Despite expensive recent natural disasters, Fitch has deemed Thailand’s insurance industry ‘stable’ and said that the impact of the floods is only short term. The announcement was made at this years Thailand Insurance Conference held in Bangkok.
While Thailand was the main focus of the conference, Asia’s wider insurance industry was discussed as well. The outlook for the life insurance and non-life insurance sectors in China, Malaysia, Indonesia and Japan were all said to be stable, reflecting the strong economic climate in Asia at the moment.
Fitch did, however, warn the Asian market of a number of challenges to be faced including natural disasters and government regulations.
On the topic of the recent floods, Narumol Charnchanavivat, Director of Thai Banks/Insurance said the impact of life insurance claims has generally been limited, but it has been much more severe for general insurers.
Fitch finished by saying Asian insurers are in a good position to cope with tough market conditions because of their strong capital and assets.
