Insurance

After a short-lived slowdown related to political uncertainty, economic weakness and the ending of a first-time car-buyer scheme, the insurance sector in Thailand is beginning to grow again at a healthy pace. Given the relatively low penetration rate, the increasing incomes in the country and the ageing population, it is expected that the sector will soon expand again at or near its historically fast rate. Regulatory changes are helping to improve the safety and soundness of the sector, and slowly allowing for more foreign participation. However, high household debt remains a concern and could stand in the way of a rapid recovery, while consolidation remains a work in progress. Some regulatory fixes and additional liberalisations are needed if the number of insurers is to be reduced. This chapter contains an interview with David Korunic, CEO, Krungthai-AXA Life Insurance.