Fitch Ratings-Bangkok/Singapore -22 May 2017: Fitch Ratings says in a new report it expects the growth of Thailand's life insurance industry to be supported by protection and investment-linked products even as the growth of the overall market slows due to economic factors such as high household debt and slower GDP expansion.
Thailand's life insurance industry remains well capitalised given its moderate profitability and prudent investment allocations. This supports the insurers' ability to weather any business volatility and more stringent regulations. Fitch sees Thai insurers continuing to manage their investments judiciously amid a persistent low-yield environment.
Thailand's regulatory landscape is developing with new rules on online insurance sales and the foreign shareholding limit in local insurers. Fitch expects the recent regulations governing the online channel to provide a clear regulatory framework and support future business growth. The relaxation of foreign ownership may drive new cross-border partnerships or consolidations.
The second phase of Thailand's Risk-Based Capital Framework is currently in the pipeline. Fitch believes stiffer regulations will help to stabilise Thailand's life insurance sector and offer higher protection to policyholders.
The full report "Thailand Life Insurance Market Dashboard 2017" is available at www.fitchratings.com or by clicking the link in this media release.