Towards Inclusive Insurance in Thailand: An Analysis of the Market and Regulations

This paper identifies gaps, opportunities, and potential next steps regarding the supply, demand, and regulation of microinsurance in Thailand. It paper discusses the economic context, demographic and socioeconomic profile, and the broader financial sector in Thailand. It also throws light on the suppliers of microinsurance, commercial products, distribution channels, perceived risks, and current coping mechanisms in Thailand. Key findings include:

• Proportion of microinsurance products offered by the private sector only accounts for 11.5% of insured representing a major imbalance between the public and private sector in general;
• Despite the seemingly high volume and variety of products available, the penetration figures remain very low with the exception of credit-life and industrial products;
• Distribution occurs significantly through the state financial institutions (SFIs), community-based organizations, banks, cooperatives and credit unions, as well as agents accredited for microinsurance sales through the Microinsurance Framework (developed by the Office of the Insurance Commission). Several other distribution channels with significant potential are yet untouched;
• Risks that came up as the most important were those linked to income-generation, either impacting the ability of the breadwinner to work (accident, extended illness, job loss for semi-formal employee) or damage to vehicle/shop that would prevent people from working.