The variety of non-life insurance coverage corporations in Thailand is projected to be decreased to about 25-30 from the present variety of about 50, in accordance with Bangkok Insurance coverage chairman Chai Sophonpanich. Bangkok Insurance coverage is the third largest normal insurer within the nation.
In an interview with Line Right now, Mr Chai outlined the developments in the overall insurance coverage market in Thailand within the subsequent few years.
He stated that with varied new rules sooner or later, it would turn into tougher for non-life insurance coverage corporations to develop organically and to put money into folks and expertise techniques. Subsequently, it’s believed that there will probably be extra mergers and acquisitions any more.
“Small and medium-sized corporations may have problem growing techniques and hiring folks as a result of these components contain excessive prices, for instance, hiring actuaries,” Mr Chai stated, including that enormous insurers have a bonus due to better capability.
Overseas traders
Mr Chai stated that there was a excessive variety of overseas traders involved in investing within the normal insurance coverage enterprise in Thailand. “They’re eyeing the highest 5 non-life insurance coverage corporations within the trade as a result of they suppose that if an insurer shouldn’t be large enough, it isn’t value investing in.”
At the moment, there are at the least a dozen overseas insurance coverage corporations in Thailand.
Mr Chai stated that forecasts are that in 2024-2025, the Thai financial system will nonetheless be sluggish. He stated, “This makes selecting an funding tough as a result of we’re nonetheless unsure what the financial system will probably be like. Most analysts count on that this yr GDP will develop by 2.7-2.8%, which is low in comparison with the previous. It isn’t clear which sort of enterprise will develop prominently. Subsequently, at the moment, traders are delaying motion and taking a wait-and-see stance as they monitor the event of the financial system.”