Top Insurance Companies in Thailand’s Health Insurance Market

November 27, 2024 November 27, 2024

One of the impacts of the Covid Epidemic has been to raise the awareness of Customers Worldwide of their need for Health Insurance. Whilst it initially challenged Insurance Companies’ claims most companies responded by paying the claims and then launching new Health products to meet the additional risk. At least three companies – Prudential Life Assurance (Thailand) Public Company (PLT), Krungthai-AXA Life Insurance Public Company Limited (KTAL) and FWD – made Health a major part of their Corporate profiling in their promotional efforts.

The Current State of Thailand’s Health Insurance Market

So, how are Health sales doing in Thailand?
Individual Health Insurance sales represent 13.5% of all Product sales in the Thai Life Insurance market, which is down slightly on 2023 to September. Whilst “All Product” sales have grown at 4.6% the Health Insurance segment has only grown by 4.2%.

AIA is the clear Health Market Champion delivering a massive 52.7% of sales in the Health segment. It is also number 1 in the total Thai market with 23.5% market share. They are growing their Health sales 124% faster than their total sales.

In 2024 only three other companies are growing their Health Market Share faster than their share in the total Thai Life Market – Thai Life Insurance (TLI), Allianz Ayudhya Assurance (AZAY), and Tokio Marine Life Insurance (Thailand) (TMLTH). This means that 17 companies are experiencing a Health Sales Market Share that is less than their total market Share.

As I said earlier PLT, KTAL and FWD are all taking a market position in their Advertising and promotional efforts. The numbers say that this positioning is far from yielding the results needed to support their investment in the product sector.

The table says that so far this year the Top 5 companies have delivered 84% of all Health sales in the Life Market. It also identifies that the smaller companies are struggling to make Health Insurance significant in their product portfolio. Let’s look at the columns “Health as a percentage of total sales.”

What do we see:

A. The Health product share of total sales is higher than the Industry number of 13.5% in only four companies.
B. So, 17 companies experience lower Health sales than the market generally.

Why could this be?

1. AIA has the largest Agency channel and has, clearly, been able to convince Agents of the potential to make good sales. Have you won your distributors over to selling Health products?

2. How is your compensation structured? Are you using contests to promote the Agent’s efforts in the Health Market? Have you trained them all in the new products you have? Learn from the best – AIA.

3. How well do your Health products match the market needs?

a. High Net Worth customers have elevated expectations:
- i. Choice of Medical Services across Asia and maybe the leading Doctors and Hospitals of the West.
- ii. Second opinions.
- iii. Specialist Cancer Care
- iv. Concierge services, etc.
- v. Talk with #Indranil Dey who has valuable experience and Health product additions you can build into your HNW product offering.
b. Mass Market customers are searching for a product solving their families’ medical needs – Inpatient and Outpatient.
c. Micro Market needs a low-cost simple solution to their medical insurance needs. As far as I know this is an untapped market so far suggesting perhaps that companies have been unable or are unwilling to enter this market.
d. Talk to #AngelaHunter who has many valuable suggestions on the Health market.

4. How well are your products priced? Thailand is not a price sensitive Market with most sales being made on the strength of the distributor’s relationship with potential customers (Agents and Bank Staff). Can you afford to motivate the customer and/or the Distributor more?

5. How simple is your underwriting? Can you price a little higher to reduce your medical history requirements? Remember in the Life Insurance business you can only sell Health as a Rider to a base plan (Endowment or Whole Life). Is the Agent worried about losing the base plan if he must push the customer through tougher medical requirements when a medical plan is added?

6. Is it simply a Corporate concern about “risk”? Consider working with your CRO about building a “special contingency reserve” outside of the product to cover a worst-case scenario. For smaller companies this could be a way of enjoying the potential of this important market.

7. Lastly, and importantly, consider partnering with one of the Specialist Health Corporations like #LivWell to build sophisticated products together and share the associated risks.

I hope some of the above triggers some ideas for you to expand your company’s contribution to Thai Customers in the Health Market. The track record is downhill!

Thai Customers need you.