Seniors need to plan early to reduce the risk of insufficient retirement funds.
The Thai Life Insurance Association points out that Thais are living longer amidst rising living and healthcare costs. Therefore, retirement planning should begin at a young age. They also recommend choosing insurance based on the risks at different stages of life, reading the terms and conditions before signing, and disclosing health history truthfully.
August 30, 2569 – Ms. Nusra Banyatpiyapoj, President of the Thai Life Insurance Association, revealed during a lecture on the topic "Overview of the Life Insurance Business: The Role of Life Insurance in Driving the Thai Economy and Society" at the 14th Advanced Insurance Science Course (AIS) in 2569, organized by the Office of the Insurance Commission (OIC), that the aging society presents Thais with the risk of living longer but having insufficient funds for a decent life. This risk is further amplified by rising living and healthcare costs. Therefore, retirement planning should begin at a young age, as the later one starts, the higher the monthly savings burden will be.
However, the goal of planning should not stop at simply living longer, but also at maximizing a healthy and self-sufficient life. Therefore, healthcare, disease prevention, and preparing for medical expenses must go hand in hand.
Ms. Nusra stated that , regarding health insurance, the rising cost of medical care due to medical technology and chronic non-communicable diseases is a crucial challenge that requires all parties to work together to strike a balance between protecting consumer rights and the sustainability of the health insurance system. At the same time, the public should understand the concept of co-payment correctly, as it does not mean that all policyholders are required to co-pay for medical expenses every time. Co-payments are based on the rules and conditions stipulated in the policy.
We also recommend "Read Before Signing," advising insurance applicants to disclose information truthfully, especially their health history, and to carefully review the details in the insurance application form before signing. Incomplete or inaccurate information may affect future rights and coverage.
When choosing insurance, it's important to first assess what type of risk you need protection against, rather than considering returns alone. This is because different stages of life present different needs and responsibilities. For example, the breadwinner must consider how their family will survive if they can no longer earn income, while those nearing retirement need to secure sufficient income for the rest of their lives. Those interested in investment-linked life insurance products must also consider their own risk tolerance when making their decision.
Ms. Nusra advised that the goal is not to get as many people as possible to buy insurance, but rather to help people understand their own risks and plan accordingly. Before planning for coverage, people should start with three important questions:
- If income is lost, will the family be able to survive?
- If there are large medical bills, where will the money come from to cover the cost?
- If I have many decades of retirement to live in, will the money I've saved be enough?
AI is transforming the role of agents into advisors.
Ms. Nusra stated that, regarding the role of technology, artificial intelligence (AI) will be involved in the life insurance business from data analysis and underwriting to marketing and customer service. However, this does not mean that the role of life insurance agents will disappear. On the contrary, agents must evolve their role from "sellers" to "consultants and service providers" who can help people assess their needs, understand policy terms and conditions, and provide quality after-sales service.
Meanwhile, in addition to managing risk for the public, life insurance companies play a role in the economic system as long-term institutional investors, investing in government bonds, debt instruments, and other asset classes to manage returns and meet their contractual obligations to policyholders. Therefore, even though regulations allow life insurance companies to invest in new types of assets, investment decisions must still consider return, risk, capital adequacy, and long-term stability.
Furthermore, an aging society presents new challenges in long-term elderly care, including senior living facilities and long-term care services. This is due to smaller Thai families, with younger generations working, while the number of dependent elderly individuals is increasing. Relevant sectors should collaborate to develop high-quality and affordable elderly care services, linking retirement savings, pensions, health insurance, and long-term care services to better meet the needs of the public.
This lecture was part of the 14th Advanced Insurance Science Program, held in 2569, organized by the Office of the Insurance Commission (OIC) to exchange knowledge in insurance and risk management in line with the changes in Thailand's economic and social landscape.
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