The Office of the Insurance Commission (OIC) has partnered with insurance firms to launch a "new normal plus protection for accidents and Covid-19" plan as a micro-product for those concerned about risks related to the pandemic.
As the pandemic continues to capture interest, regulators and insurers have launched the product as a marketing strategy to make insurance more relevant to people's daily lives, while helping to boost the industry.
The new product is expected to increase sales during the pandemic, with insurance companies providing protection for a price of 10 baht during the New Year period from December to January 2021, said Suthiphon Taveechaiyagarn, the OIC secretary-general.
Micro-insurance has been available in Thailand since 2013, with a starting price of about 200 baht. The aim is to promote understanding of insurance and risk management, among both urban and rural dwellers, he said.
In 2019, two-month micro-insurance protection during the New Year period was sold to over 1.3 million people, a drop from more than 2 million people in 2018.
"Covid-19 insurance can expand coverage of existing products. For 10 baht, companies can buy protection for their employees or customers," said Mr Suthiphon.
Coverage in case of permanent disability from accidents or death is 100,000 baht, excluding murder. Permanent disability due to motorcycle accident receives payment of 50,000 baht.
The insurance offers 5,000-baht coverage for funeral expenses and medical expenses due to accidents, with 3,000 baht for Covid-19 insurance protection.
He said people can form a group of 10 to purchase micro-group insurance from 15 non-life insurance and 10 life insurance companies.
Some 24 companies are offering the new-normal plus micro-insurance, including banks, insurance brokers, retailers, online e-commerce platforms, property developers and telecommunication companies.
OIC data found direct premiums for life insurance shrank by 5.72% during the first three quarters this year, with group insurance down 9.8%. The only life insurance products that recorded growth were pension, universal life, health riders and accident riders.
For non-life insurers, total direct premiums grew by 3.87%, spurred by health protection, up 60% for the same period year-on-year to 12.8 billion baht. Travel insurance shrank by 61.4%.
