Life assurance premiums are expected to expand 13% this year, underpinned by the economic recovery and improved political sentiment, says the Thai Life Assurance Association.
President Sara Lamsam said the industry’s total written premiums would reach 570 billion baht at the end of this year, based on the assumption that the country’s GDP growth would come in at 3.9%.
The insurance agent channel is expected to grow at a fast clip this year.
Applications for licences to become life assurance agents are estimated to reach 265,000, up 15% from last year.
The government plans to launch a public hearing to amend related rules and regulations to offer greater flexibility to the life insurance business. Rising demand for life protection products has encouraged insurers to introduce new products, while tax deduction for long-term life insurance products has also boosted demand.
The association is in talks with the Office of Insurance Commission and related parties to allow premiums paid for health insurance to be tax deductible, Mr Sara said.
The life insurance industry delivered 13.7% premium growth last year despite a string of uncertainties from political tensions, the slow global economic turnaround and weak private consumption.
Total written premiums at the end of last year amounted to 504 billion baht, of which first-year premiums accounted for 171 billion and renewal premiums made up the rest.
First-year premiums grew 14.9% over the same period a year before.
Assurance agents remained the largest distribution channel, dominating 51.6% of total written premiums for 2014. Premiums sold through the channel grew 7.5% last year.
Bancassurance was the second largest channel, contributing 41.9% of total premiums with solid growth of 22.4% year-on-year.