Politics may bite insurers
The General Insurance Association yesterday predicted that the industry was likely to see premiums drop up to Bt700 million this year due to the political turmoil.
Chai Sophonpanich, association president, said general insurance premiums are expected to be down about 1 per cent from the earlier forecast of Bt80 billion.He said the political crisis should not have a major effect on the insurance business, but economic growth will be affected if the situation is not resolved quickly. "If the crisis does drag on, it might take up to three years for the economy to recover after the protests end," he said. Meanwhile, the Insurance Department is planning to launch a new insurance product for low-income individuals. The new product will cover property damage from fire and other events and the department is working with the association to draw up the types of coverage and the appropriate premiums, said Potjanee Tahnavaranit, director-general of the Insurance Department. Separately, Potjanee said that the department's restructuring plan should be finalised by May. The plan will focus on improving management efficiency and competitiveness of insurance companies to reduce bankruptcies and to cope with the entry of foreign insurers. The department will also set up the National Insurance Council to monitor the Kingdom's insurance as well as insurance brokers. Petchanet Pratruangkrai The Nation
|
