High farm prices prove a boon to insurance

Rising farm prices have benefited the insurance market, which is expected to grow 12 per cent to Bt340 billion this year despite the economic slowdown and ongoing political uncertainty.

Life-insurance premiums are expected to grow 14-15 per cent to Bt230 billion, while general insurance will increase 7 to 8 per cent to between Bt108 billion and Bt110 billion.

The Office of the Insurance Commission (OIC) yesterday reported the Kingdom's life-insurance premiums had jumped 13 per cent to Bt102.9 billion and non-life insurance had grown 5.36 per cent to Bt52.8 billion in the first half of the year.

Last year, the insurance sector was valued at Bt302.63 billion, of which Bt201.98 billion was for life insurance.

Secretary-general Chantra Purnariksha said rising farm prices had prompted people to purchase more policies, in order to secure their money for the future.

"The value of insurance premiums should meet the target set for this year, because people understand the importance of planning and saving for the future despite some negative factors affecting income, including rising consumer-goods prices and political uncertainty," she said.

To increase people's awareness of insurance, the OIC is cooperating with private insurers to launch a new policy this year for long-stay tourists.

This new type of policy will cover foreign travellers planning to stay in Thailand longer than a month. They will be paid in the event of an accident while here.

The OIC will announce policy details soon.

In addition, to increase protection for new auto-insurance policyholders, all clients will be protected immediately upon buying their policies.

This new "cash before coverage" rule will take affect early next year. Up to now, new policyholders had to wait 30 to 60 days until they received their policy to be protected.

Meanwhile, two cash-strapped companies - Thanasin and Sampanh - have been urged to find new investors soon, in order to protect themselves from financial difficulties and possible closure.

Chantra said Thanasin must fulfil its debt obligation to the Insurance Fund by September 15. Sampanh has promised to improve its financial status by finding new investors by October 15.

Sampanh reported it would settle a new contract with a new buyer soon. Thanasin said it would contribute the amount it owed to the Insurance Fund once it finalised its deal.