Thailand insurers offer vaccine allergy insurance

Ratings firm AM Best, however, cautions insurers to be careful of underwriting risks.

Vaccine allergy insurance products launched by Thailand insurers address an important financial protection need in the Southeast Asian country, and presents a good opportunity for business growth but insurers should be cautious of risks involved in new products, ratings firm AM Best said.

In a commentary by AM Best, “Thailand Insurers Offer Innovative Vaccine Allergy Product, But Underwriting Risks Remain,” the ratings firm said that with new variants having emerged, coupled with pockets of vaccine hesitancy, the recent introduction of vaccine allergy insurance cover provides a growth opportunity for Thailand’s life and non-life insurance segments, which were supported by robust health insurance demand in 2020.

AM Best emphasized the importance of insurers remaining on top of their risk exposure, given the uncertainty surrounding loss exposure. The insurer added that effective risk mitigation will need to be supported by prudent underwriting risk management, including appropriate use of reinsurance, effective pricing strategies, clearly defined policy coverages, and prudent limits that are aligned to the companies’ risk appetites.

“Insurers will need to stay abreast of vaccine-related developments related to frequency and severity trends of side effects domestically and globally in order to proactively manage and limit their risk exposure should adverse trends develop. COVID-19 vaccine profiles vary amongst manufacturers, and the World Health Organization has noted a lack of comprehensive quality data regarding the serious adverse effects of particular vaccines. Positive or negative developments in these areas could bear material implications for Thailand insurers offering vaccine allergy insurance cover,” AM Best said.