Thailand's life insurance industry is set to grow at a compound annual growth rate (CAGR) of 4.4% from THB660.4bn ($19.2bn) in 2024 to THB781.7bn in 2028, in terms of gross written premiums (GWP), forecasts and analytics company, GlobalData.
According to GlobalData’s Insurance database, Thailand’s life insurance industry is expected to grow by 3.7% in 2024, supported by growing health awareness and changing demographics. The latter emphasises the need for financial planning for the aging population.
GlobalData insurance analyst Aarti Sharma said, “The life insurance industry in Thailand grew by 3.7% in 2023, bolstered by a demographic shift toward an aging society, a growing expatriate population and rising health awareness. The trend is expected to continue in 2024 and 2025.”
Whole life insurance is the leading line of business within the life insurance industry in Thailand, with an expected share of 60.3% of the GWP in 2024. The growth of whole life insurance is attributed to an increase in average life expectancy in Thailand, which stood at 77.9 years in 2023 and is expected to rise to 79.6 years by 2030.
Whole life insurance offers permanent coverage until death or up to an advanced age, which makes it a popular choice among Thailand’s aging population. Whole life insurance is expected to grow at a CAGR of 3.7% over 2024–28.
Supplementary or rider insurance is the second leading line of business, which is expected to account for a 22.3% share of total life insurance GWP in 2024. With demographic changes and a growing expatriate population, health riders that offer flexible and customisable coverage based on medical history and changing needs are gaining popularity in Thailand. For Thai employees, popular supplemental coverage options encompass dental, vision and premium health insurance plans. Supplementary or rider insurance is expected to record a CAGR of 5.4% over 2024–2028.
Endowment insurance is the third-largest line of business and is expected to account for a 5.2% share in total life insurance GWP in 2024. In 2023, non-linked insurance products saw a 4.3% increase in GWP, while linked insurance premiums declined by 7.6%, due to adverse developments in the financial markets that prompted a shift in consumer demand towards products with more guaranteed returns. Endowment insurance is expected to grow at a CAGR of 5.2% over 2024-2028.
Pension, universal life, personal accident and health (PA&H) and other life insurance lines are expected to account for a combined 12.2% share of GWP in 2024.