Last year Thailand experienced an unusually high number of severe events, starting with an earthquake in March that shook Bangkok and finishing with severe floods in the central plains and other parts of the country, including the southern trading hub of Hat Yai.
Infrastructure incidents, notably a sinkhole collapsing on Samsen Road in Bangkok's Dusit area, also increased public awareness of natural catastrophe risks.
"Globally we are seeing a clear trend of more frequent and severe natural catastrophes, and Thailand has felt this especially in recent years," Lars Heibutzki, chief executive of Allianz Ayudhya General Insurance, told the Bangkok Post.
"We expect more companies and households to reassess their protection needs."
During natural disasters, speed and reliability make all the difference. In Mr Heibutzki's view, customers are looking for not only financial coverage, but also fast, clear and uncomplicated claims support when something happens.
"People increasingly view insurance as part of their broader resilience strategy, and we see growing demand for strong partners who can both protect and respond," he said.
Allianz Ayudhya understands the importance of being there when customers need it, with its teams acting quickly to support inundated clients during the recent floods in Hat Yai, said Mr Heibutzki.
For customers, improving building resilience, installing flood barriers and elevating equipment can help reduce exposure, according to the insurer.
At the national level, continued investments in critical infrastructure, such as enhanced drainage systems, flood channels and early warning systems, play a major role in lowering community risk, noted Allianz Ayudhya.
"If households, businesses, insurers and authorities work together, we can strengthen Thailand's resilience and help keep protection both sustainable and affordable over the long term," he said.
Severe flooding becomes a norm for Thailand along with growing risks of natural disasters, prompting more companies and households to reassess their protection needs, says Allianz Ayudhya General Insurance,
PREMIUM UPTICK
While insurers need to cope with growing risks, Mr Heibutzki said it is too early to comment on specific premium levels for 2026.
"Insurers and reinsurers regularly review pricing based on updated scientific data, claims experience and exposure models. The industry will continue adjusting pricing to reflect the actual risk environment," he said.
"Equally important is the role of risk prevention. Premium affordability is not determined by insurance alone. It also depends on how well risks are managed and reduced."
Soaring medical costs is another critical factor that could push insurance premiums to rise.
"Medical cost pressures, particularly hospital costs, specialist fees and advanced treatments, will continue to influence insurance pricing in 2026, especially for health-related products," said David Korunic, chief executive for Thailand and Cambodia at FWD Life Insurance.
However, these pressures are unlikely to translate into a uniform surge in insurance premiums across the market, said Mr Korunic.
"Pricing today is no longer driven by costs alone," he told the Bangkok Post.
"Premium movements will be more selective and differentiated, depending on how effectively insurers manage risk, design coverage and leverage data and technology."
Insurers now have more advanced tools to manage risk more precisely. Data analytics, artificial intelligence-enabled underwriting and more efficient claims management are helping insurers better understand customer risk profiles and improve cost control.
In parallel, the integration of wellness and preventive care initiatives can play a meaningful role in reducing long-term claims exposure, said Mr Korunic.
Looking ahead, he said premium movements will be shaped by a combination of structural and economics factors, led by the pace of medical cost inflation and healthcare pricing.
Premiums will be set based on the industry's ability to simplify coverage while maintaining value, as well as the effectiveness of wellness and preventive initiatives, said Mr Korunic. Another critical factor is broader economic conditions and household financial resilience.
"Rather than broad increases, the market is likely to move towards needs-based pricing, where premiums better reflect individual risk, behaviour and coverage choices," he said.
For insurers, the key challenge is to balance affordability with long-term protection value, while continuing to build trust through transparency and simplicity, said Mr Korunic.
FACING CHALLENGES
Driving premium growth is no longer the goal, but rather staying relevant to how people live, work and think about financial security, he said.
"Consumers face real pressure from rising medical costs and economic uncertainty regarding longer life expectancy and more complex health needs," said Mr Korunic.
"These realities make affordability, clarity and trust more critical than ever."
Insurance products that are difficult to understand or feel disconnected from everyday life will "struggle to resonate", he said.
However, Mr Korunic said there are pockets of opportunity in the industry.
"People are more health-conscious, more aware of financial risks and more open to protection solutions provided by insurers that can meet them with simplicity, transparency and tangible value," he said.
FWD predicts industry growth will be driven by three priorities, with the first insurers should be less focused on complexity, delivering simple, relevant protection that clearly addresses real-life needs.
"Products do not need to be fancy. They need to be easy to understand, easy to use and meaningful in everyday life," said Mr Korunic.
Second, technology and data should be used not only to improve efficiency, but also to build stronger, long-term relationships with customers, supporting them throughout their lives, from prevention and wellness to faster and fairer claims, he said.
"Lastly, clarity will be a key differentiator," said Mr Korunic.
"Insurers who can make coverage easier to understand, easier to buy and easier to claim will earn long-term trust."
