The insurance regulator, the Office of Insurance Commission (OIC), is optimistic about prospects for the insurance industry in 2020, saying health insurance, government-related insurance products and crop insurance will be growth drivers.
Although the economic slowdown dealt a blow to the insurance industry in 2019, prospects look brighter this year, according to a report in The Bangkok Post citing OIC secretary general Suthiphon Taveechaiyagarn.
“Insurance companies are facing a challenge from the implementation of IFRS 17, an international financial reporting standard to be adopted in the next two years, but fast-growing health insurance products and growing demand for insurance products from government-related parties are growth drivers,” Mr Suthiphon said.
Several government mega projects are under construction and need insurance protection, while crop insurance has received a good response from farmers. The OIC plans to expand agricultural coverage to other economic crops.
The OIC would revamp many rules to be more flexible and conform to the current situation, such as investment rules, especially for foreign assets, that are expected to become clearer by the first quarter of 2020, Mr Suthiphon said.
The office is preparing various measures, including technology investment and assistance for partnerships between insurers and local tech companies, as well as for foreign investors who are eyeing stakes in Thailand’s insurance sector.
The OIC is also preparing OIC Gateway, a platform enabling insurance companies to share information. The first segment to be covered by the OIC Gateway will be motor insurance.