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Thailand Insurance Report Q1 2011
Business Monitor International, Dec 2010, Pages: 85
The Thailand Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Thailand's insurance industry.
Writing in December 2010, we have been able to include final data for 2009 and to amend projections for 2010 in order to take into account the statistics for the first eight months of the year that have been released by Thailand’s insurance regulator. We estimate total premiums of THB399,102mn. This includes non-life premiums of THB122,146mn and life premiums of THB276,955mn. In 2015, the corresponding figures are forecast to be THB490,382mn, THB173,183mn and THB317,199mn. In terms of the key drivers that underpin our forecasts, we predict non-life penetration to rise from 1.22% in 2010 to 1.25% in 2015, and for life density to increase from US$133 per capita to a still modest US$165 over the same period. BMI’s proprietary Insurance Business Environment Rating for Thailand is 59.3. The figures that have been published by the regulator indicate that despite Thailand’s political problems and a mixed economic outlook, there was major improvement in the fortunes of the insurance sector in 2010. If our estimates are correct, 2010 will be the first year of double-digit growth in the fragmented non-life segment since 2006. The 24% increase in life premiums that we are estimate for 2010 represents the (likely) fastest expansion during 2005-2015.
The competitive landscape in Thailand has remained broadly unchanged over the last few years, and is arguably more similar to that of the Philippines than any other country in the Asia Pacific region. As is the case in the Philippines, the local subsidiary of AIA is the dominant player, with a market share of around 30%. Although local institutions are significant – given that Thai Life, Muang Thai Life and Bangkok Life are the second, third and fifth largest players – it is the subsidiaries or associates of multinational giants that predominate. AXA, Allianz, Manulife, Prudential plc and ING – all of which have substantial businesses across the Asia-Pacific region – are represented. Interestingly, there are also associates of New York Life, ACE Life, Cardif and Generali, even though Thailand is emphatically not the most prospective national market in the region.
As is the case in the Philippines and Indonesia, the Thai non-life segment is extremely fragmented, in that none of the insurers are large in anything other than a local context. Given that auto insurance accounts for around 60% of all premiums in the segment, the leading auto insurance companies are also the top non-life companies overall. Local group Viriyah, with about a quarter of the market for autos insurance, and 16% of the non-life business, is the largest player in the segment. Bangkok Insurance, Dhipaya Insurance and Synmungkong Insurance, which account for 5-7% of non-life premiums each, are the next largest players. The foreign insurance companies, which are numerous, tend to feature prominently in marine and transportation and commercial lines.'
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