Thai insurers face slower growth in 2018

November 30 2017 by InsuranceAsia News Staff

Despite Thailand’s stable economy and inflation, the country’s insurance sector is expected to post growth of only 5.5% in 2018, slower than the 5.9% expected for 2017, according to Willis Towers Watson.

The firm expects Thailand’s salaries to rise by 5-6% annually in the short term on the back of the country’s stable economy and inflation.

Despite the salary rise, Pichpajee Saichuae, managing director of Willis Towers Watson’s local unit, said the insurance sector’s growth will continue to be muted or will possibly decline next year.

Turnover rate in the sector this year also reached 16%, the second-highest, next only to that of electronics manufacturing.

In terms of variable bonuses this year, general insurance also has the lowest at 1.8 months, compared to the average bonus of 2.4 months of base salary.

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