Page 29 - WTW Asia Insurance Market Report
P. 29

Thailand 	                                                    Vietnam 	

WTW is supported by Multi Risk Consultants (MRC) in Thailand    The first six months of 2016 showed a 24% increase in
                                                                premiums written as compared to 2015, the total gross
   The insurance market in Thailand continued to be             written premium amounting to USD 1.75 billion. Non-life
   soft, with a significant amount of capacity entering         insurance premiums reached USD 792 million, a growth of
   the market due to which pricing across all lines             15% in comparison with the same period of last year.
   of business dropped sharply. Insurers with broad
   appetites encouraged underwriters to write new                          Health and Benefits (H&B)
   business in a competitive manner. Marine Cargo
   witnessed an especially sharp drop in rates due to stiff   Health insurance reached a premium income of USD
   competition, higher capacity and small market premiums.    190 million, constituting 24% of total non-life insurance
                                                              market. Insurers increased net premiums by cutting group
   In 2016, Thailand’s insurance regulator, the Office        discounts in order to compensate for high loss ratios and
   of Insurance Commission, increased death benefits          medical inflation of 30% at public hospitals. Clients in the
   attached to compulsory insurance for motor vehicles        Health and Benefits sector showed interest in controlling
   from 200,000 Baht to 300,000 Baht. Favourable loss         their loss ratio, thus signalling the potential for growth in
   ratios for motor insurance seem to have driven this        Global Wellness and Benefits Advisory services.
   change. The impact on insurers is not expected to be
   large. This is because approximately 5000 new motor        Growth of Chinese-Supported Programmes
   vehicles are registered in Thailand every day, so the
   increase in premium volume more than offsets the           The Vietnamese government is encouraging selective
   higher payouts.                                            new investment in manufacturing industries due to
                                                              growing concerns of environmental pollution. Most large
   Sixty percent of premiums in the market are controlled     investments in textiles, paper, steel, electronics and
   by the top 10 insurers, which has sparked a trend of       infrastructure are awarded to Chinese contractors or
   consolidations and acquisitions in order to gain market    Chinese bank sponsors. As a result, insurance programs
   share and strengthen market position. This trend is        are supported by the Chinese market and are placed with
   expected to pick up pace in the next 3 to 5 years.         local fronting insurers at competitive rates.

   2017 is expected to be a continuation of 2016, with
   rates continuing their downward trend. Elections are
   due to take place late 2017. Companies with business
   interests in Thailand are likely to pay closer attention
   to developments in the political arena and monitor
   ensuing risks accordingly.

“In 40 years of broking, premiums have
never been this low across all lines of
business as in 2016”

                                                                         29Asia Insurance Market Report 2016
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