Thailand:COVID-19 insurance claims estimated at US$16m as of end-April

The total amount of COVID-19 insurance claims since the pandemic-related policies were launched in March 2020 are estimated to have reached THB500m ($16m) as of the end of April, according to Anon Vangvasu, president of Thai General Insurance Association.

So far, insurers have not reported any net losses from COVID-19 insurance business, he said.

The number of COVID-19 insurance policies jumped by 3.15 m during the three weeks 1-22 April to 13.8m, reported The Bangkok Post. Total premiums received stood at THB5.92bn during this period, while the accumulated value of claims was THB195m. "Both sales and claims surged last month," said Mr Anon. In contrast, the accumulated value of claims for all of 2020, was THB70m.

The situation may change in May and June, he said, as total claims soar and many insurers revise their COVID-19 insurance products and compensation features. Insurers are expected to sell fewer policies that feature a lump-sum payment and instead focus more on protection plans for medical expenses and death.

Thailand's accumulated number of COVID-19 infections exceeds 71,000 cases with roughly 2,000 new cases each day.

Mr Suthiphon Thaveechaiyagarn, the Office of the Insurance Commission secretary-general, said that based on a risk-based capital analysis at the end of 2020, insurance companies' current capital level is not a concern. However, the regulator has asked them to conduct a stress test, which will be concluded by this month.

Source: Asia insurance review