Prudential Thailand promotes health insurance for all

Following the pandemic, an increasing number of people recognised the critical role of health insurance as a backup life plan, he said, even though the number of people actually buying insurance is lower than expected.

“One interesting fact is that Thailand has approximately 38-39% of policyholders out of the total population. It is estimated that more than half of Thai people do not have any form of protection in their lives,” he said.

As a result, more price and condition diversification is required for new products if the varying demands of each market segment are to be met.

Furthermore, he pointed out that insurers will prioritise after-sales services to capture customer loyalty in a more personalised manner.

“Next year's trend in life and health insurance will be a health plan worth the cost of the insurance premium,” he said.

Due to changing trends both in the country and globally, such as an ageing society, the risks and impacts of climate change, as well as issues of social inequality and social division, insurance providers are being challenged to offer the right plan to the right group.

Prudential Thailand’s goal is to make its products more accessible through a variety of channels, demands and prices, he added.

Meanwhile, with young people increasingly concerned about how companies give back to society, potential clients want to see a company’s social projects before deciding to purchase insurance.

This trend is already consistent with Prudential’s policy of fostering positive influences in Thai society through various projects that promote education, health and the environment.

One of these projects is the recently launched “Give The Future” campaign from organisations to society. During this campaign, every new policy will provide free 1-year personal accident coverage to BMA’s outdoor staff as well as government hospital employees worth more than 7 billion baht.

He added that more group coverage will be seen next year.

Furthermore, the company has decided to increase the percentage of its investments in ESG (Environment, Social, and Governance) companies.

Currently, ESG investment accounts for approximately 20% of its total investment portfolio worth 120 billion baht.

Looking ahead, he noted that high interest rates and high household debt are still threats of which insurance providers must be aware.

Nonetheless, the Thai insurance industry’s overall outlook is positive.

According to data analytics firm GlobalData, Thailand’s general insurance sector will see steady growth in the coming years, with a compound annual growth rate (CAGR) of 5.7%, reaching US$ 11 billion or around 373.5 billion baht in 2027.

The report also showed that the sector will reach a peak of $8.1 billion (285.5 billion baht) this year, before increasing by 4.9% in 2023 and 4.8% in 2024.

Prudential Life Assurance (Thailand) has been in operation in Thailand for over 28 years. Currently, the company serves over 1.9 million customers in Thailand and manages over 116 billion baht in assets on their behalf. Its goal is to reach 2 million customers by the end of the year.