Thailand’s insurance sector embraces digital revolution to boost resilience and consumer experience

Thailand’s insurance sector is adopting digital tech to tackle artificial intelligence (AI) and cyber threats and deal with the medical costs of the nation’s ageing population. Further steps were taken to boost industry strength and user experience.

The strategy is headed by the Office of the Insurance Commission (OIC). Suthiphon Thaveechaiyagarn, the OIC secretary-general, disclosed that the first part of 2023 saw the insurance field expand by a higher-than-anticipated 4.81%. He further observed that this growth pattern reflects rising consumer awareness of the importance of health and property risk mitigation.

“In the past, some companies pursued unsustainable policies, notably Covid-19 insurance lump-sum payout policies, which focused on mass sales, but ultimately were forced to cease as sales exceeded underwriting capacity. This is deemed unsustainable.”

He shared OIC’s interest in strengthening insurance through tech, improving what we offer customers. This means digital policies for less paper, and AI for clear claims, boosting the industry.

Suthiphon blends sustainability and tech, data for improved products. This aids risk management and smarter customer service. Sara Lamsam, Thai Life Assurance Association President, noted insurance can embrace sustainability, following ESG principles.

Sara proposes using premiums for green investments, aiding the environment. Insurers enhance accessibility with affordable coverage like micro-insurance for social concerns.

“Consumer behaviour is changing as people demand more customised services.”

Leveraging Information technology to create insurance plans that focus on customers’ needs at the sub-community level is key to maintaining their interest.

Sara cited examples such as big bike drivers and residents residing in regions with high PM2.5 levels as sub-communities with unique risk profiles.

“The world of insurance today is not merely about selling, but instead recommendations or prescriptions that truly meet the needs of each customer in a unique way.”

Sara underlined the importance of technology, including AI and data analytics, for analysing substantial data quantities to formulate tailor-made products that customer desire.