Despite the political unrest, Thai Life Underwriters Association believes its business will grow by 20 per cent to Bt300 billion this year because consumers are focusing more on short-term savings.

See the original post:
Life insurance may hit BT300-BN mark this year

Banyong Vitthayaveerasak, president of the association, said continuous cash flow in the banking system has created a good opportunity for agents to attract more customers. However, they need to implement the correct way of matching products with customer needs.

“If agents approach the customer in the right manner, they [the customers will] will move their savings from bank accounts to investments that have higher returns such as life-insurance policies,” Banyong said.

Over the past ten years, the Thai insurance market has recorded astounding growth on account of governmental promotional measures, new products, improved sales channel, increased awareness and importance of insurance coverage and savings. With the opening of the sector and influx of foreign investment, Thailand’s insurance sector has started to show signs of maturity, with a wider range of products being offered and improvements in basic infrastructure.

The growth was mainly on account of the opening up of insurance sector and increased foreign investment, growing awareness of insurance products, launch of new products, government’s income-tax measures, as well as the growing economy and increased demand for future savings.

Like other countries, the Thai insurance industry can be classified into life and non-life businesses. The life insurance market is the largest part of the Thai insurance market. Due to government tax incentives, preference for insurance products over bank deposits as saving instruments and improved quality of life, the Thai life insurance market has continued to witness a rapid increase in premium income.

In terms of absolute size, the local players are larger than those in the non-life segment

Key risks to the outlook are (i) political uncertainty and (ii) the timing of the withdrawal of fiscal and monetary stimulus. Increased political tensions may have a long-lasting impact on investment, and withdrawal of stimulus (in Thailand and the advanced economies) must be precisely timed to avoid macroeconomic imbalances (including new asset bubbles) while also ensuring that the recovery is on a sufficiently solid footing.

Fiscal stimulus in China offset the decline in Thailand’s exports and is playing a role in the region’s rebound

Most of the infrastructure development in Thailand has been responsive to demand rather than forward-looking. Availability and accessibility appear to no longer be a challenge. The next step for Thailand is to put more emphasis on quality of service delivery, management, and sound regulation.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

APAC region records 119% QoQ growth in M&A deal value in Q2 2022

India, Australia and China were the top three countries when measured in terms of M&A deal value in Q2, with India accounting for half of the top 20 deals. South Korea, Indonesia, Malaysia, and Japan were the next top countries that contributed to a surge in M&A deal value.

Bangkok Moves Up to 6th in Global Ranking of Convention Cities

The top 10 convention cities for 2021 are Paris, New York, Singapore, Beijing, Tokyo, Bangkok, London, Barcelona, Istanbul, and Washington. In Asia-Pacific, the top 10 are Singapore,

Thailand’s Fastest-Growing Industries as the Nation Makes a Comeback

Tourism is being enabled greatly by foreign tourists being given a quarantine waiver, with an anticipated 5.5 million people set to visit the country this year. It’s an increase on the initial forecast, but still short of 2019’s 40 million foreign tourists.