Life insurance premiums in Thailand shrank in the first half of this year, the first decline in 10 years.
Although the picture in the second half of the year has improved, there is still limited recovery from the various challenges, according to an analysis by Kasikorn Thai Research Centre.
The centre notes that for the first six months of this year, life insurance business contracted by 6%.
Data from the Thai Life Assurance Association show that total life premiums (new business and renewal business) fell to THB295.6bn ($9.7bn) in 1H2019 compared to THB314.5bn in 1H2018.
It said that the 2H recovery might not be enough to pull the business back to positive territory for the full year this year.
Kasikorn Thai Research Centre expects the growth rate of life insurance premiums this year as a whole to be flat at 0 or to decrease by up to 3%.
The decline is attributed to new accounting standards, changing technology and fierce competition from new players. These mean that the insurance sector has to manage its costs with care.
As basic economic factors gradually improve and consumers are aware of the need to protect their lives, coupled with insurance companies designing products that can respond to the needs of various customers, the life insurance business is expected to grow in the medium to long term, even though premiums might not increase at double-digit rates as in the past.
Check this out:
Success secrets of modern insurance agents
Building a modern agency
You can have the world at your fingertips - Matsee Lamsun, Asia's Top 5 Digital Agent of the Year
Subscribe to our complimentary weekly newsletter to get the latest tips and inspiration: http://bit.ly/AANnewsletter