Thailand’s insurance sector is experiencing stable growth, with significant expansion in life insurance and continued development in property insurance.

The market is expected to reach $32.58 billion in gross written premiums by 2025, with life insurance accounting for the largest share.

The Thai general insurance market is expected to continue growing at around 4% p.a. between now and 2028.

Life insurance growth

The Thai Life Insurance Association (TLAA) forecasts growth of 2-3% in 2025, reaching $21 billion. Life insurance remains a mainstay of the sector, accounting for a significant share of written premiums and offering savings and financial protection solutions.

Development of property insurance

The property insurance sector is evolving, with digitization and regulatory reforms playing a key role in its evolution.

Growth in the Thai insurance market is driven by the property ($10 billion), motor and personal accident and health insurance sectors, which are expected to account for almost 90% of total general insurance premiums.

– Motor insurance: 55%

o However, its growth rate is expected to slow due to a decline in domestic car sales amid slowing economic growth. Despite this, growth in motor insurance is supported by an increase in sales of electric vehicles (EVs).

o The increase in road accidents should prompt insurers to reassess risk exposure and raise premium rates, thereby supporting growth in motor insurance.

– Property insurance: 19%

o Property insurance, the second largest segment, is expected to grow thanks to government projects in the fields of tourism infrastructure, energy and housing. However, geopolitical tensions and the high cost of materials and energy pose risks for property insurance claims. Its growth will be underpinned by an improvement in residential demand, highlighted by the increase in the value of outstanding mortgages and the number of residential land development licenses issued, which will support growth in property insurance. However, in the short term, geopolitical tensions and high material and energy costs could pose a downside risk.

– Personal accident and health insurance: 18%

o This segment should continue to grow, driven by increased health awareness and rising medical costs.

– Third-party liability, financial lines, miscellaneous insurance and marine, aviation and transit insurance: 10%

Favorable government initiatives and regulatory reforms will help to increase the penetration rate of general insurance in Thailand, which remains below that of other regional markets such as Australia, New Zealand, Japan and Hong Kong.

Thailand’s total insurance market is expected to reach $32.58 billion by 2025, with an average per capita expenditure of $452.86.

Several factors are exerting a structural influence on the growth of the insurance market: demographics, increased risk awareness and improved basic infrastructure. Looking ahead, Thai society remains vigilant in a complex risk environment, which includes domestic economic pressure due to high household debt and an uneven recovery, global geopolitical tensions affecting investment sentiment, increasing natural catastrophe risks and rising compliance costs linked to regulatory changes and digital transformation.

Thailand faces a number of challenges, such as competition, changing regulations and economic risks linked to the country’s macroeconomic situation.

Despite this, the outlook is encouraging, with Thailand’s insurance sector considered to have significant growth potential, with opportunities in property, health and personal insurance. All in all, Thailand’s insurance sector is a dynamic, constantly evolving market, with opportunities for insurers to develop their activities in various segments.

Finally, it should be noted that Thai insurers are likely to face an increase in claims following the 7.7 magnitude earthquake that struck Myanmar earlier this year. However, global and regional reinsurers are expected to absorb the majority of insured losses.

The Thai insurance industry has taken steps to strengthen its resilience to natural catastrophes since the severe floods of 2011. Many companies have increased their reinsurance coverage, particularly for catastrophic events.

Thailand’s insurance penetration rate remains relatively low (around 1.6%), and earthquake-specific coverage is little used. Earthquake risks are generally bundled into broader natural catastrophe policies, reflecting the perceived low threat of such events in the region.

Further adjustments to the insurance landscape are expected in the wake of the earthquake. Local insurers and reinsurers are likely to work together to extend and clarify coverage for seismic events. This could include more precise definition of policy terms and broader earthquake protection, in response to changing risk perceptions.

Ongoing developments are also planned in risk modeling. Improvements could focus on taking into account Bangkok’s loose soils and the interactions between low-frequency seismic waves and building characteristics.