Page 18 - The Insurance Times August 2022

Thailand insurance indus- 26.6% by 2030, which will support the support the growth of general insur-
growth of life and health insurance prod- ance in Thailand over the next few
try to reach $36.1 billion
ucts over the coming years. years. Notable developments include
by 2026, driven by life and Rakesh continues: “Personalization, the approval for a smart city project at
a cost of THB1.35 trillion ($37 billion)
health insurance products product innovation, and digitalization
and Kathu-Patong elevated express-
are gaining traction in Thailand’s life
The Thailand insurance industry is ex- way project with a cost of THB14.5
insurance industry. AIA Thailand, the
pected to grow at a compound annual billion ($440 million).
country’s largest life insurer, an-
growth rate (CAGR) of 4.7% from
nounced in March 2022 that it will in- Rakesh concludes: “Thailand’s total in-
THB890.4 billion ($27.8 billion) in 2021
crease its digital presence to keep up surance penetration of 5.5% in 2021
to THB1,1129.3 billion ($36.1 billion) in
with the changing trends. The insurer was higher than the penetration in
2026, in terms of gross written pre-
introduced various digital services such emerging markets like China (4.4%),
mium (GWP), according to GlobalData,
as AIA iSign, which facilitates the India (4.1%), Indonesia (1.5%), Viet-
a leading data and analytics company.
online purchase of life insurance poli- nam (3.3%), and the Philippines (1.7%).
According to GlobalData, Thailand’s
cies without face-to-face interactions. The popularity of life insurance prod-
total insurance industry growth will be
Currently, more than 54.4% of life in- ucts, aging population and innovation
led by the life and pension insurance
surance agents are using AIA iSign.” in the product offering are expected to
segment, which accounted for 69.3%
drive the Thailand insurance industry
General insurance accounted for the
share of the GWP in 2021.
growth over the next five years.”
remaining 30.7% share in the insur-
Rakesh Raj, Senior Insurance Analyst
ance industry GWP in 2021. The seg-
at GlobalData, comments: “Thailand’s
ment is expected to grow at a CAGR Taiwan general insurance
insurance industry grew by 3.0% in
of 5.7% over 2021-26, driven by the
2021 after declining by 0.2% in 2020 market to surpass $31 bil-
increase in vehicle sales and a strong
due to the COVID-19 related economic lion in 2026, driven by
pipeline of construction projects.
slowdown. The industry is poised for an
health awareness and
upward growth trend from 2022, According to the Federation of Thai
driven by economic recovery, in- Industries (FTI), automobile production booming real estate
creased health awareness, and the in the country recorded a 12.9% year-
The general insurance market in Tai-
country’s aging population, which is on-year increase in April 2022 due to
wan is set to grow at a compound an-
supporting the demand for life and higher demand. Automobile sales are
nual growth rate (CAGR) of 5.4% from
health insurance products.” expected to further improve with the
TWD220.2 billion ($25.5 billion) in
recovery in global automobile semicon-
Thailand is considered as one of the rap- 2021 to TWD286.9 billion ($31.3 billion)
ductor chip supply.
idly aging societies in the world. In 2021, in 2026, in terms of gross written pre-
almost 20% of its population was 60 years Increasing government investments in miums (GWP), forecasts GlobalData, a
or above. This is expected to increase to infrastructure development will also leading data and analytics company.
18 The Insurance Times, August 2022