Bangkok, July 31 – President of the Thai Life Assurance Association Revealing the figures for the first half of 2023, total written premiums grew by 3.78 percent, or total written premiums were 300,005 million baht. 612,500-623,500 million baht, growing in the range of 0-2 percent with a policy persistence rate of approximately 81-82 percent.
Sara Lamsam, President of the Thai Life Assurance Association Revealing the overview of the life insurance business in the first half of 2023, between January and June, there were total written premiums of 300,005 million baht, an increase of 3.78 percent compared to the same period in 2022, classified as new insurance premiums of 86,802 million baht, the rate an increase of 8.93% and the next year’s premium is 213,203 million baht, a growth rate of 1.82%, with a policy persistence rate of 82% for new insurance premiums, consisting of 1.) First year premium 56,456
million
baht an increase of 14.44 percent
2.) One-time premium payment of 30,346 million baht, a decrease of 0.03 percent.
And if classifying total written premiums separately by distribution channels, it will appear as follows
Sales through life insurance agents (agency) had a total insurance premium of 152,506 million baht, a growth rate of 3.23 percent, representing a proportion of 50.83 percent.
Selling through banking channels (Bancassurance) with a total written premium of 117,482 million baht, a growth rate of 2.43 percent, representing 39.16 percent.
Sales through life insurance brokers (Brokers) had a total insurance premium of 16,642 million baht, a growth rate of 20.17 percent, equivalent to 5.55 percent.
Sales through direct marketing channels had a total written premium of 6,859 million baht, a growth rate decreased by 2.02 percent, representing 2.29 percent.
Selling through digital channels (Digital) has a total insurance premium of 482 million baht, the growth rate increased by 25.64 percent, representing 0.16 percent.
Sales through other channels (Others), such as sales at Worksite, sales through booths, sales through convenience stores, etc., had a total insurance premium of 6,035 million baht, an increase of 11.23 percent, representing a 2.01 percent ratio.
However, life insurance products that are popular in the first half of 2023 and have a higher growth rate include health insurance supplementary contracts and critical illness protection. The growth increased by 6.34 percent, accounting for 18.01 percent, mainly from the fact that people began to pay more attention to health care. due to the cost of medical treatment that tends to increase every year As a result, the supplementary contract for health insurance and critical illness protection is a product that people are interested in. Including pension insurance The growth increased by 12.84 percent, representing 1 percent. 71 which partly comes from the aged society and comes from the value of late marriage, having fewer children, causing people to become more aware of saving money for taking care of themselves after retirement. For this reason, it is an important accelerating factor that makes the business sector including each life insurance company Such products must be developed to suit the current situation. and able to meet the needs and lifestyles of each individual even more
while investment-linked life insurance products (Unit-Linked+Universal Life) grew 13.24% less than the same period last year. The total written premium was 17,201 million baht and the proportion compared to the total written premium was 5.73 percent, which came from the uncertainty of global and domestic economic directions. including fluctuations in yields and inflation. As a result, most people are unable to receive volatility from investment. As a result, the decision to buy life insurance products with investments is postponed.
In addition, the overall direction of the life insurance business in the second half of 2023 has supporting factors that cause the life insurance sector to grow as expected at the beginning of the year. by predicting that The overview of the life insurance business in 2023 will have a total written premium of approximately 612,500-623, 500 million baht, growing in the range between 0% to 2% with a policy persistence rate of approximately 81% to 82%. There are positive factors that will support business growth, namely, people are beginning to realize the importance of life insurance and supplementary contracts. More serious health or disease insurance which, in addition to the tendency of rising medical expenses It also comes from the uncertainty of the spread of new emerging diseases such as Covid-19 and from the business sector that has issued policies and enforced a new standard of health insurance supplementary contracts (New Health Standard) with an important objective to Allowing people to compare products and choose the coverage they need more conveniently and quickly meanwhile People are becoming more aware of pension insurance as Thailand has entered an aging society.
Including the government’s support of tax deduction measures for life insurance, health insurance and pension insurance. and measures to relax the supervision more Principle-Based, whereby the practice framework can be adjusted according to the current market conditions. so that the overall picture of the life insurance business can still grow Even in times of crisis, the business sector has encouraged life insurance companies to apply technology and innovation. to increase operational efficiency and competitiveness.
However, the life insurance business still needs to closely monitor various challenging factors, such as uncertainties from the domestic and global economy. This affects the interest rate level (Yield Curve), although in the past there has been a direction of rising. But still need to be careful when choosing to invest in each type of asset. Trade wars and international conflicts that affect inflation or people’s purchasing power. Uncertainty of domestic and international political situations affecting consumer and investor confidence. Cyber threats that can affect and affect the stability of the life insurance system and consumer confidence. It also includes the introduction of new international regulations and standards such as Financial Reporting Standards 17 (TFRS 17), United States Anti-Tax Evasion Compliance (FATCA), Financial Accounting Information Automated Exchange Standards. (CRS) and compliance with the Personal Data Protection Act (PDPA), which will result in each life insurer having to align their operations with the new principles. which requires both budget, time and personnel with knowledge and understanding
Therefore, the Thai Life Assurance Association has plans to prepare for all-round challenges. By incorporating the concept of sustainable corporate development (ESG) into consideration for investment and operation. Which gives importance to doing business that takes into account the 3 aspects of responsibility, namely the environment (Environment), society (Social) and governance (Governance), applied to make the Thai life insurance business sustainable. Promoting the development of new life insurance products Including support for the use of technology and innovation to develop various processes. especially the sales presentation process To increase operational efficiency and raise the level of satisfaction and confidence of the insured. Creating a body of knowledge on prevention and technology literacy for the people Including proactive operations in requesting for improvements in various regulations keep current Pushing for a knowledge testing system Electronic licensing system and facilities Including aggressive public relations for member companies and individuals to fully utilize Along with promoting and supporting the business to grow sustainably. free competition under good governance and supervision of regulatory bodies
In addition, the Thai Life Assurance Association There is a policy that requires each life insurance company to conduct business with all-round risk management. both before and after underwriting and have a financial position with a risk-based capital adequacy ratio (CAR Ratio) higher than the regulatory capital requirement (Supervisory CAR), sufficient to meet the obligations of all insurance policies issued to the insured and ready to provide protection to the insured until the expiration of the contract As can be seen in the first quarter of 2023 from information on the OIC website. The life insurance sector has a risk-based capital adequacy ratio. is at 385 percent, which is higher than the capital adequacy ratio used in supervision (Supervisory CAR). The life insurance business is stable, strong and adheres to the promises according to the obligations in every life insurance policy issued to the insured. – Thai News Agency
Source: Thai News Agency