Expect tighter competition in Thailand next year, Prudential CEO says

The Thai insurance sector is poised for increased competition in the coming year, with a surge in public awareness about health insurance, according to Bundit Jiamanukoonkit, CEO of Prudential Thailand.

In a report from The Nation, Jiamanukoonkit, who heads one of Thailand's prominent insurance providers, shared insights into the industry's dynamics post-pandemic. He observed that the pandemic has heightened the recognition of health insurance as a vital component of financial planning. However, the actual uptake of insurance policies remains below anticipated levels.

Only about 38-39% of Thailand's population holds insurance policies, leaving more than half without any form of life protection. To address the diverse needs of different market segments, Jiamanukoonkit suggested that insurance products need to offer more variety in pricing and terms. Additionally, he emphasised the significance of after-sales service in building customer loyalty through personalisation.

He also predicted that the upcoming year would see a focus on health insurance plans that provide value commensurate with their premiums.

Prudential Thailand is aiming to broaden the accessibility of its products through various channels, catering to different demands and price points. The company is aligning with the growing trend among young consumers who evaluate a company's social responsibility efforts before purchasing insurance.

In line with this, Prudential Thailand is committed to contributing positively to Thai society, focusing on projects that support education, health, and environmental sustainability. The company has also increased its investment in ESG (environment, social, and governance) companies, which currently comprises about 20% of its total investment portfolio of THB120 billion.

While acknowledging the challenges posed by high interest rates and household debt, Jiamanukoonkit expressed an overall positive outlook for Thailand's insurance industry.

Prudential Life Assurance (Thailand) has been serving the Thai market for over 28 years, currently managing assets worth over 116 billion baht for more than 1.9 million customers. The company is aiming to expand its customer base to 2 million by the end of the year.

Elsewhere in the country, a Phuket hotel, whose operations were disrupted due to the COVID-19 pandemic, has secured a victory in a Singapore court case, compelling two insurers to provide payouts for the losses incurred by the resort.

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