Although Thailand’s general insurance forecast slowed in the aftermath of the Covid-19 crisis to 3.3 per cent in 2020 compared to 4.6 per cent growth n 2019, it looks set to bounce back in 2022, according to UK-based data analysts GlobalData.
“The Thailand economy continues to suffer from the repercussions of the Covid-19 pandemic, which delayed the recovery of the tourism sector.” Pratyusha Mekala, Insurance Analyst at GlobalData, said. “In addition, weak domestic activity is expected to impact the general insurance premiums in 2021.”
Health insurance grows faster than any other insurance sectors
Although there has been an overall decline in the general insurance market, personal accident and health insurance was the fastest growing segment in 2020, which experts put down to an ageing population and the rising demand for Covid-19 health insurance policies. Health insurance, with 6.6 per cent share in premiums, was the fastest growing segment registering 37.1 per cent growth in 2020.
“The general insurance industry in the country is expected to face challenges in the short term due to the resurgence of the COVID-19 pandemic,” Mekala added. “The Government’s stimulus packages and momentum in vaccine rollout will support the recovery of the general insurance industry.”
Meanwhile, Phuket is on track to open to fully vaccinated tourists by 1 July and the government plans to then reopen other key tourist hotspots such as Koh Samui. This aims to restart the tourism industry, which contributed to one-fifth of the economy before the pandemic. Phuket will reopen three months earlier than the rest of the country, which is expected to welcome vaccinated visitors in October.