FITCH: THAI LIFE MAR­KET STA­BLE

Source: in­sur­ance­news.com.au, 28 Novem­ber 2012

Insurance - - INDUSTRY UPDATES -

Fitch Rat­ings is pre­dict­ing a steady pre­mium growth, good cap­i­tal­i­sa­tion and zero lever­age for the Thai life in­surance mar­ket. It re­ports that to­tal life in­surance pre­mi­ums for the first seven months of this year were THB212.4 bil­lion (RM21.21 bil­lion), up 17.52% on the pre­vi­ous cor­re­spond­ing pe­riod. It notes the grow­ing aware­ness of risk and pro­tec­tion in­surance is driv­ing the mar­ket.

They say that the multi-distri­bu­tion chan­nels are ex­pected to un­der­pin a sus­tain­able source of pre­mium in­come, with agency and ban­cas­sur­ance still ac­count­ing for most of the pre­mi­ums. The mar­ket was pro­tected from the Thai floods by the low level of prod­uct pen­e­tra­tion, with just 900 life in­surance claims from the coun­try’s pop­u­la­tion of 69 mil­lion.

Fitch Rat­ings pre­dicts catas­tro­phe aware­ness and life pro­tec­tion de­mand will drive pre­mium growth. Ac­cord­ing to the agency, the pos­i­tive out­look may change if there is a se­vere eco­nomic down­turn. It be­lieves that de­mand for life and health in­surance will grow as the pop­u­la­tion’s dis­pos­able in­come ex­pands.

THB100 = RM9.99

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