The Thai Life Assurance Association has said life insurance premiums are likely to decline over the long term because people are living longer, but pension and health insurance premiums are likely to increase. Mr. Sara Lamsam, vice president for marketing, said protection, term and whole life premiums need to be adjusted down, while pension premiums must be recalculated because companies have to pay pensions for longer. Health premiums are under pressure from medical inflation averaging 10 percent per year, as well as more deaths among younger cancer patients and higher-cost treatment technology. Mrs. Nusara Banyatpiyaphod, president of the Thai Life Assurance Association, said the co-payment measure has helped people be more careful about unnecessary hospital stays. The proportion of claimants subject to co-payment fell from 4 percent to no more than 1 percent, and it helped slow medical inflation in 2025 from a projected 15 percent down to 10.8 percent. The persistency rate for annual renewal policies stood at 84 percent, accounting for 72 percent of total premiums received, while the insurance penetration rate in the first quarter fell to 3.68 percent of GDP because of product restructuring under IFRS 17 and low interest rates. This has led companies to focus more on participating, unit-linked and protection products instead of savings products with high guaranteed returns. The ratio of policies to population remained stable at 38 to 39 percent.
Dhipaya Life Insurance Launches Aomsin Annuity The Series, Allowing Pension Plan Adjustments With No Premium Increase
Dhipaya Life Insurance Public Company Limited has launched two life insurance products, Aomsin Annuity The Series and Aomsin Endowment The Series, to serve the aging society and modern retirement planning. Aomsin Annuity The Series is the first in Thailand to allow policyholders to adjust the age at which they begin receiving their annuity and the age at which annuity payments end, up to two times before age 59, with premiums remaining unchanged. Policyholders can choose monthly or annual annuity payments, with four payout period options: starting at age 60 or 65 and continuing until age 85 or 90. Annual annuity payments reach as high as 33.5% of the sum insured under the 85/65 plan, or total annuity payments of up to 780% of the sum insured under the 65/90 plan. No medical examination or health questionnaire is required, and premiums can be deducted for tax purposes up to 300,000 baht. Aomsin Endowment The Series is a 60/10 savings-type life insurance policy with premiums paid for only 10 years. Policyholders receive 10% of the sum insured every year from the 11th policy anniversary through the 59th year, and a lump sum of 1,000% of the sum insured upon reaching age 60. It also allows a tax deduction for general life insurance premiums of up to 100,000 baht. Nopporn Boonlaphop, Chief Executive Officer of Dhipaya Life Insurance Public Company Limited, said the company is focused on developing products that align with Thailand's transition into a fully aged society and a super-aged society, and that several more series of products to serve the aging society will follow. Those interested can inquire at any Government Savings Bank branch or the GSB Contact Center at 1115.
US Annuity Sales Hit Record $228.7 Billion in First Half
US annuity sales set a first-half record of $228.7 billion, up 1% from the prior-year period, according to LIMRA. Total second-quarter annuity sales reached $121.2 billion, up 2% year over year, the 11th consecutive quarter above $100 billion. Within that total, registered index-linked annuity sales rose 22% to $23.3 billion, traditional variable annuity sales jumped 24% to $17.7 billion, and single-premium immediate annuity sales hit a record $4.1 billion. The broader life market showed similar momentum, with S&P Global Market Intelligence reporting US life premiums up 7.7% year over year in the second quarter and individual life premiums up 4.1%, while LIMRA said the individual life policy count rose 8%. Against that backdrop, Zacks named Prudential Financial, Principal Financial Group and MetLife as three life insurers to watch, each carrying a Zacks Rank #3 (Hold); Prudential posted $3.6 billion in retail annuity sales in the second quarter, Principal reported transfer deposits of $9 billion, up 30%, and MetLife's Retirement and Income Solutions segment generated $377 million in adjusted earnings.
Thai Chamber of Commerce says average household debt surges to 790,000 baht, highest in 18 years
The Center for Economic and Business Forecasting at the University of the Thai Chamber of Commerce released the results of its survey on the state of Thai household debt for 2026, finding that average household debt stood at 794,945.49 baht per household, up 7.3%, the highest level since the survey began in 2009, or in 18 years. Of this, 77.2% was formal debt and 22.8% informal. Total monthly repayments came to 21,935.3 baht, up 8.11%. Umakamol Sunthonsurat, assistant director of the Center for Economic and Business Forecasting, said more than half of Thai households lack sufficient emergency savings and that the savings trend continues to decline, with 27.8% of respondents saying they had never saved and 42.6% saying they had not saved compared with the previous year. Thanavath Phonvichai, president of the university and chairman of the advisory board of the Center for Economic and Business Forecasting, said older people who have retired and have no steady income still carry average debt of nearly 300,000 baht, reflecting that Thais cannot ease their debt burden even 10 years after retirement, and that only about 14% of people manage to save according to plan before retirement. The center also maintained its forecast for Thai GDP in 2026 at 2.0-2.5%, supported by agriculture, tourism, with foreign arrivals expected to average 3 million a month and generate 150 billion baht a month, and exports expanding 15-20%. The ratio of household debt to GDP is expected to continue falling, reaching 84% within 2026.
