Trade affiliation says general outlook good regardless of financial challenges
Whole insurance coverage claims from the highly effective earthquake that struck Myanmar and Thailand in March might surge to 50 billion baht, up from the 30 billion already filed throughout 150,000 claims, in response to the Thai Normal Insurance coverage Affiliation (TGIA).
The claims course of is predicted to proceed by way of September.
Somporn Suebthawilkul, the TGIA president, stated the quake had a deep impression on each the general public and the insurance coverage enterprise, elevating consciousness of the dangers posed by pure disasters.
Because of this, he stated demand for earthquake-inclusive protection and private property insurance coverage is predicted to spike.
Mr Somporn stated the elevated threat might result in greater premiums for catastrophe-related insurance policies later this yr.
Protection gaps
In response to the TGIA, among the many most critical losses from the quake was the collapse of the 30-storey State Audit Workplace constructing that was beneath building in Chatuchak district of Bangkok.
The claims course of remains to be beneath evaluate, with forensic engineers assessing whether or not the collapse resulted from design flaws or substandard building.
If these views are confirmed, the insurer might deny the declare, until it may be confirmed the constructing met all requirements and the collapse was precipitated solely by the earthquake.
The quake additionally revealed gaps in employee safety. Many building employees who died or have been injured within the quake lacked accident insurance coverage protection, as their employers had not bought voluntary insurance policies. These employees’ households should search compensation immediately from their employers.
Expanded well being choices
The TGIA can be working to broaden medical health insurance choices by enabling policyholders to decide on between private and non-private hospitals for his or her therapy.
The brand new coverage construction is designed to offer protection at each kinds of amenities, primarily based on the policyholder’s desire.
The versatile medical health insurance plan is predicted to launch within the third quarter of 2025.
Nonetheless, Mr Somporn stated therapy at personal hospitals prices 6.1 occasions extra on common than at public amenities, which will probably be mirrored in greater premiums for personal hospital protection.
“The aim is to not alter the present co-payment construction, however to present customers extra selection, enabling them to handle their healthcare bills extra successfully,” he stated.
Motor compensation cap
Following the October 2024 college bus fireplace that uncovered the restrictions in present motor insurance coverage protection, the TGIA plans to boost the compensation restrict for highway accident victims from 10 million baht to twenty million beneath each obligatory and voluntary motor insurance coverage.
Mr Somporn stated the present compensation cap is insufficient to totally assist victims and confirmed that brokers is not going to be permitted to cancel current insurance policies on account of the upcoming modifications.
Regardless of the upper protection restrict, policyholders is not going to see a rise in premiums, he stated, as insurers are anticipated to soak up the extra threat by way of reinsurance preparations.
The brand new compensation cap is anticipated to take impact quickly, pending approval from the Workplace of the Insurance coverage Fee.
Trade outlook
The TGIA forecasts Thailand’s normal insurance coverage business will develop by between 1.5% and a pair of.5% this yr, according to GDP.
New premiums are anticipated to succeed in 270 billion baht, pushed by rising demand for catastrophe insurance coverage and continued development in motor insurance coverage.
Within the first quarter of 2025, the sector expanded by 3.8% year-on-year, reaching 75.3 billion baht, although development is predicted to reasonable amid financial uncertainty.
In response to Mr Somporn, insurers are anticipated to undertake synthetic intelligence (AI) applied sciences to enhance threat evaluation and supply extra personalised insurance coverage options.
He stated smaller, low-premium insurance policies are sometimes uncared for by conventional brokers, and AI will help enhance entry to insurance coverage by enabling the event of cost-effective, personalised protection delivered by way of digital platforms.
