Thai motor premiums jump 2.5% in Q1 2021

But overall new car sales dropped 18.4%.

Thai motor insurance providers recorded a 2.5% growth in premium income to $1.2b (THB38.2b) in Q1 2021, driven by cars sold in late 2020 but were delivered in early 2021, according to media reports.

On the other hand, overall new car sales in the first two months of this year dropped 18.4%, with new car sales expected to remain negative.

Insurers will likely offer discounts ranging from seven to ten percent on motor premiums depending on the model of the car, reports said.

Nevertheless, the motor insurance loss ratio is still forecasted to fall due to lower vehicle usage. Insurance claims statistics for 2018 to 2020 show the motor loss ratio at 65.3%, 66.1%, 63.2% respectively.

The motor loss ratio is predicted to be lower than 62% for 2021.