Thailand's life insurance market grew 7% in 1H2017, counting THB297.6 billion (US$8.9 billion) in total premiums according to the Thai Life Assurance Association's latest data, reported A.M. Best.
Muang Thai Life inched past AIA to take the spot of largest life insurer with THB57.9 billion in total premiums, against AIA’s THB57.8 billion. Thai Life was third-biggest with premiums of THB38.6 billion, with the three accounting for a combined market share of 52%. Distribution saw a relatively even split between bancassurance (48%) and agency (46%), while other channels including direct marketing accounted for the remaining 6%.
New business premiums accounted for 28% of the total premiums at THB82.9 billion, higher than last year’s THB80.7 billion. Renewals comprised the rest with premiums amounting to THB214.6 billion, up 8% from THB197.8 billion in 2016, said Best’s New Service.
The Office of Insurance Commission (OIC) said it expects the Thai insurance market to grow by 6% this year, driven by the economic growth stimulus of the government and a rise in domestic spending. It estimated combined insurance premium in 2017 to pass THB824 billion, with life premiums seen to grow by 7.6% to more than THB600 billion and non-life premiums to increase 1.6% to more than THB200 billion.