Life insurance business in Thailand is expected to see total written premiums of about THB580bn ($18.6bn) to THB600bn for the whole of this year, according to the Thai Life Insurance Association.
This would represent a fall of 2-5% in line with the country’s reduced GDP forecast growth of around 6%, reported Post Today. This would be the second consecutive year of decline for the sector.
Mr Sara Lamsam, president of the association, said that total life premiums fell by 3.27% to THB285.94bn in the first half of the year.
Business decreased in the first half of 2020 due to low interest rates and the impact of the COVID-19 pandemic. Consumers slashed spending. At the same time, life insurance agents, who formed the main distribution channel for selling life insurance, could not meet clients face to face.
Factors that will support growth of the life insurance business are: relaxation of government measures and regulations in order to facilitate and reduce the impact on the life insurance companies, and changes in life insurers’ operations such as the shift towards digital processes.
Growth in the sector has been slowing since 2015 due to new regulatory provisions such as personal data protection rules and the implementation of IFRS 17.