Thai life market growth to slow in 2017

December 22 2016 by InsuranceAsia News Staff

The low-interest-rate environment and subdued growth trajectory of Thailand’s economy are among the headwinds that will keep the country’s life insurance market growth to less than 10% next year.

The Thai Life Assurance Association’s forecast for growth in gross premium income this year is just 7% instead of the forecast of 9%. 2017 is expected to be broadly similar as this year.

Association president Nusara Banyatpiyaphod said that gross income this year is expected to reach Bt540 billion (US$15 billion), but there aren’t enough positive factors to further raise the total gross income next year.

The association has not released its specific forecast for premium-income growth for 2017 yet, but it expects only single-digit growth due to high household debt and an economic slowdown.

These are adversely impacting on people’s decision to buy an insurance policy.

Still, with the life insurance penetration rate in Thailand currently at 38%, the association believes there is still room for growth.

Banyatpiyaphod also said that the ageing of the population and health-conscious trends will make health insurance a hot product in 2017.