The Thai General Insurance Association forecasts that premium income will exceed 2569 billion baht by 3, driven by a wide range of risk challenges.
The Thai General Insurance Association assesses the overall industry as remaining strong despite natural disasters, economic volatility, and rising costs. It projects direct premium income to reach 2569 billion baht by 3. The association continues to proactively manage risks across EV, cyber, and ESG sectors. Furthermore, it reiterates that the floods in southern Thailand have not affected the stability of the system, and capital reserves remain at high levels.
December 22, 2025 – Dr. Somporn Suebthawilkul, President of the Thai General Insurance Association, revealed the performance of the general insurance business for the first three quarters (January–September) of 2025, stating that total direct premium income reached 215,103 million baht. The full-year 2025 forecast projects growth of 2.0%–3.0%, with total direct premium income reaching 292,290–295,150 million baht. Looking ahead to 2026, the trend is projected to reach 301,000–303,900 million baht, representing growth of 2.5%–3.5%. This reflects the ability of the Thai general insurance system to manage risk amidst a highly uncertain economic and disaster-prone environment.
"Although 2568 will be a year in which the non-life insurance industry faces risks from several factors, including natural disasters, accidents, and economic volatility, overall performance is still expected to grow, reflecting the strength and adaptability of the industry."
Thai Insurance Research and Development Co., Ltd. (TIRD) has estimated that the non-life insurance business will continue to grow in 2569, with total direct premium income projected to be in the range of 301,000–303,900 million baht, representing a growth of 2.5–3.5% compared to the previous year. However , in 2569, the non-life insurance sector will still face several challenges, including risks from climate change, technological advancements, consumer behavior focusing on more specialized risk management, and new risks from electric vehicles (EVs), cybersecurity, and ESG issues.
In 2569, key challenges to closely monitor include rising costs, particularly repair and spare parts costs for electric vehicles; the frequency and severity of natural disasters affecting fire insurance and IARs; and increasing reinsurance costs. Simultaneously, global trade uncertainty impacts marine and transport insurance, while health insurance faces pressure from medical inflation. All of these factors could significantly affect premium growth trajectories in each segment.
Dr. Somporn stated that, under the complex and rapidly changing risks, the non-life insurance industry has systematically prepared itself by focusing on managing risks from natural disasters and climate change through the appropriate use of disaster modeling and reinsurance. This is coupled with strengthening the stability of the health insurance system through cooperation with the government to control costs and address medical inflation. Simultaneously, emphasis is placed on managing the risks arising from the expansion of electric vehicles in Thailand, which significantly impacts the insurance structure in terms of both frequency and value of claims.
This includes repair and spare parts costs. With electric vehicle registrations increasing by over 54% compared to the beginning of the year, this is an issue that the business sector must carefully monitor and manage risks by supporting the determination of insurance premiums based on actual risk data, spare parts costs, and battery technology. Furthermore, there should be collaboration to develop sustainable electric vehicle insurance standards. The association believes that this approach will strengthen the stability of the non-life insurance system, enhance its ability to withstand various risks, and support the long-term transition of the Thai economy.
Meanwhile, monitoring the situation and assessing the impact of the massive floods in southern Thailand, according to data from the Office of the Insurance Commission (OIC) as of December 15, 2568, there were a total of 62,147 insurance policies with claims for compensation, representing estimated damages of approximately 16,029 million baht. Including further damage assessments, the total estimated damage from this flood is expected to be in the range of approximately 23,000–27,000 million baht.
This includes approximately 25,000 to 30,000 damaged vehicles (around 9,000 to 12,000 in Hat Yai district alone), with estimated damages of 11,000–13,000 million baht, and property insurance totaling approximately 12,000–14,000 million baht.
However, in terms of the proportion of insurance policies affected, the impact remains limited. Voluntary motor insurance in flood-affected areas accounts for only 6.4% and property insurance 11.7% of all policies, which has not yet impacted the stability of the Thai non-life insurance system. The industry still maintains a capital adequacy ratio of over 200%, and reinsurance claims burdens are at a manageable level compared to major past events.
The Thai General Insurance Association affirms that the country's general insurance system remains stable and robust. Capital reserves and reinsurance management are at levels sufficient to withstand the risks of severe events. This incident not only reflects the capacity of the Thai general insurance system to cope with disasters but also underscores the need for proactive risk management and widespread awareness of natural disaster insurance.
"The association will continue to fully dedicate itself to caring for policyholders, strengthening the system's readiness, and enhancing public confidence, so that the non-life insurance system remains a key mechanism for protecting the Thai economy and society sustainably."
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