Many general insurance companies anticipate that premium income in the sector would increase this year by 1.5-3%, slowing down from 2019 when the premium growth rate is estimated at 5%.
Aside from slower economic growth, the non-life sector sees challenges to sales because of planned increases in premiums in compulsory motor insurance business, reported Bangkok Business. The increases, of at least 10%, are set to take effect from April 2020.
Mr Anon Vangvasu from Bangkok Insurance, who is president of the Thai General Insurance Association, said that the premium increases would be because of losses in this class of business, arising largely from higher costs of spare parts and repairs. He indicated that no insurer would be willing to bear losses indefinitely.