Thailand Insurance Market and Technology Overview

by Wenli Yuan, February 17, 2015
Industry Trends
Asia-Pacific

Abstract

Thailand’s insurance market has been growing swiftly for the past 10 years. Growth is expected to continue, driven by internal demand as well as opportunities offered by the ASEAN Economic Community.

In the report Thailand Insurance Market and Technology Overview, Celent looks at drivers for insurance growth and insurance business trends, and estimates spending on IT systems.

Drivers for a continuing growth scenario include:

  • A rapidly growing middle class and a customer base preparing for retirement.
  • Increased knowledge of the benefits of insurance following natural disasters and the introduction of the “Catastrophe Insurance Policy.”
  • Expanded demand for health insurance and regulatory support for microinsurance.
  • The rise of bancassurance and innovative distribution channels.
  • The upcoming launch of the ASEAN Economic Community in Southeast Asia.

Celent estimates that on the back of such factors IT spending in the Thailand insurance market will reach US$370 million in 2015, representing a CAGR of 17.2% from 2010 to 2015.

“The upcoming launch of the ASEAN Economic Community in Southeast Asia opens up significant opportunities for the Thai insurance industry. At the same time, the potential competition is rising,” says Wenli Yuan, a senior analyst with Celent’s Asian Financial Services group and author of the report. “Celent suggests insurers in Thailand create new business models and technology strategies to extract the opportunities offered by regional integration.”

This report concludes with recommendations for financial institutions and vendors that are considering business in the Thailand insurance market.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Background

2

Insurance Market Overview

4

 

Market Growth

4

 

Drivers of Growth

5

Life Insurance Business

8

 

Market Size

8

 

Market Concentration

8

 

Lines of Business

10

 

Distribution Channels

11

P&C Insurance Business

15

 

Market Size

15

 

Market Concentration

15

 

Lines of Business

17

 

Distribution Channels

18

IT Trends

19

 

Life Insurer Spending

19

 

General Insurer Spending

21

 

Government Projects

23

 

Vendors

24

Conclusion

25

 

For Insurers

25

 

For Vendors

25

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

27

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