The Insurance Bill was passed in the National Assembly on July 25, 2010. It is expected to benefit the insurance industry in Thailand.
The basic framework of insurance in Thailand is built upon compulsory insurance covering risks that can threaten the economic welfare of all of society, such as accidents, natural disasters, liabilities for damages caused by negligence, etc.
In addition, there are specific insurance products to protect the financial security of individuals and businesses, such as short-term insurance policies, insurance against floods, insurance on loans, insurance on housing, etc.
The Commission for Public Information explains the process of applying for insurance by verifying identity, taking out an insurance policy, making a claim, issuing a receipt for insurance payments and verifying the veracity of the person applying for insurance.
A wide range of Insurance Policies
Thailand offers a wide range of car insurance policies for individual and businesses that cover risks, such as incidents with an insured car, losses caused by accidents, damages caused by floods, theft, fire, flooding, etc.
The key consumer indicators to assess insurance risk in Thailand, for both individuals and businesses, including the frequency of risk occurrences and costs incurred, insurance coverage with premiums and insurance coverage duration.
Thailand has approximately 11 million private insurance policies. They cover both risks with premiums and costs and protection periods of two or more years. In addition, approximately 64% of Thailand’s insurance policyholders are in Thailand’s top 10 insurance districts.
Exam season in Thailand usually starts from mid-April. In this case, insurance companies are very strict with the insurance exams. Insurance exams determine if individuals have the correct knowledge to take out insurance products. Exam season in Thailand normally lasts for around three months. The companies are more strict with people’s application for insurance because it is exam season. About 15% of Thai employers and 50% of students prepare for insurance exams by taking several courses, in order to enhance their knowledge in insurance. Students typically attend two or more classes, at their own cost, in order to prepare for exam day.
Thailand’s large scale insurers are Royal Insurance Public Company (RIPS) and Thai Life Insurance Public Company (TLIC). Insurance premiums in Thailand are expected to rise steadily from 2020, with four major factors contributing to the growth. These factors are in relation to competition between insurance companies, the economic health of the country, investment for insurance policies and the insurance products to be sold.
Major risks for the insurance industry in Thailand include the following:
- natural disasters and financial and economic problems;
- Foreign exchange fluctuations and fluctuations of the real estate sector;
- Increased risk of smoking and drinking;
- Rising medical expenses;
- Increased pension premiums;
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