The Middle East conflict has weakened the outlook for Thailand's insurance premium growth this year, driven by surging energy prices, higher reinsurance costs, and increased financial market volatility, according to the regulator.
Office of Insurance Commission (OIC) Secretary-General Chuchatr Pramoolpol said the conflict presents a major risk to the global economy through rising oil prices, disrupted supply chains, inflationary pressures, and heightened volatility in global financial and capital markets, reported The Bangkok Post.
He added that the effects could extend to Thailand’s insurance sector, potentially slowing premium growth, increasing claims costs, and raising reinsurance expenses as global reinsurers tighten underwriting standards.
The OIC expects insurance premium growth to miss earlier forecasts due to weaker economic activity, soft consumer spending and volatile financial markets.
Non-life insurers are expected to see higher claims costs due to rising energy prices, construction materials, labour, and transportation expenses. Health insurers may also come under pressure from medical inflation and increased pharmaceutical costs.
Sectors exposed to global trade and geopolitical risks—including marine, aviation, logistics, energy, property, and business interruption insurance—could face tighter underwriting standards and higher reinsurance costs.
Despite these headwinds, health insurance is projected to continue growing steadily, supported by rising consumer awareness of healthcare protection, said Mr Chuchatr, the news site reported.
OIC said it will continue to monitor developments in the Middle East and other global risks, particularly their impact on energy prices, inflation, capital markets and the reinsurance sector.