Thailand’s insurance industry has been experiencing an unprecedented transformation. The country leads Southeast Asia’s emerging markets with an estimated compound annual growth rate of 4.1% in 2024, says GlobalData, and its rapid digital adoption has meant that Thais are changing how they access, purchase and manage insurance. Regulatory reforms have boosted innovation, with shifts in consumer behaviour towards mobile-first experiences.

The Thai government has championed insurtech innovation through comprehensive regulatory reforms.

After establishing a regulatory sandbox framework in 2017 and the Center of Insurtech in 2018, the Office of Insurance Commission (OIC) delivered a major overhaul in December 2023, strengthening governance standards and capital requirements while giving insurers greater product flexibility. Recent 2024 changes have allowed insurers to offer up to 30% discounts for direct purchases and 35% for digital channel sales, directly incentivising digital adoption and positioning Thailand as a regional leader in progressive insurance regulation.

Shifting demographics, different playbook

As the kingdom’s economy develops and matures, it is also shifting in terms of demographics: the country is now one of the fastest aging in South-east Asia, and its public health insurance schemes have now under strain, potentially boosting demand for life and health insurance. The Thai life insurance industry is projected to grow at a compound annual growth rate of 4.4% to US$22 billion in 2028, GlobalData says, as more Thais grow older and are more aware of their health needs.

Traditional insurers — long perceived as slow-to-move — have started embracing digital transformation, partnering with startups challenging established models, fostering innovation in the sector. Thai insurers have rapidly adopted artificial intelligence and IoT technologies to enhance customer experience and operational efficiency, with AIA Thailand acheiving a 87% automation rate, increasing its ability in processing claims and underwriting life policies, at a key time for the Thai market, when the industry is moving to cater to the growing needs of its ageing population.

Innovation has also accelerated health insurance digitisation, with the OIC exploring integrating health data via a new “Health Link” platform in July 2025. Health Link is expected to streamline insurance underwriting and claims processes and reduce documentation burdens, the OIC says, helping insurers lower claims handling and operational costs.

Thai consumers are notably open to data sharing, with 56% of Thai policyholders saying they were more inclined to give out personal information if it meant that their insurance cover was more personalised, according to a 2023 Capco survey. Over 83% of Thai income protection policyholders surveyed also expressed a desire for more personalised policies, with many policyholders also expressing interest in additional features, like access to online health resources, telehealth, tracking driving habits and home security.

As more Thais switch to electric vehicles (EVs) amidst regulatory revamps on EV insurance codes, the country’s motor insurance sector is also projected to grow despite a dip linked to slower auto sales. New regulatory frameworks have also encourage behaviour-based premiums, positioning the country ahead of regional peers in addressing regional mobility trends.

More data, more personalisation

All this have meant a slew of opportunities for insurtechs in the country, as its insurtech sector matures.

Firms have taken advantage of these opportunities for growth. B2C motor insurtech Roojai acquired FWD General Insurance’s Thai arm and DirectAsia Thailand, creating the country’s first fully-integrated digital insurer in 2024, and Bangkok-based insurtech Sunday raised US$10 million in a Series A funding round in March this year, acquiring Indonesian general insurer KSK Insurance.

Still, insurers and insurtechs have room to grow. The country has a general insurance penetration rate of 1.59% — significantly lower than regional peers including Australia, Japan and Hong Kong, but also indicative of growth potential, and as 26.6% of Thais are expected to be 60+ by 2030, demand for health and life products is certain to increase.

As the Thai insurance industry stands at an inflection point amidst digital transformation, regulatory modernisation and consumer behaviour shifts, firms that come out on top will be those that master omnichannel customer experiences, utilise AI to build operational efficiency, and leverage strong financial backing and strategic partnerships.

Seizing the moment

Thailand’s insurance transformation has presented itself to be a compelling convergence of market opportunity, regulatory support and consumer trends that positions the country as one of Southeast Asia’s most promising insurtech destinations.

For insurers and insurtechs looking to capitalise on these opportunities, the path forward requires deep understanding of local market dynamics, regulatory frameworks, and consumer behaviour.

Success demands more than just technological innovation; it requires mastering the delicate balance between digital efficiency and the trust-based relationships that remain central to Thai consumer preferences.

Trends within the insurance industry have proven that digital transformation isn’t merely a supplement to traditional insurance — it is an essential component for an insurer to grow and sustain themselves in the next decade.

Find out more at ITC Series happening on October 1st, 2025, at the Hilton Sukhumvit Bangkok, where industry leaders will tackle the most pressing challenges and opportunities shaping Thailand's insurance future.

Our ITC Series event will feature essential sessions covering how insurers can build holistic solutions for Thailand’s ageing society, and how insurers can innovate and build for emerging risks in EVs and smart homes as they reshape risk assessment and coverage needs.

Attendees will also get to explore the future of digital and advisory channels, to learn how to navigate consumers who prefer digital purchases but still want the personal touch in phone communication, look into critical ways to serve Thais who lack insurance protection, and collaborate between traditional insurers and startups to shape Thailand’s insurtech market.

Be part of Thailand’s insurtech future — sign up today!