Growth Rate Lowered by 1%p Due to Economic Slowdown

The Thai General Insurance Association (TGIA) announced on the 23rd that it has revised down its 2025 non-life insurance industry growth forecast from 3.5% to 2.5%. The primary driver is the overall slowdown in Thailand's economy.

In an interview with the Bangkok Post, TGIA President Somporn Suebthawilkul stated, "If the new government can restore consumer and business confidence, it will have a positive effect on domestic spending and the overall economy," suggesting that 2026 could see higher growth rates than this year.

Natural Disaster Risks: Both Frequency and Magnitude Increasing

The biggest variable facing Thailand's non-life insurance industry is the intensification of natural disasters. President Somporn pointed out, "In the past, flooding occurred once a year in limited areas, but now damage occurs multiple times throughout the year in numerous regions."

Accordingly, insurance companies are strengthening disaster risk assessments and building risk management systems utilizing innovative technologies. In particular, discussions are underway on systematically categorizing risk zones through flood zoning systems and applying this to premium calculations and portfolio management.

TGIA has proposed real-time updates to a digital flood risk map that can be jointly utilized by public and private sectors, and enhancing spatial risk assessment capabilities by combining Internet of Things (IoT) with Geographic Information Systems (GIS).

Digital Transformation and AI-Based Innovation Accelerating

Thailand's non-life insurance industry is accelerating innovation across products, services, and business models. President Somporn emphasized the urgency of digital transformation, stating, "Consumers now expect to seamlessly handle everything from policy purchase to claims filing through their smartphones."

In the auto insurance sector, work is underway to establish standard benchmark prices for vehicles and repair costs using AI and big data. This enables real-time reflection of market conditions, increases transparency in premium calculations, and reduces claims disputes.

In accident and health insurance, wellness programs, telemedicine, AI health assistants, predictive risk detection systems, and automated instant claims processing systems are attracting attention as key innovation drivers.

Artificial Intelligence (AI), big data, blockchain, Internet of Things (IoT), and sensor technologies play central roles in data analysis and proactive risk management. President Somporn emphasized, "The key is predicting and responding before problems occur, even acting before customers fully recognize their needs."

2026 Growth Drivers: General Election and Economic Stimulus

TGIA expects the industry's growth rate in 2026 to exceed this year's. The main drivers are expected to be the new government's fiscal stimulus measures and increased liquidity ahead of the general election.

President Somporn presented an optimistic outlook, stating, "Post-election increases in consumer and business spending will have a positive impact on non-life insurance industry growth."

Changes in Consumer Behavior and Trust-Based Purchasing Increase [AI Analysis]

New-generation consumers have gained higher information accessibility, enabling them to compare insurance products quickly and efficiently. Insurance is no longer simply a product for fulfilling legal obligations, but is being selected based on whether it provides real value grounded in trust.

These changes demand that insurers strengthen product transparency, improve digital experiences, and build proactive risk management capabilities. In particular, AI-based personalized services and real-time risk assessment systems are likely to become key competitive factors going forward.

Thailand's non-life insurance market's 2026 growth rate will likely depend on the effectiveness of fiscal policies and the frequency of natural disasters. Companies that establish digital transformation and data-based risk management systems early are likely to lead the market.