1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Bancassurance in Thailand: Life, Non-Life and Creditor Insurance

Bancassurance in Thailand: Life, Non-Life and Creditor Insurance is a study and related PartnerBASE dataset examining the provision of life, non-life and creditor insurance by banks and other lending institutions in Thailand.

Drawing on the results of a survey of 44 banking entities in Thailand, the study verifies the percentage of organisations investigated that distribute each of the following 13 types of insurance: accident insurance, creditor insurance related to consumer finance, creditor insurance related to credit cards, creditor insurance related to mortgages, critical illness insurance, health / hospital cash plans, household insurance, income protection insurance, investment-related life insurance, medical expenses insurance, personal motor insurance, retirement savings, and risk life insurance.

For those banking entities that are active in one or more of these fields, the reports ascertain the operating models that they use to source the type of insurance in question (e.g. external, joint venture or captive underwriters) and the identity of the specific providers used. This information is then displayed in terms of the weighted share of partnerships of these providers, which takes into account the number of retail customers of the partner banking entities, thus highlighting those insurance companies that hold the distribution relationships that offer the most potential.

You may be able to use this report, plus the PartnerBASE dataset and market data annexes that accompany it, in one or more of the following ways:

- gain access to a source of information that provides a comprehensive overview of the provision of personal insurance products by all significant banking entities in Thailand;

- identify partnership opportunities for the same personal insurance products that may arise either because a banking institution is not currently active or because there is scope for replacing an existing initiative;

- understand which underwriters and other product providers have been successful in establishing distribution relationships with the most important banking entities in Thailand;

- assess how the evolving regulatory environment may open up or block opportunities for your organisation to sell through the bank distribution channel;

- appreciate the magnitude of the opportunity to sell personal insurance products through banks and other lending institutions in Thailand.

Overall, in a market in which bancassurance claims a distribution share of about 36% in life insurance and 14% in non-life insurance, across the 44 banks and other lending institutions researched in Thailand, Finaccord’s research identified 165 bancassurance distribution initiatives for the various types of insurance investigated.

Table Of Contents

Bancassurance in Thailand: Life, Non-Life and Creditor Insurance
Table of Contents

0 0 EXECUTIVE SUMMARY 1
1 0 INTRODUCTION 3
What is this report about? 3
Distribution partnerships with banks and other lending institutions constitute the focus of this report 3
Rationale 3
Bancassurance is one of the most important distribution channels for life insurance in Thailand 3
Methodology 4
Survey of banks and other lending institutions 4
Market data 4
Definitions 5
Investment-related life insurance 5
Retirement savings 5
Risk life insurance 5
Critical illness insurance 5
Income protection insurance 6
Accident insurance 6
Health / hospital cash plans 6
Medical expenses insurance 6
Personal motor insurance 6
Household insurance 6
Creditor insurance 7
Mortgages, consumer finance and credit cards 7
Weighted provider share of partnerships 7
Operating models 8
Abbreviations and exchange rates 9
PartnerBASE and market data annexe 9
Finaccord 9
2 0 MARKET BACKGROUND 12
Banks and other lending institutions covered 12
Economic background 12
Thailand benefits from an open and export-driven economy 12
although economic success is not shared equally across the country 13
In the Ease of Doing Business ranking, Thailand's economy is ranked 17th in the world 13
Introduction to the banking sector 14
In terms of its number of retail customers, Bangkok Bank leads the market 14
Government-owned institutions play an important role in the mortgage lending sector 14
The presence of foreign-owned banks in the market is comparatively limited,,, 15
with several overseas entities having exited the market in recent years 15
Introduction to bancassurance 15
Bancassurance in is well-developed especially for life insurance products 15
A number of banks have divested stakes in insurance companies in recent years 16
…although Siam Commercial Bank has taken full control of its joint venture 16
leaving only two bona fide joint venture insurers in the bancassurance sector 16
Many insurance companies sell through banks as a part of a multi-channel strategy 17
although those with the most exposure to bancassurance have tended to grow most rapidly 17
The Thai bancassurance market is subject to relatively 'light touch' regulation 17
3 0 INVESTMENT-RELATED LIFE INSURANCE AND RETIREMENT SAVINGS 18
Insurance market size and growth 18
The market for investment-related life insurance experienced rapid growth between 2008 and 2012 18
with a wide range of policy types in evidence 18
Distribution share of banks 20
Bancassurance accounts for over 35% of total life insurance premiums 20
Bancassurance provision rates, operating models and partnerships 20
Investment-related life insurance 20
One third of organisations surveyed in Thailand offer forms of investment-related life insurance products… 20
…with Krungthai-AXA Life leading the market in terms of its weighted share of partnerships 20
followed by SCB Life, which obtains over 80% of its business from bancassurance 20
The majority of banking organisations collaborate with a single external insurance provider 21
Retirement savings 23
Provision of retirement savings products is mostly limited to the larger banking networks 23
Bangkok Life secures over 60% of its business from the bancassurance channel 23
Performance of key bancassurance underwriters 23
4 0 PROTECTION-RELATED LIFE INSURANCE 25
Insurance market size and growth 25
Protection-related life insurance premiums increased strongly between 2008 and 2012 25
Distribution share of banks 26
Bancassurance provision rates, operating models and partnerships 26
Risk life insurance 26
Nearly 40% of Thailand's banking institutions promote some form of risk life insurance 26
with partnerships spread across ten different providers 26
26 banking organisations have no visible arrangement in place for risk life insurance 27
Critical illness insurance 29
Only a limited number of institutions surveyed are distributors of critical illness insurance… 29
…with familiar underwriters leading the market in terms of partnership share 29
Income protection insurance 29
Income protection insurance has yet to establish itself as a core bancassurance product 29
Performance of key bancassurance underwriters 32
The combined market share of key bancassurers increased consistently between 2007 and 2011 32
5 0 ACCIDENT AND HEALTH INSURANCE 33
Insurance market size and growth 33
The markets for accident and health insurance are roughly similar in terms of their size and growth 33
Accident and health cover is often offered as an add-on to life policies rather than stand-alone 33
Distribution share of banks 33
Banking organisations play an important role in the distribution of personal accident insurance 33
Bancassurance provision rates, operating models and partnerships 35
Accident insurance 35
Over a third of banking institutions surveyed act as distributors of stand-alone accident insurance 35
By weighted share of partnerships, Bangkok Life is a sector leader thanks to its deal with Bangkok Bank 35
ACE Life is utilised by three banking organisations in this field 35
27 banking organisations have no apparent scheme in place for accident insurance 35
Medical expenses insurance 37
Only six partnerships for medical expenses insurance are visible 37
with most deals similar to those also observed for accident cover 37
Health / hospital cash plans 38
Health or hospital cash plans are not commonly offered through banking organisations… 39
although ACE emerges as the sector leader as a result of two bank relationships 39
Performance of key bancassurance underwriters 41
6 0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE 42
Insurance market size and growth 42
Personal motor insurance is worth around 25 times as much as household insurance 42
partly because third party liability insurance is compulsory for car drivers 42
The regulation of non-life insurance products has tightened in recent years 42
Distribution share of banks 43
Bancassurance holds a distribution share of close to 10% of motor insurance 43
Bancassurance provision rates, operating models and partnerships 44
Personal motor insurance 44
Over a third of the banking organisations researched offer personal motor insurance 44
with Bangkok Insurance ranked first among providers by weighted share of partnerships 44
Household insurance 46
The provision rate for household insurance is higher than that for personal motor insurance 46
and the first three providers by weighted share of partnerships are identical 46
Performance of key bancassurance underwriters 48
SCB Samaggi has lost ground in motor insurance but increased its market share in fire insurance 48
7 0 CREDITOR INSURANCE 49
Consumer lending market size and growth 49
Mortgage lending 49
Residential mortgage balances grew at a nominal annual rate of 11 5% between 2008 and 2012 49
Non-mortgage lending 50
The compound annual growth rate for non-mortgage balances is higher than that for mortgages 50
Credit and other pay later cards 51
Credit card penetration in Thailand remains very low by international standards 51
Creditor insurance provision rates, operating models and partnerships 53
Creditor insurance linked to mortgages 53
Provision of creditor insurance by mortgage lending institutions is universal 53
By weighted share of partnerships, Krungthai-AXA is the most prominent competitor 53
AIA has a prominent position in this field when compared to that for other products 53
Creditor insurance linked to consumer finance 55
Loan payment protection insurance is offered by over 60% of eligible lenders in Thailand 55
with the leading providers identical to those for mortgage-related creditor insurance 55
Thai Cardif holds the most distribution partnerships 55
in a sector in which at least a dozen insurance providers are active 55
Creditor insurance linked to credit cards 57
Schemes for credit card payment protection insurance are less widespread in Thailand 57
On a weighted basis, the market is dominated by one captive and one joint venture underwriter 57
12 credit card issuers have no apparent scheme in place for card-related creditor insurance 57
Creditor insurance risk coverage 59
Some policies include cover for temporary incapacity but unemployment insurance is not present 59
Creditor insurance market size, growth and forecast 60
Growth in the creditor insurance market may accelerate slightly between 2012 and 2016 60
as a consequence of a continuing increase in consumer lending, especially non-mortgage credit 61


LIST OF GRAPHICS / TABLES
0 0 EXECUTIVE SUMMARY 1
Overview of bancassurance provision rates for different types of insurance in Thailand, 2012 2
1 0 INTRODUCTION 3
Banks and other lending institutions in Thailand contacted by Finaccord, segmented by type 4
2 0 MARKET BACKGROUND 12
Key economic indicators for Thailand, 2012 14
3 0 INVESTMENT-RELATED LIFE INSURANCE AND RETIREMENT SAVINGS 18
Gross written premiums for investment-related life insurance and retirement savings in Thailand, 2008 to 2012 19
Gross written premiums for investment-related life insurance and retirement savings in Thailand, 2008 to 2012 (data) 19
Bancassurance provision of investment-related life insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 22
Bancassurance provision of retirement savings in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 24
4 0 PROTECTION-RELATED LIFE INSURANCE 25
Gross written premiums for protection-related life insurance in Thailand, 2008 to 2012 25
Gross written premiums for protection-related life insurance in Thailand, 2008 to 2012 (data) 26
Bancassurance provision of risk life insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 28
Bancassurance provision of critical illness insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 30
Bancassurance provision of income protection insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 31
Market share in total life insurance of key bancassurance underwriters in Thailand, 2007 to 2011 32
5 0 ACCIDENT AND HEALTH INSURANCE 33
Gross written premiums for accident and health insurance in Thailand, 2008 to 2012 34
Gross written premiums for accident and health insurance in Thailand, 2008 to 2012 (data) 34
Bancassurance provision of accident insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 36
Bancassurance provision of medical expenses insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 38
Bancassurance provision health / hospital cash plans in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 40
Market share in accident insurance of key bancassurance underwriters in Thailand, 2007 to 2011 41
Market share in health insurance of key bancassurance underwriters in Thailand, 2007 to 2011 41
6 0 PERSONAL MOTOR AND HOUSEHOLD INSURANCE 42
Gross written premiums for personal motor and household insurance in Thailand, 2008 to 2012 43
Gross written premiums for personal motor and household insurance in Thailand, 2008 to 2012 (data) 43
Bancassurance provision of personal motor insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 45
Bancassurance provision of household insurance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 47
Market share in motor insurance of key bancassurance underwriters in Thailand, 2007 to 2011 48
Market share in fire insurance of key bancassurance underwriters in Thailand, 2007 to 2011 48
7 0 CREDITOR INSURANCE 49
Residential mortgage lending balances outstanding in Thailand (absolute and per capita), 2008 to 2012 49
Consumer non-mortgage lending balances outstanding in Thailand (absolute and per capita), 2008 to 2012 50
Credit and other pay later cards issued and per capita in Thailand, 2008 to 2012 51
Key data points for the consumer lending market in Thailand, 2008 to 2012 52
Provision of creditor insurance linked to mortgages in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 54
Provision of creditor insurance linked to consumer finance in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 56
Provision of creditor insurance linked to credit cards in Thailand, 2012: provision rate, operating models and weighted provider share of partnerships 58
Risk coverage of creditor insurance policies in Thailand, segmented by type of underlying product, 2012 59
Creditor insurance gross written premiums in Thailand, segmented by policy type, 2008, 2012 and 2016 60
Creditor insurance gross written premiums in Thailand, segmented by cover type, 2008, 2012 and 2016 61
Creditor insurance gross written premiums in Thailand, segmented by policy and cover type, 2008, 2012 and 2016 (data) 62

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
Bancassurance Global Market Briefing 2017

Bancassurance Global Market Briefing 2017

  • $ 1000
  • Industry report
  • December 2016
  • by TBRC Business Research

Bancassurance refer to selling insurance products and services through banking institutions. This distribution channel includes joint ventures between banks and insurance companies or banks selling insurance ...

Non-Life Insurance in Switzerland, Key Trends and Opportunities to 2020

Non-Life Insurance in Switzerland, Key Trends and Opportunities to 2020

  • $ 1450
  • Industry report
  • February 2017
  • by Timetric

Synopsis Timetric’s 'Non-Life Insurance in Switzerland Key Trends and Opportunities to 2020' report provides a detailed outlook by product category for the Swiss non-life insurance segment, and a comparison ...

Life Insurance in Japan, Key Trends and Opportunities to 2020

Life Insurance in Japan, Key Trends and Opportunities to 2020

  • $ 1450
  • Industry report
  • February 2017
  • by Timetric

Synopsis Timetric’s 'Life Insurance in Japan, Key Trends and Opportunities to 2020' report provides a detailed outlook by product category for the Japanese life insurance segment, and a comparison of ...


Download Unlimited Documents from Trusted Public Sources

Insurance Market Size in China

  • January 2017
    4 pages
  • Insurance  

  • China  

    Asia  

View report >

Reinsurance Industry in Brazil - Forecast

  • January 2017
    35 pages
  • Reinsurance  

    Insurance  

  • Brazil  

    South America  

View report >

General Insurance Market Forecast in Asia

  • January 2017
    2 pages
  • General Insuran...  

  • Asia  

    China  

    Singapore  

View report >

Related Market Segments :

Bancassurance
Credit Insurance

ref:plp2013

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.