Bangkok: The Thai general insurance sector is anticipated to experience a slowdown in the second half of 2025, attributed to the impact of US tax measures and delays in electric vehicle (EV) purchases.
According to Thai News Agency, Mr. Somporn Suebthavilkul, President of the Thai General Insurance Association, shared insights during a seminar titled 'Unlocking Thailand's Future, Fighting the Global Crisis,' organized by MCOT Public Company Limited. He noted that the first half of 2025 showed promising growth in the general insurance business with a 3% increase. However, the latter half is expected to see a deceleration due to the US's retaliatory tariffs, which have notably impacted Thailand's export sector. Despite this, the general insurance business is expected to face a moderate impact as Thailand's export market has diversified beyond the US.
Mr. Suebthavilkul also highlighted the potential for growth through increased investment from both public and private sectors and a possible rise in tourism towards the end of the year. He mentioned the government's use of the insurance system for managing risks, which could further boost the general insurance business and stimulate economic growth. The prediction for overall growth in 2025 for the general insurance sector is set at 1.5 - 2.5%.
Despite signs of a slowdown in EV purchases, which directly affect motor insurance-comprising 55% of non-life insurance-the non-life insurance sector is still expected to grow. A significant concern remains the recurring annual flooding in Thailand, which impacts the loss ratio of non-life insurance businesses. However, this recurrent issue also encourages businesses to manage risks through insurance, potentially leading to increased usage of insurance systems.