The insurance industry is projected to expand 5-6% in 2024 with premiums of 301-303 billion baht thanks to the high growth of electric vehicle (EV) and health insurance, says the Thai General Insurance Association (TGIA).
TGIA president Somporn Suebthawilkul said premiums tallying 210 billion baht are estimated for the first nine months this year, up 5.2% from the same period of 2022.
For the full year, the general insurance business is expected to grow by 4-5% with 285 billion baht in premiums.
The TGIA anticipates the momentum to continue next year, supported by growth in the health and EV segments, as EV sales are expected to reach 100,000 units this year.
Travel insurance is also projected to grow based on the continued tourism recovery, he said.
“The industry improved this year as expected because of the economic recovery and smooth government transition, increased EV sales, and a rebound in both domestic and international tourism,” said Mr Somporn.
“All these factors have a positive impact on the industry, with good growth trends for various types of insurance.”
In the first nine months this year, motor insurance premiums amounted to 118 billion baht, up 6% year-on-year.
The number of car insurance policies tends to increase along with the average premium per policy, he said.
Fire insurance premiums rose 2.1% over the period to 7.76 billion baht. However, marine and shipping insurance premiums slid 0.6% to 5.33 billion baht on slowing exports.
Miscellaneous insurance premiums grew 4.6% to 78.6 billion baht, while property risk insurance premiums jumped 16.1% to 25.9 billion baht.
The loss ratio of various types of non-life insurance was 54.5% in the first three quarters, while that of motor insurance amounted to 59.4%.
“Consumer behaviour and expectations are constantly changing, introducing a challenge the insurance industry must deal with,” said Mr Somporn.
He said the association worked to strengthen confidence among the insured and the public this year, cooperating with relevant agencies to provide better protection and preventing foreign companies from selling insurance in Thailand without proper licences.
Communication with the public was improved to educate them about buying insurance, while the Personal Data Protection Act is helping insurers and TGIA establish measures to supervise and encourage compliance with the guidelines for non-life insurers, creating understanding among member companies about the law, said Mr Somporn.