The insurance industry is projected to grow by 1.5-2.5% next year to achieve total premiums of around 291-294 billion baht, supported by economic and tourism recovery, said the Thai General Insurance Association (TGIA).
In the first nine months of 2024, the non-life insurance sector recorded total premiums of 209 billion baht, edging 0.5% lower from the corresponding period of 2023.
For the whole of 2024, the industry is projected to grow by 1% with premiums reaching 285-288 billion baht.
This modest growth is attributed to several factors, including a sluggish economy, high household debt, structural changes within the industry, the impact of climate change and the country's transition to an aged society.
TGIA president Somporn Suebthawilkul said the estimated performance for 2024 reflects ongoing economic challenges and uncertainties.
However, the growth of health insurance and increased public awareness of natural disaster risks remain key drivers that underpin the future expansion of the industry.
Most insurance categories showed minimal growth during the first nine months of the year compared with the same period last year. The exception was fire insurance, which grew 7.3%, with total premiums reaching 8.3 billion baht.
On the other hand, motor insurance was down 1.3% with premiums of approximately 117 billion baht, driven by a 26% drop in new car sales and a decline in average premiums.
Marine and transportation insurance saw premiums decrease 2.1% to 5.2 billion baht due to lower export volumes.
By the end of the third quarter, the non-life insurance industry reported an overall loss ratio (LR) of 56.9% across all types, which was particularly notable in the categories of motor insurance, health insurance and all-risk insurance.
By category, specific LR stood at 61.7% for motor insurance, 23.7% for fire insurance, 30% for marine insurance, 50.9% for miscellaneous insurance, 44% for all-risk insurance, 32% for legal liability, 48.8% for personal accident insurance, 65.5% for health insurance, 32.8% for travel insurance and 40.9% for other forms of insurance.
"2025 represents new hope for the recovery of the non-life insurance industry, on the back of the global economic rebound, particularly in developing countries, and the adoption of digital technology or InsurTech, which helps reduce costs, improves efficiency and makes it easier to reach customers," said Mr Somporn.
Moreover, there is increasing awareness of emerging risks, such as worsening natural disasters caused by climate change, the growing importance of cyber risk management for organisations at all levels and the intensifying competition within industry.
These factors necessitate the continuous development of products to meet evolving customer needs, he added.
Fire insurance is expected to attract greater attention next year, along with travel insurance, buoyed by positive factors such as the appreciation of the baht and government initiatives to stimulate the tourism sector.
Mr Somporn noted that non-life insurance plays a vital role in helping individuals and businesses manage risks. It provides both financial protection and long-term stability by adapting to evolving circumstances and introducing new products tailored to customer needs.
"Our industry's role is not merely a risk management tool but a key pillar that fosters economic stability and paves the way to a sustainable future."
