SINGAPORE, Feb 4 (Bernama-BUSINESS WIRE) — AM Best expects motor, health and personal accident (PA), as well as property lines businesses to remain growth drivers for Thailand’s non-life market, although profitability may face rising pressure given the fierce market competition and the need for insurers to improve pricing and operational sophistication.
A new Best’s Market Segment Report, titled, “Thailand Non-Life Insurance Segment Remains Robust Despite Narrowing Profit Margins,” states that in 2018, the Thailand non-life insurance segment posted THB 232 billion (USD 7.5 billion) in direct premium written (DPW), making it the second-largest non-life insurance market in Southeast Asia. AM Best considers the market’s earnings to be adequate; however, various segments of the market are facing difficulties in maintaining underwriting margins. Between 2015 and 2018, the market’s combined ratio rose moderately, to 97% from 92%, while its return on equity weakened to 5% from 11%.