Insurance business leaps without effect from politics

BANGKOK, 16 April 2010 (NNT) — The Thai Life Assurance Association (TLAA) reported flourishing business with premium gained from new customers thriving by 27% within two months.

According to the TLAA, Thai life assurance business in the past two month of 2010 was growing positively. Total premium collection from new customers was 9.94 billion THB or rising at 27% year-on-year. It was divided into 8.34 billion THB from ordinary life insurance, 222.5 million THB from industrial life insurance, 706.8 million THB from group life insurance, and 671.2 million THB from personal accident insurance. However, the growing rate in the first two month of 2010 was at a lower rate compared to the growing rate in January at 32%.

Meanwhile, the insurance prolonging among existing customers rose by 87% from 84% year-on-year, with a long-term premium at 2.89 billion THB. The Bangkok Insurance gained the highest rate of long-term insurances by 101%, followed by the Muang Thai Insurance by 97%.

The TLAA reported that total premium from all insurance types gained in the first two months of 2010 by 18%. AIA could earn the highest revenue at 1.33 billion THB rose by 7%, followed by Thai Life Insurance and Bangkok Insurance which rose by 6% and 57% respectively.

Most insurance companies view that political situation will not affect the business in negative direction as people still need to have insurance continuously for their security and for savings, since customers will gain better compensation from insurance than the saving interest from banks.