Auto policies expected to be cheaper
Thailand's auto insurance trends next year are leaning towards a direct-to-consumer model and personalised plans that could save consumers up to 40% of the cost of a traditional plan following a shift in consumer behaviour during the pandemic, according to search engine Priceza Money.
Priceza Money, a Bangkok-based platform that provides price comparisons of insurance and credit cards for consumers, recently revealed emerging auto insurance trends among consumers.
The company's head and co-founder, Siravit Chayavanich, said more consumers have begun to seek alternative policies that suit their journeys and driving habits since the outbreak of Covid-19.
"People feel they should not pay a higher premium if their cars are mostly kept in the garage," he said.
Data on the price comparison site, which has an average monthly reach of 100,000, indicated personalised auto insurance from Dhipaya Insurance's subsidiary TIP Insure gained popularity among consumers during 2020, surging by 211%, up from 20.9% in 2019.
The majority of users on the site were city car owners.
Mr Siravit said consumers could expect cheaper auto insurance offers in 2023, with the average fee expected to be 30-40% less than traditional plans.
"Some companies offer a coverage plan based on how many miles they drive. The less they drive, the lower the premium," he said.
Another significant shift in the country's insurance market is more consumers are buying insurance online.
According to statistics from the Office of the Insurance Commission, the number of consumers buying insurance online surged 223% in 2020, compared with 43.3% growth in 2019.
Last year, the figure dropped to 33.9% growth, though this is still higher than the level recorded before the pandemic.
Many insurance firms seized this opportunity to make direct sales to consumers on their platforms, discarding the typical assistance offered from brokers in the past.
"Insurers usually depend on brokers 90% of the time when it comes to sales," said Mr Siravit.
"The direct sales model allows them to sell directly and reduce customer premiums by removing the commission, which may be about 20%."