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The Critical Illness (CI) insurance market in Thailand has experienced significant growth in recent years. As a pioneer in conducting CI insurance market studies, Gen Re has embarked on a special edition of its CI Data Insights study for the Thailand market. This comprehensive study covers the period from 1 January 2015 to 31 December 2022. We thank our participating companies once again for their support to this research.
In this blogpost, we will examine the key findings of our study, including market trends and comparative analyses with other markets, illustrated by the infographic below.
With the median age of the population being 39.7 years, Thailand has the most senior demographic among Southeast Asian nations, significantly higher than both Malaysia (30.1) and Singapore (35.1).1 This demographic trend is mirrored in our study findings, where the mean age of CI insurance policyholders in Thailand at age 36 notably exceeds that of Malaysia and Singapore, at age 24 and 28, respectively. This observation is interesting as the population to insured age gap for Thailand is 3.7 years old, but in Malaysia and Singapore it is 6.1 and 7.1 years old. This might suggest significant untapped opportunities in Thailand’s younger market segments, particularly in the juvenile insurance market.
The Thailand market shows a higher proportion of female CI policyholders, at 61% compared to males. While this trend of gender distribution aligns with trends observed in Mainland China, Hong Kong, and Singapore with the proportion of female policies at 52%, 55%, and 53% respectively, the gender gap in Thailand is notably wider. This pronounced disparity suggests an opportunity to increase market penetration among male consumers in Thailand through targeted outreach efforts.
Thailand has witnessed considerable growth in major critical illness protection coverage. The average protection amount increased from THB 440,000 in 2015 to THB 535,000 in 2022, representing a 22% growth. This is encouraging for the market as the average wage growth in Thailand has grown less than that, at 13% from THB 13,487 to THB 15,272 from 2015 to 2022.2 That said, CI insurance penetration in the Thai market is still in its early stages, and with a stronger understanding of the CI product among the general population, we expect further growth in the average protection amount in the future.
The Thai market has observed a trend that the average age for death claims in males is lower than the average age for both major CI and early CI claims. This observation is interesting as the average age at claim for death in other markets is typically higher than that of CI. This is probably attributable to a high proportion of accidental death claims among younger male policyholders.
Death claim proportions in the Thailand market are notably higher than in other markets, at 45% for males and 17% for females. In Hong Kong and Singapore markets, the death claims proportion ranges between 10% and 20%, and in Malaysia and Mainland China markets, the death claims proportion ranges between 20% and 35%. The period from 2015 to 2022 shows a declining trend in death claim proportions. Early CI claims remain relatively low, reflecting the market’s nascent stage in early CI conditions.
While the “Big Three” critical illnesses (cancer, heart attack, and stroke) dominate claims in Thailand at 66% for males and 82% for females, their proportion is lower than in mature markets such as Singapore (88% for males, 91% for females) and Hong Kong (86% for males, 93% for females). The Thai market shows similar patterns to the Malaysian market, with male claims at 66% (compared to Malaysia’s 70%) and female claims at 62% (versus Malaysia’s 80%). These proportions may evolve with advancing medical technology.
Cancer claims analysis reveals site-specific patterns consistent with other Asian markets. Colorectal cancer leads male claims, while breast cancer dominates female claims, similar to claims in Malaysia, Singapore, and Hong Kong. Distinctively, liver and bile duct cancer ranks second among male claims, a pattern also observed in Mainland China.
A noteworthy trend emerges in female cancer claims, with lung cancer ranked in third position. This is an unusual occurrence otherwise seen only in the Mainland China market. For males, lung cancer also ranks third in Thailand. This elevated incidence of lung cancer, particularly among females, may correlate with environmental factors, including Thailand’s documented air pollution challenges.3
If you have any questions about the research or would like to find out more about how to participate in future, please don’t hesitate to reach out.
Endnotes accessed 21 November 2024.
