Page 4 - TGIA_AnnualReport2023_EN

Thai General Insurance Association
4 Annual Report 2023

Message from the President of
the Thai General Insurance
Association

In 2023, the Office of the National Economic and Social
Development Council reported that Thailand’s economy expanded
Development Council reported that Thailand’s economy expanded
by 1.9%, slowing down from the 2.5% growth rate in 2022. The
by 1.9%, slowing down from the 2.5% growth rate in 2022. The
inflation rate stood at 1.2%, supported by factors such as the
inflation rate stood at 1.2%, supported by factors such as the
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well as the continued recovery of the tourism sector. These
well as the continued recovery of the tourism sector. These
factors have contributed to the ongoing recovery trend of the
factors have contributed to the ongoing recovery trend of the
Thai economy.
Thai economy.
For the overall performance of Thailand’s general insurance industry in 2023, direct premiums amounted to 284,866 million
baht, growing by 3.9%. The insurance penetration rate (direct premiums to GDP) stood at 1.59%, while the insurance density
(direct premiums per capita) was 4,057 baht, showing a slight increase from 2022. The key drivers for this growth included the
recovery of economic activities, increased private sector investment driven by higher business confidence, and the resurgence
of the tourism sector, both domestic and international, which revived economic activities. Additionally, Consumers became more
aware of insurance and found insurance products more accessible.
Thai General Insurance Association forecasts that the general insurance industry in 2024 will grow by 5.0-6.0%, with direct
premiums expected to reach 299,050-301,890 million baht. This growth will be supported by the economic recovery, especially
from the tourism sector, expansion in public and private investments, continuous growth in private consumption, and agricultural
sector expansion. However, the Thai economy remains subject to various risks, including global financial market volatility,
fluctuating monetary policies across countries, geopolitical issues, economic conflicts impacting international trade, as well as
domestic political uncertainty. These factors collectively pose significant challenges for the general insurance sector in Thailand.
In 2023, Thai General Insurance Association played a crucial role in promoting insurance as a risk management tool,
contributing to sustainable economic stability, and building trust among all stakeholders. The association’s work focused on
four key missions, with notable successes in the past year:
Mission 1: Enhancing the image of the insurance industry to gain recognition at the international level, with a focus on
social and environmental responsibility. The association worked on public relations campaigns to improve public understanding
of general insurance and promote a positive image. It also promoted ESG (Environment, Social, and Governance) initiatives
within the industry.
Mission 2: Strengthening confidence and trust in the insurance industry’s role as a professional risk manager for both
public and private sectors. The association supported the establishment of a central insurance data hub to maximize benefits
for society and individuals. It also pushed for industry self-regulation and advocated for liberalization in certain areas. Moreover,
the association worked with the government to implement measures promoting general insurance as a risk management tool
to reduce the burden on the government, such as: The 2024/25 Crop Insurance Program. The Thailand Traveler Fee (TTF), or
“land entry fee,” to provide insurance for foreign tourists traveling within Thailand. Collaboration with the Department of Land
Transport on linking compulsory motor insurance data. Support for farmers affected by disasters using science and technology
in crop insurance, in collaboration with the Department of Agricultural Extension and Thaicom Public Company Limited. The
“Utilization of Insurance Bureau System Data” project, aimed at enhancing the use of data from the central insurance database
(Insurance Bureau System: IBS).