Thailand’s non-life insurance coverage market is anticipated to contract by 5.6% in 2020 because the pandemic takes a extreme toll on the nation’s economic system, revealed knowledge and analytics agency GlobalData.
A serious motive behind this contraction is that the biggest enterprise line, motor insurance coverage which accounts for 70% share of the non-life insurance coverage market in Thailand, is projected to shrink by 6% in 2020.
In line with GlobalData Insurance coverage Analyst Madhuri Pingali, this lower is attributed to growing family debt, prevalent strain on auto financing and up to date lockdown restrictions attributable to COVID-19 and its financial influence which is anticipated to influence vehicle gross sales and in-turn influence the enterprise of motor insurers.
On the similar time, the property insurance coverage section – which is the second-largest enterprise line with 18% market share – can be projected to say no by 4.1%.
This enterprise line is anticipated to profit with elevated infrastructure investments as the federal government has allotted greater than THB300bn ($9.52bn) in direction of transport and public utility growth tasks.
Nevertheless, industrial and retail development actions are anticipated to say no owing to the lockdown restrictions and ensuing financial slowdown.
“Although, Thailand was successful in containing the spread of virus, the economic contagion has affected numerous industries leading to contraction in Thailand’s non-life insurance market. The fiscal policies adopted by the government to revitalise domestic demand will be key to revival of non-life insurance market in Thailand,” mentioned Ms Pingali.
Following its newest revision of insurance coverage development within the nation, GlobalData now expects Thailand’s insurance coverage sector to develop at a compound annual development fee of 4.1% from 2020-2024.