Total life insurance premiums grew 3.25% year-on-year to 196 billion baht in the first four months this year, thanks to 41.7% growth in single premiums requiring buyers to make a one-time payment.
The growth was also spurred by a 10% uptick in newly acquired businesses, while first-year premiums dropped 6.35% year-on-year.
Sara Lamsam, president of the Thai Life Assurance Association (TLAA), said single premiums were worth 31.1 billion baht in the first four months, driven by universal life and unit-linked insurance in which policyholders can earn higher investment returns, growing 103% to 14.5 billion baht.
Endowment insurance sales also grew, which is a life insurance contract that pays out after a specific term, as did mortgage insurance, which pays off a mortgage loan if the borrower defaults on payment.
The performance exceeded projections, growing 1% after TLAA predicted in February total premiums received would contract by 1%.
Single premiums were predicted to range from a 10% contraction to flat growth, instead reporting a gain 41.7%.
Health protection and critical illness products picked up 5.77% to 32 billion baht in the first four months, spurred by medical concerns arising from the pandemic.
Pension insurance, an insurance paid out at retirement age, also grew 8.57%.
First-year premiums, which are received in the first year for regular insurance types, declined by 6.35% to 31.1 billion baht.
Renewal year premiums accounted for 139 billion baht, growing 0.63%, with a persistency ratio of 81%.
Agent channels contributed 46.6% of total life insurance premiums, followed by bank branch networks or bancassurance, whose contribution grew by 6.7 percentage points to 42.8%. Telemarketing contributed 2.44%.
Total premiums for the whole year are expected to reach 590-610 billion baht, with a persistency ratio of 81-82%.
In 2020, total premiums stood at 600 billion baht, falling 1.75% year-on-year because of the pandemic.
Last year, the pandemic also affected new businesses. Insurance premiums from both single premium products and regular products (first-year premiums) declined, while renewal premiums grew.
Mr Sara said challenges this year include the continued economic slide, rising Covid-19 infections, low interest rates, an ageing population, new regulations such as the Personal Data Protection Act and international financial reporting standards.