Association predicts 2.0%-4.0% growth for Thai life insurance

The industry forecast is within the government’s target of 2.2% to 3.2% for 2024.

Total premiums of Thai life insurance business amounted to THB633.4b in 2023, marking a growth of 3.6% year-on-year (YoY), data from the Thai Life Assurance Association showed. 

The association said the growth was primarily driven by increased premiums in new business and renewal premiums. New business premiums saw a growth rate of 5.1%, reaching THB178.5b, whilst renewal premiums grew by 3.1%, totalling THB455.0b.

Looking ahead to 2024, the Thai Life Assurance Association predicts a growth rate for the life insurance business in the range of 2.0% to 4.0%. 

This forecast aligns with the expected expansion rate in 2024, estimated by the National Economic and Social Development Council to be 2.2% to  3.2%. 

Factors contributing to this growth include increased health consciousness among the population, demographic shifts towards an ageing society, and the adoption of technology by businesses to enhance competitiveness and operational efficiency.

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Call for action

In response to economic and market uncertainties, the Thai Life Assurance Association emphasises the importance of organisational development for sustainable growth (ESG). 

This involves considering environmental, social, and governance responsibilities in all aspects of investments and operations. 

Additionally, the association plans to develop new types of life insurance products, leverage technology and innovation, educate the public on technology and cyber threats, and update regulations to ensure compliance and consumer protection.

Moreover, the association stresses the importance of comprehensive risk management practices and maintaining a robust financial position with a risk-based capital adequacy ratio (CAR Ratio) higher than the prescribed criteria. 

The sector's risk-based capital adequacy ratio currently stands at 350%, exceeding the supervisory CAR, indicating stability and strength in the life insurance business.