Due to the severe impact of COVID-19 on Thailand’s economy, the non-life insurance market is expected to contract by 5.6% in 2020, according to GlobalData, a leading data and analytics company.

GlobalData has revised Thailand’s insurance forecast in the aftermath of the COVID-19 outbreak. As per the latest data, Thailand’s non-life insurance market is forecast to grow at a compound annual growth rate (CAGR) of 4.1% during 2020-2024.

Madhuri Pingali, Insurance Analyst at GlobalData, comments: “Motor insurance, accounts for 70% share of non-life business. Increasing household debt, prevalent pressure on auto financing and recent lockdown restrictions due to coronavirus outbreak and its economic impact is expected to impact automobile sales in Thailand. This will in-turn impact motor insurers business, which is projected to shrink by 6% in 2020.”

Property insurance is the second largest business line within the non-life insurance segment with 18% market share.  This business line is expected to benefit with increased infrastructure investments as the government has allocated more than THB300bn (US$9.52bn) towards transport and public utility development projects. However, commercial and retail construction activities are expected to decline owing to the lockdown restrictions and ensuing economic slowdown. As a result, property insurance market is also projected to decline by 4.1% in 2020.

Ms. Pingali concludes: “Although, Thailand was successful in containing the spread of virus, the economic contagion has affected numerous industries leading to contraction in Thailand’s non-life insurance market. The fiscal policies adopted by the government to revitalize domestic demand will be key to revival of non-life insurance market in Thailand.”