A public debate over the advertised returns of endowment insurance policies has highlighted the need for greater insurance literacy in Thailand, according to a former president of the country's Actuarial Association.
The discussion was sparked by criticism on social media over the marketing of endowment insurance, with some advertisements highlighting returns of 300% to 800%, reported thansettakij.
The claims have prompted wider debate across Thailand's insurance and financial sectors over how policy returns should be calculated and presented.
Pichet Jiaramaneethavisin, widely known as Professor Tommy and a former President of the Actuarial Association, said the controversy reflected a broader lack of understanding about the role of insurance and how it differs from savings and investment products, the news outlet reported.
He said many Thais learn about insurance through advertisements, agents, social media or the experiences of friends and family rather than through formal financial education, resulting in an incomplete understanding of insurance products.
As a result, consumers often compare endowment insurance with investment products such as mutual funds or evaluate policies solely on their internal rate of return (IRR), even though the products are designed to serve different purposes.
As reported, Mr Jiaramaneethavisin also said insurers and distributors shared responsibility for improving public understanding. He warned that marketing focused primarily on cashback or investment returns, without adequately explaining the protection and risk management functions of insurance, could lead consumers to form unrealistic expectations.
He called for Thailand to strengthen insurance literacy as part of broader financial education, emphasising that the objective should not be to encourage people to purchase life insurance but to help them better understand how insurance products work and the role they play in financial protection.