Life coverage posts 4.5% first-half rise

Life insurance businesses posted growth of 4.5% in the first half, with bancassurance continuing to be the main driver, says the Office of the Insurance Commission (OIC).

Direct premiums were valued at 312 billion baht in the first six months this year, up 4.5% year-on-year.

Bancassurance contributed 47.7% of total direct premiums or 148.8 billion baht, up 7.2% year-on-year, followed by the agent channel (45.2%) and telesales (7.93%).

For non-life insurance businesses, total premiums in the first half were valued at 114 billion baht, up 5.2% year-on-year.

Brokers still remained the largest contributor of growth at 58.2%, valued at 66.6 billion baht, with a 6.1% year-on-year expansion, followed by bank branches (13.8%) and agents (6.87%).

OIC secretary-general Suthiphon Thaveechaiyagarn said the commission will continue its plan to increase regulation of insurance intermediaries, revising and improving rules for selling insurance products as well as monitoring the business conduct of insurance intermediaries.

"This will help prevent and reduce risks of fraud from insurance intermediaries and build confidence among people purchasing insurance products," Mr Suthiphon said.

The regulator will also conduct an annual examination of all insurance distribution channels including bancassurance and advertisement media, he said.

Mr Suthiphon said the OIC plans to develop a free mobile application that allows insurance buyers to check whether brokers or agents offering insurance products have received an operating licence from the regulator.

Total life insurance premiums at the end of July were valued at 359 billion baht, up 4.7% year-on-year, reported the Thai Life Assurance Association (TLAA). These include first-year premiums of 52.8 billion baht, single premiums of 50.1 billion and renewal premiums worth 256 billion.

TLAA executive director Picha Siriyodhin said renewal premiums had a retention rate of 84%, reflecting how life insurance policyholders cared about the importance of life insurance and continuous product development.