The Knowledge Centre - Thailand Insurance Sector

New Delhi, 30th May, 2008 - Thailand is the 2nd better abridgement in Southeast Asia, afterwards Indonesia. It ranks amid in the abundance advance in South East Asia and is the 4th richest nation per capita, afterwards Singapore, Brunei, and Malaysia. The Thai abridgement in 2008 is forecasted to abound at 5.6% (in the forecasted ambit of 5.0-6.0%). This amount is an advance on 4.8% advance in the antecedent year according to Fiscal Policy Office (FPO), Ministry of Finance. In 2008 accelerated accessible area spending led to accretion in calm appeal which is accepted to be far added counterbalanced bread-and-butter expansion. Government action would again be affected to activate the calm economy. This happens if alien appeal is acceptable to be ashen from accessible all-around bread-and-butter slowdown. External adherence in 2008 will abide able with accepted anniversary surplus estimated to be 0.5% of GDP (in the ambit of 0.3-0.8% of GDP). In contrast, centralized adherence in 2008 may accept some accident with accretion banderole aggrandizement at 4.5% (in a ambit of 4.3-4.8%). This is mainly due to ascent activity and aliment prices in the apple markets.

According to ‘The Economist’, absolute GDP advance will apathetic down by 1.15% p.a over the next 4 years (2008-12), as compared to 5.3% p.a in accomplished 3 years back 2007. This dawdling of GDP can be attributed to assorted abrogating factors, such as political uncertainty, alternation of adopted barter rates, and connected top petroleum prices in 2006.

The Thai allowance industry, alternating with the added Thai economy, has now about recovered from the base of the Asian banking crisis and is experiencing noteworthy growth. The trend is accepted to abide as accessible acquaintance of the charge for allowance increases.

Market Performance and Forecast

Within a amount of 7 years (2000 - 2007), Thai Insurance Sector has accomplished a advance of 191% currently valuated at $9,434.72 million. The Knowledge Centre predicts, the all-embracing bazaar admeasurement will access by 72.5% added and is accepted to blow the highs of $13,012.75 actor by 2011.

The activity allowance bazaar in Thailand amid 2000 and 2007 added at a CAGR of 16.57%. The Knowledge Centre envisages that this trend would abide and the bazaar will see CAGR of 5.75% in 5 years and ability $8,306.21 actor in 2011.

The non-life allowance bazaar in Thailand amid 2000 and 2007 added at a CAGR of 10.73%. The Knowledge Centre aswell forecasts that the advance will abide and the bazaar will see CAGR of 8.34% in the next 5 years with the premiums extensive $4,706 actor by 2011.

Competitive Landscape

Some of the top adopted allowance companies in Thailand are ACE, AIG, Allianz, AXA, Generali, ING, Millea Holdings, Manulife, New York Life and Prudential (UK). The bazaar is bedeviled by AIA, the bounded name of AIG that accounted for approx. 29% of all of gross premiums in 2007. Thai Life (TLI) is advised to be the additional better amateur all-embracing with a bazaar allotment of approx. 14%. The next better accumulation is advised to be a collective adventure amid non-life insurer Ayudhya, bounded amassed Charoen Pokphand and Allianz (AACP) with a bazaar allotment of approx. 14%. Other above players in this bazaar are Ocean Life, Finansa, bounded assembly of AXA (Krungthai) and ING.

Non-life allowance area in Thailand is added sub-categorized beneath Fire, Marine & Transportation, Hull, Cargo, Automobile, Compulsory, Voluntary, Miscellaneous, Industrial All Risks, Public Liability, Engineering Insurance, Aviation Insurance, Personal Accident, Health Insurance, Crop Insurance and Other Insurance. Some of the top companies in this area are Bangkok Insurance, Dhipaya Insurance, Phatra Insurance, New Hampshire Insurance, Ayudhya Insurance, Mitsui Sumitomo Insurance, MSIG Insurance, Sri Muang Insurance, Siam Commercial Samaggi, South East Insurance, Viriyah Insurance, Synmunkong Insurance, Krungthai Panich etc.

Driving factors
=> Balanced bread-and-butter amplification and acknowledging role of the government
=> Recent reforms and government’s authoritative initiatives
=> Re-defined banking practices and deepening of accumulated governance
=> Relaxation of restrictions on admiral and chief admiral of allowance companies
=> Amendment of clauses administering the appraisal of assets & debts of a activity allowance company
=> Merger or alliance of the ample amount of bounded insurers
=> Middle assets automated developing nation
=> Growing absorption in Bancassurance
=> Adoption of THBFix and Bibor
=> Establishment of Insurance Commission

Major trends, issues and opportunities
=> Mergers and acquisitions in Thailand's allowance industry are acceptable to bead off
=> Thailand's abridgement is slowing as the accoutrement of top oil prices, ascent absorption ante and long-running political ambiguity crop their toll.
=> Political ambiguity and alternation of adopted barter rates
=> Bullish trend in anchored bead ante
=> Government regulations laying a able foundation for approaching advance
=> Increase in adopted buying limits
=> Move appear a ability abridgement through abilities development
=> Issues in Health Insurance Systems

Topics covered in the report
=> Thai economy, its performance, approaching angle for 2008-09
=> Government’s bread-and-butter policies, macroeconomic factors, trends and analysis
=> Economic and Insurance ambiance in Thailand
=> Market achievement and anticipation for Thai Insurance Sector amid 2000, 2007 and 2011
=> Market achievement and anticipation for Thai Life Insurance Sector amid 2000, 2007 & 2011
=> Market achievement and anticipation for Thai Non-Life Insurance Sector amid 2000, 2007 & 2011
=> Recent about-face of banking institutions and ambience up of Insurance Commission
=> Corporate Finance Legislation and added above authoritative developments
=> Role of Bancassurance
=> Specific regulations and norms by the Thai Government for allowance sector.
=> Sub-categorization of activity and non-life allowance sector
=> Competitive mural & bazaar allotment of companies in activity and non-life allowance sector
=> Company profiles of top players in activity and non-life allowance sector

Table of Contents

1.THAILAND
1.1.THAI ECONOMY
1.2.GOVERNMENT POLICIES
2.THAI INSURANCE SECTOR
2.1.MARKET OVERVIEW
2.2.MARKET PERFORMANCE & FORECAST
2.2.1.Thailand Insurance Market
2.2.1.1.Thailand – Life Insurance Market
2.2.1.2.Thailand – Non-Life Market
2.3.DRIVING FACTORS
2.3.1.Recent Reforms
2.3.2.M&A or alteration of the business of an Insurance Company
2.3.3.Thai Corporate Finance Legislation
2.3.4.Role of Bancassurance
2.3.5.Recent Regulatory Developments
2.3.6.Insurance Commission replaced Department of Insurance
2.4.TRENDS, ISSUES AND OPPORTUNITIES – AN ANALYSIS
2.4.1.Insurance M&A acceptable to drop
2.4.2.Pending Legislations
2.4.3.Implications for Foreign Insurers
2.4.4.Skills development charcoal a key
2.4.5.Issues in Health Insurance Systems in Thailand
2.5.GOVERNMENT REGULATIONS
2.6.COMPETITIVE LANDSCAPE
2.6.1.Life Insurance
2.6.1.1.Life Insurance Renewal Market
2.6.1.2.Single Premium Market
2.6.2.Non-Life Insurance Market
2.6.2.1.Fire Insurance Market
2.6.2.2.Marine and Transportation Market
2.6.2.3.Cargo & Hull Market
2.6.2.4.Automobile Sector
2.6.2.5.Miscellaneous Insurance
2.6.2.6.Industrial All Risks Insurance
2.6.2.7.Public Liability Insurance
2.6.2.8.Engineering Insurance
2.6.2.9.Aviation Insurance
2.6.2.10.Health Insurance
2.6.2.11.Personal Accident Insurance
2.6.2.12.Other Insurance
2.6.3.Company Profiles
2.6.3.1.American International Assurance aggregation (AIA), Thailand
2.6.3.2.ACE INA Overseas Insurance Company Limited
2.6.3.3.Ayudhya Insurance Public Company Limited
2.6.3.4.Ayudhya Allianz C.P. Life Public Company Limited
2.6.3.5.Bangkok Insurance Public Company Limited
2.6.3.6.Bangkok Union Insurance
2.6.3.7.Charan Insurance
2.6.3.8.Deves Insurance
2.6.3.9.ING Life Limited
2.6.3.10.Indara Insurance
2.6.3.11.Manulife Insurance (Thailand) Public Company Limited
2.6.3.12.MSIG Insurance
2.6.3.13.QBE Insurance (Thailand) Company Limited
2.6.3.14.Sri Muang Insurance
2.6.3.15.The Viriyah Insurance Co., Ltd.

Pages: 163; Format: PDF
Authors: Jasvita Anand, Akash Rakyan & Nishith Srivastava

List of Tables

Table 1: Macroeconomic Trends: Population (mil.) vs. Nominal GDP ($ bil.) – 2002-2011f
Table 2: Macroeconomic Trends: GDP per basic ($ bil.) vs. Real GDP Growth (%) – 2003-2011f
Table 3: Growth Trends: Inflation (2002-2008f)
Table 4: Key Economic Indicators Forecast – 2007-2012f
Table 5: Growth Trend Comparison: GDP Growth vs. Insurance Growth (%) – 2000-2011
Table 6: Thailand Insurance Market Value ($million): 2000-2007
Table 7: Thailand Insurance Market Value Forecast ($million): 2007-2011f
Table 8 : Insurance Density: Premiums Per Capita in USD
Table 9: Insurance Premium in % of GDP (2001-2011f)
Table 10: Growth Trend of Life Insurance and Non-Life Insurance ($Million): 2000-2011f
Table 11: Thailand Life Insurance Market Value ($million): 2000-2007
Table 12: Thailand Life Insurance Market Value Forecast ($million): 2007-2011f
Table 13: Thailand Non-Life Insurance Market Value ($million): 2000-2007
Table 14: Thailand Non-Life Insurance Market Value Forecast ($million): 2007-2011f
Table 15: Thailand Insurance Sector: Projections of Macroeconomic Drivers (2006-2010f)
Table 16: Market Share of Top Players in Life Insurance Sector: Comparison amid 2006 & 2007 (Million Baht) and their Growth (%)
Table 17: Life Insurance Total Premium Growth Year on Year by Company 2006-2007 (%)
Table 18: Life Insurance Market Growth by First Year Premium of Top Companies: Comparison amid 2006 & 2007 (mn Baht)
Table 19: Life Insurance Market Growth by First Year Premium of Top Companies: Comparison amid 2006 & 2007 (%)
Table 20: Life Insurance Premium Renewal (million Baht) and Growth (%) Year on Year for Top Companies (2006-2007)
Table 21: Life Insurance Renewal Market Share of Top Companies in 2007 (mn Baht)
Table 22: Life Insurance Single Premium Market Share of Top Companies in 2007 (mn Baht & % growth)
Table 23: Loss Ratio of Non - Life Insurance Business (2007)
Table 24: Marine and Transportation Companies: Markey Share by Direct Premium (Unit: 1,000 Baht)
Table 25: Automobile Insurance Top companies by Direct Premium (2007)
Table 26: Top Miscellaneous Non-Life Insurance Companies: Market Share by Direct Premium (%) – 2007
Table 27: Top Industrial All Risk Non-Life Insurance Companies: Market Share by Direct Premium – 2007
Table 28: Top Public Liability Non-Life Insurance Companies: Market Share by Direct Premium – 2007
Table 29: Top Engineering Non-Life Insurance Companies: Market Share by Direct Premium (%) – 2007
Table 30: Top Aviation Non-Life Insurance Companies: Market Share by Direct Premium – 2007
Table 31: Top Health Insurance Companies: Market Share by Direct Premium – 2007
Table 32: Top Personal Accident Insurance Companies: Market Share by Direct Premium – 2007
Table 33: Top Other Non-Life Insurance Companies: Market Share by Direct Premium – 2007

List of Charts

Chart 1: Macroeconomic Trends: Population (mil.) vs. Nominal GDP ($ bil.) – 2002-2011f
Chart 2: Macroeconomic Trends: GDP per basic ($ bil.) vs. Real GDP Growth (%) – 2003-2011f
Chart 3: Growth Trends: Inflation (2002-2008f)
Chart 4: Key Economic Indicators Forecast (2007-2012f)
Chart 5: Growth Trend Comparison: GDP Growth vs. Insurance Growth (%) – 2000-2011f
Chart 6: Thailand Insurance Market Value ($billion): 2000-2007
Chart 7: Thailand Insurance Market Value Forecast ($million): 2007-2011f
Chart 8: Insurance Density: Premiums Per Capita in USD
Chart 9: Insurance Premium in % of GDP (2001-2011f)
Chart 10: Thailand Insurance Market: Segment Share 2007
Chart 11: Growth Trend of Life Insurance and Non-Life Insurance ($Million): 2000-2011f
Chart 12: Thailand Life Insurance Market Value ($million): 2000-2007
Chart 13: Thailand Life Insurance Market Value Forecast ($million): 2007-2011f
Chart 14: Thailand Non-Life Insurance Market Value ($million): 2000-2007
Chart 15: Thailand Non-Life Insurance Market Value Forecast ($million): 2007-2011f
Chart 16: Market Segmentation of Non-Life Insurance (%): 2007
Chart 17: Market Segmentation of Non-Life Companies by Ownership 2007 (%)
Chart 18: Comparison of Direct Premiums of Non - Life Insurance Business (2007 & 2006)
Chart 19: Direct Premium per Insurance Policy for 2007-2006 (Baht)
Chart 20: Comparison of Sum Insured Per Premium of Non - Life Insurance Business Segments (2007 & 2006)
Chart 21: Loss Ratio of Non - Life Insurance Business (2007)
Chart 22: Market Share of Top Life Insurance Companies by Total Premium in 2007 (%)
Chart 23: Life Insurance First Year Premium Market Segment in 2007 by Top Companies(%)
Chart 24: Life Insurance Premium Renewal (million Baht) and Growth (%) Year on Year for Top Companies (2006-2007)
Chart 25: Life Insurance Renewal Market Share of Top Companies in 2007 (%)
Chart 26: Single Insurance Premium Company Segmentation 2007
Chart 27: Fire Insurance Companies – Market Share (%): 2007
Chart 28: Marine & Transport Insurance Segment Share (%): 2007
Chart 29: Cargo and Hull Market: Direct Premium Share (%) in 2006-2007
Chart 30: Marine and Transportation Companies: Markey Share by Direct Premium (Unit: 1,000 Baht)
Chart 31: Market Share of Automobile Insurance Sub Sector 2007
Chart 32: Automobile Insurance Top Companies – Market Share by Direct Premium (%) – 2007
Chart 33: Market Share of Miscellaneous Non-Life Sector (%) – 2007
Chart 34: Top Miscellaneous Non-Life Insurance Companies: Market Share by Direct Premium (%) – 2007
Chart 35: Top Industrial All Risk Non-Life Insurance Companies: Market Share by Direct Premium (%) – 2007
Chart 36: Top Public Liability Non-Life Insurance Companies: Market Share by Direct Premium (%) – 2007
Chart 37: Top Engineering Non-Life Insurance Companies: Market Share by Direct Premium (%) – 2007
Chart 38: Top Aviation Non-Life Insurance Companies: Market Share by Direct Premium (%) – 2007
Chart 39: Top Health Insurance Companies: Market Share by Direct Premium (%) – 2007
Chart 40: Top Personal Accident Insurance Companies: Market Share by Direct Premium (%) – 2007
Chart 41: Top Other Non-Life Insurance Companies: Market Share by Direct Premium (%) – 2007

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Established in 2007, “The Knowledge Centre” caters to audience in Financial Services Sector globally. Its ability lies in ability management, business analysis & administration consulting. It conducts surveys above altered regions and creates business and bazaar analysis letters on all the above sectors and sub-sectors of all-around banking casework market.

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