Thailand: Life sector to grow, but less robustly
Source: Asia Insurance Review | Jul 2016
The Thai life insurance market will grow slightly less dynamically, at an average of 8.3% per year until 2026, compared with 11.5% in the past, according to Allianz Group Economic Research.
“Due to the still rather weak economic development, gross premium income in both segments, life and non-life excluded health, has grown markedly below the 10-year average in 2015, adding up to a plus of 4.7%,” reported The Nation newspaper citing Dr Michael Heise, chief economist of Allianz, who was on a visit to Thailand.
Allianz forecasts the Thai economy would expand slightly more strongly this year than last year – 3.0% versus 2.8% – thanks to public investment and the buoyant tourism industry.
But against the background of already high penetration and increasing competition in the life insurance market, Allianz expects future premium growth to be slightly weaker than in the past 10 years.