18-05-2021
Thailand:4 trends signal the insurance sector will never be the same again
Insurance AlertssThailand:4 trends signal the insurance sector will never be the same again
The Thai insurance industry is seeing four trends that are changing the sector, according to Dr Mahatana Ampornpisit, managing director of Thai Insurance (TIC), a non-life insurance unit of Thai Group Holdings.
In an article on the Prachachat.net news website, he identifies the four trends as:
1.Digitalisation
Since the COVID-19 outbreak in early 2020, more people have been introduced to buying insurance online for the first time. The online service operates 24 hours a day, allows payments online, issues an electronic policy and makes buying insurance fast and easy.
Digital technology has great potential to enhance post-sales insurance services as well. An example lies in car insurance. If there is an accident on the road, a claim can be made online. Policyholders can also choose repair garages and track the vehicle repair status online at any time.
Looking ahead, 5G networks and IoT devices will connect everything. The Thai IoT market is forecast to grow from a value of THB3.6bn ($115m) in 2018 to nearly THB66bn by 2030.
2.Untapped demand for insurance from individuals and businesses
Untapped demand for insurance was evident during the COVID-19 period when people snapped up COVID-19 insurance.
Furthermore, there is a new target customer group that the insurance industry is very interested in, which is Generation C, comprising people who are connected according to their lifestyles and interests.
Also expected is demand for insurance coverage in previously uninsured areas like cyber security, fishery and new supply of infrastructure and public and private property. In addition, trends including an aging society or climate change will turn everyone's attention to insurance to reduce risk.
3.More personalised and affordable insurance plans
There will be innovations and new products, especially with the deployment of IoT devices. Connecting real-time data and AI will also help insurance businesses better understand each consumer.
When there is more insurance supply, economy of scale can be obtained that enables the Thai insurance industry to offer a wide variety of coverage to more and more people, at a lower price. In addition, a portfolio of insurance businesses with a wide range of products will help reduce risk.
4.Insurance serves as platform to reach other services
When insurance is available in every aspect of Thai life, insurance business will have to transform itself into a platform that connects both the front-end and the back-end with various partners so as to integrate insurance with a wide variety of products and services. Online channels will increase leads and reach more specific customer groups. Insurers have the opportunity to create new partnerships with other businesses such as offering fire insurance when the customer is buying a home; accident insurance when buying or renting a car; travel insurance when booking plane tickets, etc. Non-insurance partners can add to insurance by offering related products and services, such as installing alarms or security systems for those buying home insurance, or providing audit services for IT systems when the customer buys cyber insurance. These help the insured realise that the total package helps reduce risk.
The Thai insurance industry is in an important transition period, with the growing role played by technology that helps make insurance convenient, cost-effective and personalised. New partners also help increase the attractiveness of insurance.
Source: Asia Insurance Review
