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Published on December 21, 2007

The Office of the Insurance Commission (OIC) yesterday said growing awareness of insurance among consumers and concern for future income would be behind the increase.

The OIC is also optimistic that insurance in relation to gross domestic product (GDP) will increase to 3.55 per cent, from 3.45 per cent now.

This is the first estimate by the OIC, which wants to create a mission for business growth after turning into an independent organisation. GDP is expected to reach Bt8.8 trillion next year.

Secretary-general Chantra Purnariksha said the increase in policies would raise the value of insurance 8 per cent to Bt312.69 billion next year.

Out of 51.25 million policies next year, 33.75 million will be life insurance and 17.5 million non-life insurance. Life insurance policies will jump 12 per cent from 31.09 million policies this year and non-life by 9 per cent from 15.56 million policies.

The total value of life insurance will grow 7 per cent to Bt199.7 billion and non-life by 8 per cent to Bt122.96 billion.

Chantra said people would purchase more policies, because they realised the importance of planning and saving for the future. The lower costs of life and non-life insurance will also attract more policyholders, she said.

Thai Life Assurance Association president Sara Lamsam said insurance firms were confident of achieving their targets next year, through efficient marketing to draw more buyers.

"Insurers are offering a greater variety of products for consumers," she said.

Petchanet Pratruangkrai

 The Nation