Thailand: Protection insurance to grow as interest rates stay low
Source: Asia Insurance Review | Mar 2017
Interest rates will remain at a low level even as they are expected to increase this year, according to Allianz Ayudhya Assurance (AZAY) which added that the low-interest environment is a key factor for protection insurance growth.
Mr Bryan Smith, President and CEO of AZAY, said that medical inflation expenses, the rising number of elderly people and the low penetration of protection insurance are providing a growth opportunity for AZAY, reported The Nation.
He said many people who had bought savings insurance would shift to buying protection insurance.
Other insurance companies are expected to shift to protection policies as well but AZAY had embraced this kind of insurance since three years ago, he said.
“We do believe the insurance companies should not compete with banks in terms of being a returns provider. We will not make a product that replies to interest rates,” he said.