The general insurance business in Thailand is predicted to grow from $7.7bn in 2018 to $9.1bn in 2023, an increase over the next five years of 18%, says a report from data and analytics firm GlobalData.
The report notes that GWP in the country’s general insurance market registered a compound annual growth rate of 3.1% between 2014 and 2018.
Motor, property and personal accident and health together accounted for a share of more than 90% in 2018. Motor insurance held the largest share of 55.5% and is a growth driver. During 2014-2018, motor insurance business accounted for 54%-55% of total general insurance gross written premiums.
GlobalData says its report suggests profitability is under pressure in Thailand’s motor insurance business and is reflected in the loss ratio, which rose from 57.8% in 2014 to 65.3% in 2018 due to competition in the market.
Mounting operational losses, however, may moderate the competitive pricing going forward.
GlobalData believes the economic growth outlook is also an issue to contend with. As per government estimates, growth was at a five-year low by the end of the second quarter of 2019 as the country’s export-oriented economy reeled under international trade conflicts and currency appreciation.
Against this backdrop, insurers are using technology and other measures to increase efficiency. GlobalData sees telematics and usage-based insurance as two key technology-based solutions with significant growth potential in the industry.
Microinsurance, claims processing and customer relationship management are among the key focus areas. Also, the industry can look forward to opportunities in projects planned under the ‘Thailand 4.0’ stimulus plan.