations. The regulatory body needs to be well prepared for regulation and supervision
under the environment where technology keeps changing and takes such factors as new market players,
distribution channels, and supervisory technology (SupTech). The regulatory body also needs to encourage
the business sector to use technology for compliance with regulations and laws (RegTech).

4.2.Changing in Consumer Lifestyle

Consumers gradually change their lifestyles and behaviours. They need new products and relevant
information to make a decision. There are new channels through which consumers can have quick
access to insurance. Therefore, it is essential for the insurance business to develop a new body of knowledge
to contribute to development and understanding of different phenomena or behaviours, which will
enable the insurance industry to obtain benefits and enjoy sustainable growth.

According to a survey by Kepios (DataReportal), it is found that in 2019, around 82 percent of Thai
population had access to the internet. The use of mobile banking, including online shopping (via smartphone),
has increased greatly during the past five years since online payment system and delivery technology have
been more effective. Moreover, online shopping platforms allow customers to study and compare products’
qualifications, read other customers’ reviews, and choose products suitable for themselves so a lot of people
change their consumption behaviour and turn to purchase products and services online. Concerning
insurance, consumers also study relevant information before deciding to purchase insurance policies.