In several countries in the Asia Pacific region, insurance is a fast-growing sector. With no government funding for a life on benefits, people expect to have to make their own arrangements for savings plans, medical insurance, funeral costs and life insurance for their loved ones in the worst-case scenario. In the UK and other EU markets, life insurance is becoming increasingly difficult to sell, as many people expect this insurance to be part of their employer package or for the government to help their family in the event of their death.
Many would rather spend an extra £10-£20 a month on private health insurance than life insurance as it is seen as a better investment given waiting times across the NHS – another type of ‘life insurance’ that could perhaps save your own life by enabling faster diagnosis and treatment?
This presents an opportunity for European life and health insurers looking to differentiate themselves from Western governments that have a different mindset. Here are some statistics from GlobalData:
The Thai life insurance industry is expected to grow at a compound annual growth rate (CAGR) of 4.4%, from THB 660.4 billion (USD 19.2 billion) in 2024 to THB 781.7 billion (USD 23.1 billion) in 2028, measured by gross written premiums (GWP), forecast GlobalDataa leading data and analytics company.
Accordingly GlobalData’s insurance databaseThe life insurance industry in Thailand is expected to grow by 3.7% in 2024, supported by rising health awareness and demographic changes that have highlighted the need for financial planning for the ageing population.
Aarti Sharma, Insurance Analyst at GlobalData, Comments: “The life insurance industry in Thailand grew by 3.7% in 2023, supported by a demographic shift towards an ageing society, a growing expatriate population and increasing health awareness. The trend is expected to continue in 2024 and 2025.”
Endowment insurance is the leading business segment of the life insurance industry in Thailand and is expected to account for 60.3% of gross income in 2024. The growth of endowment insurance is attributed to the increased average life expectancy in Thailand, which was 77.9 years in 2023 and is expected to rise to 79.6 years by 2030. Endowment insurance provides permanent insurance coverage until death or into old age, making it a popular choice among Thailand’s ageing population. Endowment insurance is expected to grow at a compound annual growth rate of 3.7% during 2024-2028.
Supplementary or additional insurance is the second most important business segment and is expected to account for 22.3% of total gross life insurance premium in 2024. Given demographic changes and a growing expatriate population, supplementary insurance with flexible and customizable coverage based on medical history and changing needs is becoming increasingly popular in Thailand. Popular supplementary insurance options for Thai workers include dental, vision and premium health insurance. Supplementary or additional insurance is expected to grow at a compound annual growth rate of 5.4% during 2024-2028.
Endowment insurance is the third largest business segment and is expected to account for 5.2% of total gross life insurance sales in 2024. In 2023, non-tied insurance products saw gross life sales increase by 4.3%, while premiums for tied insurance fell by 7.6%. This was due to adverse developments in financial markets that caused a shift in consumer demand towards products with more guaranteed returns. Endowment insurance is expected to grow at a compound annual growth rate of 5.2% between 2024 and 2028.
Annuities, universal life, personal accident and health, and other life insurance lines are expected to together account for 12.2% of GWP in 2024.
Sharma concludes: “The life insurance market in Thailand will experience steady growth over the next five years as demographic changes drive demand for life insurance. Products that meet the growing needs of a rapidly ageing population are expected to be a focus area for insurers in the coming years.”
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