Grow in Golden Dragon Year
The Prime Minister of the Thai Life Assurance Association 'revealed' the expected growth rate of the life insurance business in 2024 at 2.0 - 4.0 percent, in line with the economic expansion rate (GDP). The Office of the National Economic and Social Development Council has projected 2.2 - 3.2 percent along with factors. Support from the trend of health lovers Total insurance premiums in 2023 grow 3.61 %, forecast in 2024 to grow 2 - 4 %.
Mr. Sara Lamsam, President of the Thai Life Assurance Association, revealed that the overall life insurance business of 2023 between January - December had total premiums of 633,445 million baht, growing by 3.61 percent compared to 2022, classified as income premiums. New Business Premium 178,470 million baht, a growth rate increasing 5.06 percent and next year's premiums (Renewal Premium) 454,975 million baht, a growth rate increasing 3.06 percent. For new business premiums, it consists of 1.) Premiums earned First Year Premium: 112,377 million baht, growing by 6.83 percent. 2.) Single Premium: 66,093 million baht, growing by 2.18 percent.
Classified total written premiums by distribution channel as follows: 1. Sales through life insurance agent channels (Agency), total written premiums were 338,920 million baht, the growth rate increased by 4.21 percent compared to 2022, representing a proportion of 53.50 percent 2 . Selling through bank channels (Bancassurance) Total insurance premiums are 239,112 million baht The growth rate increased by 1.41 percent compared to 2022, accounting for a proportion of 37.75 percent. 3. Selling through the life insurance broker channel (Broker), total insurance premiums are 30,808 million baht The growth rate increased by 16.19 percent compared to 2022, accounting for a proportion of 4.86 percent. 4. Sales through digital channels (Digital) Total insurance premiums were 1,930 million baht. The growth rate increased by 11.07 percent compared to the year. 2022, accounting for 0.305 percent. Sales through other channels (Others) such as sales of Worksite, Walkin, sales through booths, sales through convenience stores, Direct Mail, Tele Marketing, etc. Total insurance premiums are at 22,676 million baht. The growth rate increased by 2.58 percent compared to 2022, representing a proportion of 3.58 percent.
Life insurance products that are popular and have an increased growth rate in 2023 are additional health insurance contracts and critical illness coverage. with total insurance premiums of 109,786 million baht, an increase of 5.93 percent, accounting for a share of 17.33 percent, which mainly comes from people paying attention to their health and becoming more aware of the importance of having health insurance. To manage risk and cope with medical expenses that tend to increase (Medical Inflation), while pension life insurance products have received a lot of attention from the public. This is due to Thailand fully entering into an aging society. In addition, people are becoming more aware of the importance of financial planning during retirement. Because in addition to being a type of savings that has low risk, They also receive life protection and tax deduction rights from the government supporting tax deduction measures. As a result, pension life insurance products in 2023 have total premiums of 17,986 million baht, growing by 14.26 percent. or equivalent to 2.84 percent
In 2024, the Thai Life Assurance Association has estimated the growth rate of the life insurance business to be in the range of 2.0 - 4.0 percent, which is in line with the economic growth rate (GDP) in 2024 that the National Economic and Social Development Council has projected. It is estimated at 2.2 - 3.2 percent. There is also a supporting factor from the trend of people who love health. This is due to people becoming aware of the impact of emerging diseases such as the new strain of COVID-19. and more pollution from PM 2.5 dust, including the trend of increasing medical expenses As a result, people turn to paying attention to their health and have more health insurance. Including Thailand entering into an aging society, policies supporting the use of technology by businesses such as AI and Data Analytics to increase competitiveness. Increase operational efficiency and support in every process in the life insurance business From developing products that meet needs, offering sales, considering underwriting. consideration of claims to the delivery of services and after-sales transactions related to the policy In order to raise the level of satisfaction of the insured.
At the same time this year The life insurance business still needs to follow trends. and volatility of the economic situation both within the country and the world economy closely, especially regarding interest rates Inflation situation and the Thai stock market that affects savings, investment, and spending of the public sector Including the need to follow the situation of trade wars or international conflicts. Climate change and emerging diseases Because it directly affects the needs and confidence of the public sector in the life insurance business.
Therefore, the Thai Life Assurance Association has a plan to prepare for all challenging factors. By applying the concept of sustainable organizational development (ESG) to investment consideration and operations that take into account ESG responsibilities in all 3 areas: Environment, Society, and Governance. To make the life insurance business more sustainable
The association has a policy to develop new types of life insurance products. and support in bringing technology and innovation to develop various processes of the life insurance business. To raise the level of satisfaction and increase the confidence of the insured There is promotion of educating the public, such as the knowledge of technology and cyber threats. To help protect the interests of the insured Including having a proactive policy to update various regulations to be up to date, with the association being the central point in coordinating
Mission in the form of meetings, discussions and listening to opinions between life insurance companies and regulatory agencies. Including setting up a sub-working group chaired by the association's executive committee to closely monitor progress. as well as pushing the system for organizing examinations and knowledge training Life insurance agent licensing system in electronic form to facilitate both member companies and the general public who are interested in applying to enter the life insurance agent career path.
Importantly, the Thai Life Assurance Association has a policy aimed at each life insurance company. There are business practices that consider comprehensive risk management and management. both before and after receiving insurance and have a financial position with a risk-based capital adequacy ratio (CAR Ratio) higher than the capital level that must be maintained according to the specified criteria (Supervisory CAR) so that the insured can be confident that Life insurance companies can fulfill their obligations under every insurance policy issued to the insured. and ready to provide protection to the insured until the contract expires As can be seen in the 3rd quarter of 2023, from information on the website of the Office of the Insurance Commission (OIC), the life insurance sector has a risk-based capital adequacy ratio. is at 350 percent, which is higher than the capital adequacy ratio used for supervision (Supervisory CAR). We therefore request that all insureds be confident that the life insurance business is stable and strong.
Be strong and adhere to promises according to the obligations in every life insurance policy issued to the insured. President of the Thai Life Assurance Association said
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