Regulator picks premiums to hit B1tn this year
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Regulator picks premiums to hit B1tn this year

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Mr Chuchatr says overall insurance premiums could hit 1 trillion baht this year as life and non-life policies continue to expand.
Mr Chuchatr says overall insurance premiums could hit 1 trillion baht this year as life and non-life policies continue to expand.

Life and non-life insurance businesses should expand this year, driving the industry's overall premiums to 1 trillion baht if economic growth continues, says the Office of the Insurance Commission (OIC).

In the base-case scenario, insurance premiums tally 970-980 billion baht, similar to the 2024 figure, said Chuchatr Pramoolpol, secretary-general of the OIC.

The largest proportion of total premiums will come from health insurance, while savings life premiums are also expected to increase, he said. Investment-linked life insurance has started to soar along with auto insurance as electric vehicles become more popular, said Mr Chuchatr.

He said the OIC is preparing to review the coverage and premiums for the new compulsory motor insurance, which will affect 30 million car owners nationwide.

The change is meant to reflect economic conditions and the significant increase in medical expenses to create fairness for all parties involved and enable insurance companies to survive, said Mr Chuchatr.

Thailand has the highest number of car accidents in the world, with 400,000 claims under motor insurance policies per year.

He said actuaries are being asked to calculate insurance premiums under various assumptions, such as increasing coverage only for insured parts, higher disability coverage, raising medical coverage, and other related matters.

Insurance premiums under the Compulsory Motor Insurance Act range from 161.57 to 645.21 baht per year, depending on the size of the car.

The rates for taxis, public vehicles and rental cars are higher, with motorcycle taxis costing 323.14 to 430.14 baht per year and cars costing 645 to 1,182 baht per year, depending on the type of car.

In the case of death, compensation is 500,000 baht per person. For injury, up to 80,000 baht in actual medical expenses can be claimed per person.

In the case of disability, compensation is 200,000 baht per person, while inpatients receive compensation of 200 baht per day not exceeding 20 days.

The OIC previously revised health insurance conditions to align with higher medical expenses, which increased by 8-15% annually in recent years. The co-payment scheme is scheduled for implementation from the beginning of next month.

"The OIC has a duty to protect and promote the benefits of all concerned parties," said Mr Chuchatr.

"We are trying to promote insurance companies having more investment channels and adjusting the policy approval criteria to meet consumer needs."

The distribution channels of insurance policies, both via agents and online, have improved, with more digital systems used to drive sales, he said.

Regarding the OIC's operational plan this year, the regulator will continue to focus on the stability of insurance firms, said Mr Chuchatr.

The OIC plans to supervise insurance companies through its Early Warning System, which is an in-depth supervision and analysis of their financial status.

If any weaknesses are found, the OIC can offer advice to these firms.

In contrast, if a company has strengths, he said the regulator can provide investment advice or policies that are more diverse and faster to implement.

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