FITCH: THAI LIFE MARKET STABLE
Source: insurancenews.com.au, 28 November 2012
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