Due
to the ageing society, low penetration rates and growing liberalisation in
Thailand, the insurance sector in Thai is expected to grow and has huge
potential in the forthcoming years. Owing to higher living standards and
disposable income, Thais are interested in wealth – related products and are
expected to have demand for risk related financial services. However, due to
the weak economy of the country, the insurance industry is expected to grow
slowly but steadily in the coming years, with rising gross premiums. In the
past years, non – life insurances have grown faster. But the potential for life
insurance is far larger, almost twice the size of general insurance market.
Life insurance growth doubled over the last decade. In the non- life insurance
market, motor vehicles record for the highest gross premium. Due to the
restrained spending power of the consumers, there is much trouble in motor
insurance due to over- dependence on motor coverage.
Insurance
penetration and density in Thailand has been increasing. The demographics of
the country is useful in studying this. The nation is ageing quickly and has
the oldest population in South – east Asia. The country does not have social
security to the elderly population and insurance sector could make a huge
difference here by introducing saving products. However, insurers are in a
deadlock; due to the ageing population, the business has slowed down and the
existing rules in the country make it difficult to invest overseas for better
opportunities. The market is full of opportunities; it is both fragmented as
well as concentrated, with many players as well as leading market player with
large market share. The distribution of
insurances happen mostly through brokers and agents; however Thai insurers are
exploring digital penetration of insurance products.
Ken
Research’s Governance,
Risk and Compliance- the Thailand Insurance Industry provides an
overview of the insurance regulatory framework in Thailand. It gives the latest
key changes, and changes expected in the country's insurance regulatory
framework. The report provides key regulations and market practices related to
different types of insurance product in the country and rules and regulations
pertaining to key classes of compulsory insurance, and the scope of
non-admitted insurance in Thailand. The key parameters including licensing
requirements, permitted foreign direct investment, minimum capital
requirements, solvency and reserve requirements, and investment regulations and
details of the tax and legal systems in the country are detailed in the report.
For more information, click on the
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Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
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