Thailand Insurance Market Intelligence: 2011 Edition
The Thai insurance market is one of the smallest in addition to being one of the fastest growing markets in Asia. The industry has recorded a growth during the period when the whole economy was facing the crisis. This growth is mainly attributed to the increased awareness about insurance products and the tax incentives offered by the government.
The country is relatively underdeveloped in terms of insurance penetration yet the Thai insurance sector is poised for strong growth on the back of increased economic activity. The bancassurance marketing has also proven helpful in shaping the Thai insurance sector. Life insurance segment dominates the insurance industry of Thailand, accounting for 70% of the total market share. AIA is the major life insurer and it was the first foreign-owned insurance company to enter the country.
Although political instability remains a worry for the growth of the sector, rising urban population, improving living standard, rising demand for automobiles are anticipated to serve as major growth drivers for the Thai insurance industry. The huge untapped rural population is another growth opportunity for the insurance sector. All these factors, coupled with high saving rates, strong economic growth, rising aging population, increasing investments in property etc. would continue to boost the Thai insurance industry in near future.
The country is relatively underdeveloped in terms of insurance penetration yet the Thai insurance sector is poised for strong growth on the back of increased economic activity. The bancassurance marketing has also proven helpful in shaping the Thai insurance sector. Life insurance segment dominates the insurance industry of Thailand, accounting for 70% of the total market share. AIA is the major life insurer and it was the first foreign-owned insurance company to enter the country.
Although political instability remains a worry for the growth of the sector, rising urban population, improving living standard, rising demand for automobiles are anticipated to serve as major growth drivers for the Thai insurance industry. The huge untapped rural population is another growth opportunity for the insurance sector. All these factors, coupled with high saving rates, strong economic growth, rising aging population, increasing investments in property etc. would continue to boost the Thai insurance industry in near future.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Supervised and controlled by Ministry of Finance
1.1.2 Foreign ownership is capped at 49% in joint ventures with local insurers
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Increased product awareness, tax incentives and aggressive marketing increased demand for insurance products
1.2.1.2 Increase of 7.5% in overall premiums in 2009 over 2008
1.2.2 Market Segments
1.2.2.1 Life insurance sector as Asia’s 8th largest and world’s 32nd largest in 2009
1.2.2.2 Raising of Tax deduction on life insurance increase demand
1.2.2.3 Motor and fire as largest segments of non-life insurance sector
1.2.3 Market Density & Penetration
1.2.3.1 Low Per Capita Insurance Expenditure Due to Poor Rural Areas Reach
1.2.3.2 Low Insurance Penetration Rate, on a Decline Recently
1.2.4 Market Share
1.2.4.1 Concentrated nature of life insurance sector
1.2.4.2 Highly fragmented and competitive non-life insurance sector
1.2.4.3 Viriyah Insurance as undisputed leader in automobile insurance segment
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Thai Regulator Seeks Further Tax Breaks for Insurance Business
Repackaged Terrorism Insurance Policy
2.2 Market Drivers
Strong economic growth
Huge Untapped Rural Markets
Increasing demand for automobiles
Increase in real estate transactions
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Factors like the high savings rate, strong economic growth and ageing population driving premiums growth
4.2 Life products favored as savings products and tax incentive benefits
1.1 Industry Structure
1.1.1 Supervised and controlled by Ministry of Finance
1.1.2 Foreign ownership is capped at 49% in joint ventures with local insurers
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Increased product awareness, tax incentives and aggressive marketing increased demand for insurance products
1.2.1.2 Increase of 7.5% in overall premiums in 2009 over 2008
1.2.2 Market Segments
1.2.2.1 Life insurance sector as Asia’s 8th largest and world’s 32nd largest in 2009
1.2.2.2 Raising of Tax deduction on life insurance increase demand
1.2.2.3 Motor and fire as largest segments of non-life insurance sector
1.2.3 Market Density & Penetration
1.2.3.1 Low Per Capita Insurance Expenditure Due to Poor Rural Areas Reach
1.2.3.2 Low Insurance Penetration Rate, on a Decline Recently
1.2.4 Market Share
1.2.4.1 Concentrated nature of life insurance sector
1.2.4.2 Highly fragmented and competitive non-life insurance sector
1.2.4.3 Viriyah Insurance as undisputed leader in automobile insurance segment
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Thai Regulator Seeks Further Tax Breaks for Insurance Business
Repackaged Terrorism Insurance Policy
2.2 Market Drivers
Strong economic growth
Huge Untapped Rural Markets
Increasing demand for automobiles
Increase in real estate transactions
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Factors like the high savings rate, strong economic growth and ageing population driving premiums growth
4.2 Life products favored as savings products and tax incentive benefits
LIST OF CHARTS:
Thailand Annual Insurance Premium: 2002-2009
Thailand Insurance Premium Share (%) by Segment – 2009
Thailand Insurance Premium by Segment – 2002-2009
Thailand Life Insurance Premium Share (%) by Segment – 2009
Thailand Non-Life Insurance Premium Share (%) by Segment: 2009
Thailand Insurance Density (US$): 2002 – 2009
Thailand Insurance Penetration: 2002 – 2009
Thailand Major Life Insurers’ Market Share: 2009
Market Share of Direct Premiums of Non-life (Automobile) Insurers: Jan-Feb 2010
GDP Growth of Thailand: 2001 – 2009
Urban Population of Thailand: 2002-2009
Rural Population of Thailand: 2002-2009
Motor Sales (Thousand Units): 2002 – 2009
Thailand: New Housing Registrations in Bangkok and Vicinities: 2001 – 2009
Forecast: Thailand Insurance Industry: 2009A – 2013E
Forecast: Thailand Life & Non-Life Insurance Industry: 2009A – 2013E
Thailand Annual Insurance Premium: 2002-2009
Thailand Insurance Premium Share (%) by Segment – 2009
Thailand Insurance Premium by Segment – 2002-2009
Thailand Life Insurance Premium Share (%) by Segment – 2009
Thailand Non-Life Insurance Premium Share (%) by Segment: 2009
Thailand Insurance Density (US$): 2002 – 2009
Thailand Insurance Penetration: 2002 – 2009
Thailand Major Life Insurers’ Market Share: 2009
Market Share of Direct Premiums of Non-life (Automobile) Insurers: Jan-Feb 2010
GDP Growth of Thailand: 2001 – 2009
Urban Population of Thailand: 2002-2009
Rural Population of Thailand: 2002-2009
Motor Sales (Thousand Units): 2002 – 2009
Thailand: New Housing Registrations in Bangkok and Vicinities: 2001 – 2009
Forecast: Thailand Insurance Industry: 2009A – 2013E
Forecast: Thailand Life & Non-Life Insurance Industry: 2009A – 2013E
LIST OF TABLES:
Property & Casualty Insurance Premium – 2002-2009
Thailand: HPI & Growth: 2002 – 2009
Key Macroeconomic Indicators: 2008 – 2013F
Property & Casualty Insurance Premium – 2002-2009
Thailand: HPI & Growth: 2002 – 2009
Key Macroeconomic Indicators: 2008 – 2013F
