Thailand’s life insurance industry premiums totalled THB633bn ($17.6bn) in 2023, up 3.61% from a year earlier, with the top 10 companies having a combined market share of 92.5%, revealed Mr Sara Lamsan, the president of the Thai Life Assurance Association (TLAA).
Annual renewal premiums stood at THB455bn, an increase of 3.06%, while first-year premiums rose by 5% to THB178bn of which the top 10 companies claimed a combined market share of 88.5%, reported The Bangkok Post, quoting Mr Sara who is also the president and chief executive of Muang Thai Life Assurance.
“Health insurance is increasingly popular with a higher growth rate in 2023 than the previous year as more people are paying attention to their health and becoming aware of possible risks and rising medical costs,” he said.
Critical illness premiums are also growing well, increasing 5.93% to THB110bn in 2023. Pension insurance products in an ageing Thailand also attracted greater attention, with premiums growing by 14.2% to THB18bn.
Meanwhile, savings insurance premiums, which accounted for a large proportion (44.2%) of the life insurance business portfolio, grew by only 2.93% as overall life insurance premiums surged by 5.12%.
Mortgage insurance decreased by 0.95% as banks were cautious about lending to would-be homebuyers, said Mr Sara.
In addition, investment-linked insurance plans posted a negative growth of 7.69% amid capital market volatility, rising geopolitical conflict and the economic slowdown, he said.
2024
Looking ahead, TLAA is targeting industry premium growth of 2-4% this year to THB640-650bn, with health insurance premiums expanding by double digits.
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