The Thai insurance market remains stable, but faces challenges driven by slow economic growth and political uncertainty, according to Paul Frankland, Vice President of Aon’s Commercial Risk Solutions in Thailand. Despite these constraints, the market has shown improvements in preferred property risks and cyber insurance.
The latest Aon Q4 2024 Global Insurance Market Insights Report highlights that losses from severe flooding in northern Thailand in September are expected to influence property renewals in 2025. The report also notes that political instability is limiting short-term growth prospects for the insurance sector.
In response to increasing risks, insurers are placing a strong emphasis on the quality of risks they underwrite. Some areas, such as cyber, directors and officers (D&O), and specific low-hazard property risks, have seen price reductions. However, insurers are maintaining cautious approaches towards flood-prone regions, where stricter underwriting practices are being applied, including higher deductibles and reduced coverage limits.
While the overall capacity for most risks remains adequate, the ongoing flooding concerns in certain regions have prompted underwriters to impose more rigorous requirements for detailed risk assessments. Expiring coverage limits and deductibles are still largely available, but adjustments may occur in flood-prone areas to mitigate exposure.
The automobile insurance market continues to be competitive, though electric vehicle coverage is becoming more restricted due to unfavorable loss experience. The liability market remains stable, with international insurers playing a key role in driving competitive pricing.
Cyber insurance continues to be advantageous for buyers, with prices declining, particularly for excess layers. However, insurers are increasingly focused on risk management and cybersecurity, with some now requesting information on risks associated with artificial intelligence.
Meanwhile, the directors and officers (D&O) insurance segment benefits from competitive conditions, providing opportunities for broader coverage and premium savings.
In the property insurance segment, competition is enhancing conditions for low-hazard risks. However, flood-exposed properties may face rising prices due to recent flood-related losses, reflecting the heightened risks in these areas.
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