Page 96 - TGIA_AnnualReport2014

Message from

TGIA President

In 2014, Thai economy had been significantly volatile.
Political factor created psychological impact on confidences of
investors and people in general as consumers. The Fiscal Policy
Office (FPO) projected that Thai economy in 2014 would expand at
0.7%, a decrease from 1.4% previously projected and from 2.9%
in prior year. Likewise, Bank of Thailand (BOT) forecasted that the
economy would grow at 0.8%. For private sector consumption, the
FPO forecasted the growth to be 0.5% due to an improvement in
consumers’ confidence as a result of better political atmosphere in
the latter half of the year. Private investment shrank by 2.1%
because private sector waited to observe the trend of public
investment and for economic recovery. For the public sector, the
public consumption expanded at 3.7% while the public investment
declined by 4.7% due to delays in procurements. On the export
side, Thailand’s export of goods and services shrank by 0.6% from
the previous year because export of goods faced some limitations
of trading partner countries’ economy not-yet-fully-recovered and
export of services was affected by loss of confidence of tourists
due to political instability in the first half of the year. Import of
goods and services declined by 4.4% due to a deceleration of
domestic demand.

For insurance business, during the past 12 months in 2014, Office of
Insurance Commission reported that total direct premium was 205,247.5
million baht, an increase of 1.07% compared to the same period last year.
Motor insurance gained the highest proportion of the direct premium at
117,903 million baht, decreasing by 0.45% from the previous year, followed by
miscellaneous insurance which had direct premium at 70,991.6 million baht,
increasing by 5.14% from the previous year. Fire insurance had direct
premium at 11,058.7 million baht, decreasing by 6.4% from the previous year.
Marine and transportation insurance had direct premium at 5,293.9 million
baht, decreasing by 0.16% from the previous year. These were affected by the
growth of Thai economy that expanded at a slower pace than expected.

In the past year, Thai General Insurance Association had undertaken
and conducted many activities, pertaining to the annual plan proposed by the
Board of Directors and approved by member companies. All implementations
were beneficial to the insurance business as a whole. Key operations and
activities are as follows:
Cooperating with Office of Insurance Commission (OIC) in conducting
the market test under the Project of the Development of Risk-Based
Capital Framework Phase 2 (Risk-Based Capital 2) and the stress test
under the Project of Appropriateness Consideration of the Stress Test
Framework for Non-life Insurance Business;

94 รายงานประจำาปี 2557 | Annual Report 2014