Thailand’s life insurance sector is expected to reach THB781.7 billion (US$23.1 billion) in gross written premiums (GWP) by 2028, according to projections from GlobalData.
This forecast indicates a compound annual growth rate (CAGR) of 4.4% starting from THB660.4 billion (US$19.2 billion) in 2024. It has been released as the country’s general insurance market is expected to grow at a CAGR of 4.5% from 2024 to 2028.
Data from GlobalData’s Insurance database revealed that the Thai life insurance sector is set to grow by 3.7% in 2024, driven by rising health awareness and evolving demographic trends that highlight the importance of financial planning, particularly for the aging population.
Aarti Sharma, insurance analyst at GlobalData, noted that Thailand’s life insurance market experienced a 3.7% growth in 2023, supported by factors such as an aging population, a growing expatriate community, and increased health awareness. She anticipates these factors will continue to drive growth through 2024 and 2025.
Whole life insurance is projected to remain the largest segment within Thailand’s life insurance sector, expected to represent 60.3% of the GWP in 2024. The segment’s growth correlates with the country’s increasing average life expectancy, which was 77.9 years in 2023 and is forecasted to reach 79.6 years by 2030.
Whole life insurance, which provides lifelong coverage, is particularly appealing to Thailand’s aging population. This segment is expected to grow at a 3.7% CAGR from 2024 to 2028.
The second-largest segment, supplementary or rider insurance, is predicted to hold a 22.3% share of the market in 2024. This segment’s growth is attributed to demographic shifts and the expanding expatriate population, with health riders offering flexible and customisable coverage becoming increasingly popular.
The CAGR for this segment is anticipated to be 5.4% over the 2024-to-2028 period.
Endowment insurance, another significant segment, is expected to account for 5.2% of the total life insurance GWP in 2024.
The segment saw a 4.3% rise in GWP in 2023, while linked insurance premiums declined by 7.6%, reflecting consumer preference for products with more secure returns amid uncertain financial markets. Endowment insurance is expected to expand at a 5.2% CAGR from 2024 to 2028.
Other life insurance products, including pension, universal life, and personal accident and health insurance, are projected to collectively make up 12.2% of the GWP in 2024.
Sharma said the life insurance sector in Thailand is likely to see steady growth over the next five years.
“The life insurance market in Thailand is set to experience steady growth over the next five years, with demographic changes driving the demand for life insurance. Products catering to the growing needs of a rapidly aging population are expected to be a focus area for insurers over the coming years,” she said.
