The life insurance industry is poised for another healthy year after last year's robust 19.1% growth to 391 billion baht in gross premiums, says the Thai Life Assurance Association.
President Sara Lamsam yesterday projected growth of 17.4% to 459 billion baht this year.
New business premiums will come in at an estimated 162 billion baht, up by 24.2% from last year, and renewal premiums at 297 billion baht, up by 13.9%, he said.
The strong growth will come on the back of government tax rebates, regulator support and private company expansion.
Mr Sara said the new regulations by the Office of the Insurance Commission (OIC) regarding risk-based capital and requirements for financial information disclosure have strengthened people's trust in the insurance business.
The risk-based capital ratio represents the amount of capital based on risk assessment that a company should maintain to protect customers from adverse developments.
OIC regulations stipulate each insurer is required to maintain a capital-adequacy ratio (CAR) of at least 125% based on maintenance of risk-based capital.
The minimum CAR will increase to 140% for 2013-15.
Mr Sara said most life insurers have competed more over the past year in custom products tailored to people's different needs.
As well, they have increased their spending on marketing and public relations to educate the public about the diversity of life insurance policies.
Last year saw 152,800 new applications for life insurance agent licences, 10% more than in 2011. Of these, 51,200 passed the test and obtained a licence.