Insurers face a raft of economic challenges

Unfavourable economic conditions, political instability, soaring medical costs and natural disaster risks are the top challenges facing insurance companies in Thailand, while the country's ageing society could support continued health insurance expansion.

- NAREERAT WIRIYAPONG

Guillaume Mirabaud, chief executive of AXA Insurance Thailand, said there are several challenges for 2026, with the top concern the economic context.

“Global macro uncertainty is unfavourable for business development. Further stabilisation may help a return to a more favourable trend,” he said.

“Political instability in the country is another negative factor, as investors and companies lack predictability.”

In terms of insurance, he said the key risk is natural catastrophes following the earthquake in March and several floods, including the recent inundation in the southern provinces.

“This is a strong reminder that Thai society needs to prepare for more extreme events, as climate change is not theoretical,” said Mr Mirabaud.

Insurance companies should revise their underwriting as prices will “inevitably increase”, he said.

“Individuals and small business owners should be aware they will need better coverage,” said Mr Mirabaud.