Explosive growth in Thai insurance industry predicted for 2024
The Thai General Insurance Association (TGIA) has foreseen an unprecedented surge in the insurance industry, with premiums expected to skyrocket to 303 billion baht in 2024.
The TGIA president, Somporn Suebthawilkul, revealed the industry’s trajectory, unveiling that premiums for the initial nine months of this year already hit a whopping 210 billion baht, marking a staggering 5.2% rise from the same period last year. The projections for the full year anticipate a robust 4 to 5% growth, amassing a colossal 285 billion baht in premiums.
But what’s the secret sauce behind this financial boom? Somporn predicts a dual force: the soaring popularity of electric vehicles (EVs) and the flourishing health insurance sector. With EV sales predicted to hit a monumental 100,000 units this year, it’s clear that the future is electric – and so is the insurance industry.
Somporn teased the anticipation of an even more lucrative 2024, riding on the back of sustained growth in the health and EV sectors. Travel insurance is also set to cash in on the continued rebound in tourism, making your next adventure not just thrilling but also well-insured.
“The industry improved this year as expected because of the economic recovery and smooth government transition, increased EV sales, and a rebound in both domestic and international tourism.
“All these factors have a positive impact on the industry, with good growth trends for various types of insurance.”
For petrolheads and road warriors, the revelation that motor insurance premiums surged to 118 billion baht in the first nine months of this year, a 6% year-on-year increase, is music to the ears. Car insurance policies are on the rise, and so are the average premiums per policy.
Fire insurance, with premiums rising by 2.1% to 7.76 billion baht, is blazing its own trail. Meanwhile, marine and shipping insurance faced a slight dip, down 0.6% to 5.33 billion baht due to slowing exports, reported Bangkok Post.
Miscellaneous insurance premiums grew by a solid 4.6% to 78.6 billion baht, while property risk insurance experienced an astonishing leap of 16.1%, reaching 25.9 billion baht.
Somporn acknowledged the challenges posed by evolving consumer behaviour and expectations. In response, the TGIA has been proactive, working to strengthen confidence among the insured and the public. Collaborating with relevant agencies, they are ensuring better protection and cracking down on unlicensed foreign insurance sales in Thailand.
