Thailand Insurance Market and Technology Overview
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.