Bangkok Life Assurance (BLA) is on track to achieve total premiums of 35.8 billion baht this year, on par with the tally in 2021, but the outlook for next year remains uncertain given the projection of slow growth for the global economy.
President and chief executive Chone Sophonpanich said BLA's premiums amounted to 30.2 billion baht in the first 10 months of 2022, down 1.2% year-on-year, but first-year insurance premiums expanded 5.5%.
Total premiums for the market slipped 0.5% during the period to 487 billion baht. BLA ranks sixth in the life insurance business.
The company's first-year premiums via banks and digital platforms rose by 12.4% and 84.9%, respectively, while sales through brokers dropped 9.3%.
"We are confident our first-year premiums will expand 10% this year to 6.9 billion baht," Mr Chone told a press conference in Hua Hin.
A decline in insurance enrolment among Thai consumers is possible because of the impact of a global recession on the Thai economy in 2023, he said.
"For three years the Thai economy stagnated. If the trend continues to persist for four or five years, consumers' ability to enrol in a new insurance plan and their payment ability for current plans will be affected," said Mr Chone.
Despite the impact of a possible global recession next year, he said he was optimistic about the overall insurance industry, especially the health insurance market, which has been making good progress, boosted by increasing trust among consumers.
BLA aims to expand its sales agent network, adding another 3,000 agents in 2023 on top of about 2,000 added this year, said Mr Chone.
"The Office of the Insurance Commission has established a new health insurance standard that bars insurers from revoking their contracts unless fraud is verified," he said.
"This has given consumers greater assurance."
Consumers also have better access to information and are conducting thorough research on policies by themselves, said Mr Chone.
"Health insurance policies with costly premiums add to household expenses," he said.
"Consumers will look for a policy that is worth the value."