Insurance premiums are expected to break the THB1 trillion ($31.1 billion) mark for the first time in one or two years' time, supported by Thailand's GDP growth, the positive trend in the life assurance business, and growing bancassurance distribution channels for both life and non-life products, according to Mr Chuchatr Pramoolpol, deputy secretary general of the OIC.
The THB1-trillion mark is within reach. Total insurance premiums in Thailand for this year are projected at THB871 billion ($27.1 billion), an increase of more than 6% from last year, reports The Bangkok Post citing Mr Suthiphon Thaveechaiyagarn, secretary general of the Office of the Insurance Commission (OIC). Of this, life premiums are forecast at THB640 billion and non-life premiums at THB231 billion.
For the first quarter this year, total insurance premiums reached THB216 billion, up by 5.9% year-on-year, and accounting for 5.32% of the country's GDP. Life assurance premiums stood at THB159 billion and non-life premiums at THB57 billion.
"The interesting point for life assurance is how unit-linked products posted drastic growth of 264% year-on-year to THB9.13 billion in the first quarter, and premiums from insurance riders to health insurance contracts accelerated by 11.8% year-on-year, valued at THB19.1 billion, reflecting growing health concerns among consumers," said Mr Chuchatr.