Life insurers aiming for 40% penetration rate
Thai Life Assurance Association (TLAA)'s new board of directors has vowed to help increase life insurance penetration to 40 per cent of total population by 2015.
Sara Lamsam, new president of the association, said the board has changed the assurance policies of the former board to achieve industry growth of at least 15 per cent and gross premiums of Bt377 billion or more. In the short term, life insurance penetration will be no less than 32 per cent of total Thai population.
The life insurance industry grew by 17 per cent with a total premium of Bt146 billion in the first five months, while the insurance penetration is now 30 per cent. The growth of premiums comes from all sources.
Sara said that the association’s plans to increase penetration to 40 per cent from 32 per cent still acknowledges how global economic troubles, natural disasters and the establishment of the Asean Economic Community (AEC) will influence the industry. Therefore, the association must increase competitiveness in all distribution channels.
He said the association would work closely with the Office Insurance Commission (OIC) on co-amending some regulations that might be a barrier to the industry and jointly educate people on life insurance in order to achieve its targets.
The OIC secretary-general Pravej Ongartsittigul said the office plans to lead Thai insurance companies in discussions with regulators in Myanmar to increase investment opportunities over there. The OIC is considering the opportunities in other countries in Asean too, he added.
For life insurance to reach 100-per-cent penetration in the long term, the PIC must encourage provincial markets because it remains mostly in Bangkok.
