Thai market continues to lose momentum

June 16 2017 by InsuranceAsia News Staff

Thailand’s life and property-and-casualty premium growth slowed for the fourth year in a row to 3.9% in 2016, according to Allianz Economic Research.

The market has been losing momentum since 2012, but even so, Allianz said premium income now accounts for 4.9% of the country’s gross domestic product.

This puts Thailand on par with Germany in terms of insurance market penetration. The life market makes up 70% of total insurance premium income in Thailand. So far this year, the country’s life growth picked up slightly to 6.6%.

Heise said property/casualty growth could be spurred if the country’s economy recovers. The average growth of the P&C sector could then hit 7.5% a year until 2027, Heise added.

Allianz Economic Research also noted that while the share of life insurance and pension assets continue to rise, bank deposits still dominate Thai households’ financial assets portfolio, accounting for 42%.

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