Double-digit premium growth in the insurance industry will be difficult to achieve going forward after the industry's premium contraction in January, says Muang Thai Life Assurance (MTL).
Single-digit growth in insurance premiums is anticipated from digital disruption, a stricter regulatory environment and a change in consumer lifestyles, said MTL president and chief executive Sara Lamsam.
"I agree that regulatory oversight is needed, but it will have an impact," Mr Sara said. "The insurance industry's total received premiums contracted for the first time in January."
Thailand is set to apply the Financial Sector Assessment Programme, which will require local insurance companies to be assessed under the Insurance Core Principles (ICPs) of the International Association of Insurance Supervisors.
The ICPs will assess the effectiveness of each local regulator and business operator to meet international standards.
Insurance companies' directors are also required to pay attention to quality control for the selling process and review the quality control system.
Mr Sara said portfolio revision is necessary for Thailand's insurance industry to prepare for new regulatory regimes such as Risk Based Capital 2 and International Financial Reporting Standard 17, which will be implemented in 2023.
MTL has been revising its portfolio for about two years. Revenue from insurance protection contributes 64%, up from 30-40% previously, while the portion of endowment and single premiums has declined.
"Market share or growth are not the only important factors anymore," Mr Sara said. "Business sustainability matters, along with an appropriate capital adequacy ratio, which supports long-term profit."
On Thursday MTL launched Extra Care Plus, an insurance ridership that provides lump-sum health care protection, a top-up from customers' existing medical welfare or health insurance.
Customers can pay additional healthcare riders of thousands of baht for medical coverage for up to 400,000 baht, without any advanced payment, at a network of more than 400 hospitals nationwide.