Thailand insurance industry to be worth $11bn by 2027

Written by Michael Griffiths

27/06/2023

The general insurance industry in Thailand is to grow at a compound annual growth rate (CAGR) of 5.7% over the next five years, GlobalData has stated.

According to the analytics company, the Thai insurance space is projected to grow from THB 285.5bn ($8.1bn) in 2023 to THB 373.5bn ($11bn) in 2027, in terms of gross written premiums (GWP).

This includes growth of 4.9% in 2023 and 4.8% in 2024, supported by a recovery in vehicle sales, infrastructure projects undertaken by the Government, and increasing demand for natural catastrophic insurance.

Insurance analyst at GlobalData, Sneha Verma, commented: “The COVID-19 pandemic impacted insurance industry growth in Thailand, slowing it to 3.4% in 2020. However, with a recovery that started in 2021, the industry is expected to surpass its pre-pandemic growth level in 2023.

“It is expected to reach a full recovery by 2025, supported by property and motor insurance, which will be the fastest growing general insurance lines in 2023.”

Motor insurance is the leading line in the Thailand general insurance market, accounting for 54.8% share of the GWP in 2022. The segment is forecast to grow by 5.6% in 2023, driven by an increase in the sales of motor vehicles.

Personal accident and health (PA&H) is the second largest line, after it accounted for 18.4% share of the general insurance GWP last year. Its growth slowed down to 5.2% in 2022, against 8.1% growth in 2021, due to a rise in medical inflation.

Property insurance accounted for 16.8% share of the general insurance GWP last year and is forecast to grow by 9.5% in 2023, supported by major construction projects initiated in Thailand during Q1 this year.

Verma added: “Additionally, the government is taking initiatives to increase motor insurance awareness and ensure that all vehicles have compulsory motor insurance.

“On April 21, 2023, the Office of Insurance Commission (OIC) and the Department of Land Transport jointly launched a digital data-linking system to verify compulsory motor insurance policies at the time of paying vehicle tax annually. The new system will increase compliance and support motor insurance growth in Thailand.”

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