lEADING THE WAY
The life insurance industry has proven to be an attractive investment, particularly in a developing country such as Thailand. The expansion of the industry correlates with the growth of the overall economy. The 10-year compound annual growth rate for life insurance premiums is in the teens.
However, market penetration is low at 2.6% compared with more than 4% in Singapore and 9% in Japan. The life insurance density (premium per capita) is less than US$200 compared with those of Singapore and Japan, which are in excess of $2,000 and $4,000, respectively. Thailand is therefore a high-growth market for life insurance and has a promising future.
The Thai market continues to be dominated by the top three life insurers — AIA, Muang Thai Life Assurance and Thai Life Insurance, which together account for most of the market. The traditional agency channel remains the main distribution channel, while bancassurance continues to grow and is becoming increasingly more important. Results from this year’s first quarter showed the bancassurance distribution channel was slightly ahead of agency channels.
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