Industry hits 18% growth

INSURANCE

Thai insurance businesses performed strongly in the first three quarters of this year, generating 187.52 billion baht in premium income, up 18% over the same period last year.

The Thai Life Assurance Association attributed the gains to new product designs and effective sales of bancassurance via branches of commercial banks.

Bussara Ungphakorn, the association's director, said the industry has also benefited from government encouragement of long-term savings through life insurance by doubling the premium amounts that can be deducted from personal taxable income to 100,000 baht a year.

The growth is also in line with economic improvement, she said.

"We expect the life business will continue to grow at the same pace, pushing up premium income for the entire year to 254.74 billion baht, up 15% year-on-year," Mrs Bussara said.

Out of total premiums received in the first nine months, new business premiums were up 29% to 64.2 billion baht, and renewal premiums rose 13% to 123.32 billion.

Of the new business premiums, first-year premiums rose 26% to 41.3 billion while single premiums rose 36% to 22.9 billion baht.

American International Assurance (AIA) led the industry with 61 billion baht in premium income for a 33% market share. It was followed by Thai Life Insurance with 26.22 billion and a 14% share, Muang Thai Life Assurance with 15.89 billion (8%), Siam Commercial New York Life with 14.68 billion (7.83%), and Bangkok Life Assurance with 14.52 billion and a 7.74% share.

Mrs Bussara said insurers planned more new products to promote the industry in the near future including pension policies to serve the growing ageing population.

An AIA executive said that AIA Universal Life, which offers high flexibility and guaranteed minimum returns, had posted impressive results since their launch early this year.

From March to September this year, the company signed up more than 40,000 new policies or 1.1 billion baht in first-year premiums, said Sataya Tepbunterng, general manager for agency distribution of AIA Thailand.

The insurer is the only company in Thailand to offer universal life to date.