Thailand's insurance industry is expected to maintain growth broadly in line with the country's GDP this year, despite mounting economic uncertainty and rising living costs that are beginning to influence consumer purchasing behaviour, the sector's regulator and senior executives say.
Chuchatr Pramoolpol, secretary-general of the Office of Insurance Commission, said the overall insurance industry is still projected to expand at around the same pace as Thailand's economic growth, with the regulator maintaining the growth target at 3.5% this year.
Geopolitical tensions and ongoing global conflicts have not yet caused severe disruptions to the sector's outlook. Historically, Thailand's insurance industry has tended to grow at roughly the same rate as national GDP.
However, higher operating costs, including rising oil prices, medical expenses, labour, and spare parts costs, are increasing pressure on insurers' profitability. Elevated living expenses are also reshaping insurance purchasing patterns among consumers, Mr Chuchatr said.
"Instead of expanding coverage, many policyholders are choosing to maintain existing protection levels and prioritise essential insurance products, particularly health insurance renewals," Mr Chuchatr told the 2nd Asean Insurance Literacy Programme.
For example, consumers who previously spent 30,000-40,000 baht annually on premiums are generally keeping spending at similar levels rather than increasing coverage amid economic uncertainty.
The regulator emphasised that maintaining continuous health insurance coverage remains critical, especially as healthcare costs continue to rise and economic conditions remain fragile.
FINANCIAL STRENGTH
Despite weaker consumer purchasing power, Thailand's insurance sector, particularly life insurers, has continued to post strong earnings growth, supported by improved investment returns and accounting changes under IFRS 17.
According to Mr Chuchatr, the life insurance industry generated net profits of more than 70 billion baht last year, driven partly by stronger return on investment and the transition to the IFRS 17 accounting standard.
Although IFRS 17 may create short-term volatility in financial reporting, the regulator believes the industry's long-term fundamentals remain solid.
"Thailand's insurance sector remains financially stable despite previous cases of insurer closures in past years," he said, adding that consumers' confidence in the industry remains intact.
Sutee Mokkhavesa, president of Muang Thai Life Assurance (MTL), said the insurer remains financially strong amid industry transformation.
MTL recorded 74 billion baht in premium income last year and manages assets worth around 690 billion baht. Its capital adequacy ratio stands at 250%, while Fitch Ratings has assigned the company a domestic rating of AAA (tha) and an international rating of BBB+.
INDUSTRY TRANSFORMATION
In Mr Sutee's view, IFRS 17 is reshaping the global insurance industry by forcing insurers to focus more on long-term risk responsibility rather than short-term profitability.
The future of the industry will also increasingly revolve around "future wellness" by integrating financial security, healthcare, technology and risk management into a broader insurance ecosystem designed to improve long-term quality of life for ageing populations, he noted.
Mr Chuchatr shared a similar view, noting that demographic changes are reshaping the future of Thailand's insurance market.
Advances in risk management and insurance innovation have enabled insurers to extend underwriting age limits from the traditional 70-75 years range to as high as 90 years, reflecting improving health conditions among senior citizens.
Savings insurance and annuity products are increasingly positioned as essential retirement planning tools that can help consumers build long-term financial security as life expectancy rises.
"Living longer requires both financial and health stability, while insurance products can help consumers manage long-term risks more effectively," Mr Chuchatr said.
Meanwhile, Thai insurance technology has drawn increasing attention from neighbouring countries, particularly innovations that improve accessibility, accelerate policy approvals and enable real-time claims tracking, he noted.
