There are several countries in the Asia-Pacific region where insurance is a fast-growing sector. A lack of government funding for a life on benefits means that people expect to make their own arrangements regarding savings plans, health insurance, funeral expenses and Life cover for loved ones should the worst happen. It is becoming harder to sell Life cover in the UK and other EU markets, as many people expect that cover as part of their employer package, or the State to help their family should they die.
Many prefer to spend an extra £10-£20 per month on private health plans rather than Life insurance, as it’s seen to be a better investment given the waiting times across the NHS – a different type of `Life insurance’ perhaps that might save your own life by getting speedier diagnsis and treatment?
There is opportunity here for European Life and Health insurers looking to diversify from Western government areas where a different mindset prevails. Here’s some stats from GlobalData;
Thailand’s life insurance industry is set to grow at a compound annual growth rate (CAGR) of 4.4% from THB660.4 billion ($19.2 billion) in 2024 to THB781.7 billion ($23.1 billion) in 2028, in terms of gross written premiums (GWP), forecasts GlobalData, a leading data and analytics company.
According to GlobalData’s Insurance database, Thailand’s life insurance industry is expected to grow by 3.7% in 2024, supported by growing health awareness and changing demographics that has emphasized the need for financial planning of the aging population.
Aarti Sharma, Insurance Analyst at GlobalData, comments: “The life insurance industry in Thailand grew by 3.7% in 2023, bolstered by a demographic shift toward an aging society, a growing expatriate population, and rising health awareness. The trend is expected to continue in 2024 and 2025.”
Whole life insurance is the leading line of business within the life insurance industry in Thailand, with an expected share of 60.3% of the GWP in 2024. The growth of whole life insurance is attributed to an increase in average life expectancy in Thailand, which stood at 77.9 years in 2023 and is expected to rise to 79.6 years by 2030. Whole life insurance offers permanent coverage until death or up to an advanced age, which makes it a popular choice among Thailand’s aging population. Whole life insurance is expected to grow at a CAGR of 3.7% over 2024–28.
Supplementary or rider insurance is the second leading line of business, which is expected to account for a 22.3% share of total life insurance GWP in 2024. With demographic changes and a growing expatriate population, health riders that offer flexible and customizable coverage based on medical history and changing needs are gaining popularity in Thailand. For Thai employees, popular supplemental coverage options encompass dental, vision, and premium health insurance plans. Supplementary or rider insurance is expected to record a CAGR of 5.4% over 2024–2028.
Endowment insurance is the third-largest line of business and is expected to account for a 5.2% share in total life insurance GWP in 2024. In 2023, non-linked insurance products saw a 4.3% increase in GWP, while linked insurance premiums declined by 7.6%, due to adverse developments in the financial markets that prompted a shift in consumer demand towards products with more guaranteed returns. Endowment insurance is expected to grow at a CAGR of 5.2% over 2024-2028.
Pension, universal life, personal accident and health (PA&H), and other life insurance lines are expected to account for a combined 12.2% share of GWP in 2024.
Sharma concludes: “The life insurance market in Thailand is set to experience steady growth over the next five years, with demographic changes driving the demand for life insurance. Products catering to the growing needs of a rapidly aging population are expected to be a focus area for insurers over the coming years.”
Be the first to comment